Yahoo Finance How Do Analysts See The Citadel Group Limited (ASX:CGL) Performing In The Year Ahead?
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Based on The Citadel Group Limited’s (ASX:CGL) earnings update on 31 December 2018, it seems that analyst expectations are fairly bearish, as a 19% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 28%. With trailing-twelve-month net income at current levels of AU$16m, we should see this rise to AU$19m in 2020. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Citadel Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Citadel Group
Can we expect Citadel Group to keep growing?
The longer term view from the 4 analysts covering CGL is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of CGL’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 19% based on the most recent earnings level of AU$16m to the final forecast of AU$28m by 2022. This leads to an EPS of A$0.57 in the final year of projections relative to the current EPS of A$0.32. Margins are currently sitting at 15%, which is expected to expand to 16% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Citadel Group, I’ve compiled three key aspects you should further research:
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 Citadel Group 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 Citadel Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Citadel Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
