Yahoo Finance How Do Analysts See The Citadel Group Limited (ASX:CGL) Performing In The Years Ahead?
The Citadel Group Limited’s (ASX:CGL) most recent earnings update in June 2018 signalled that the business gained from a robust tailwind, leading to a double-digit earnings growth of 38.2%. Below, I’ve laid out key growth figures on how market analysts perceive Citadel Group’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Citadel Group
Analysts’ outlook for the coming year seems optimistic, with earnings rising by a robust 19.2%. This growth seems to continue into the following year with rates arriving at double digit 26.6% compared to today’s earnings, and finally hitting AU$22.5m by 2021.
Although it’s helpful to understand the rate of growth each year relative to today’s level, it may be more beneficial evaluating the rate at which the company is growing on average every year. The pro of this technique is that we can get a bigger picture of the direction of Citadel Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 8.0%. This means that, we can assume Citadel Group will grow its earnings by 8.0% every year for the next few years.
Next Steps:
For Citadel Group, there are three essential aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is CGL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CGL is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CGL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
