In December 2017, Cliq Digital AG (XTRA:CLIQ) released its latest earnings announcement, which signalled that the business gained from a robust tailwind, leading to a double-digit earnings growth of 19.70%. Below, I’ve laid out key growth figures on how market analysts predict Cliq Digital’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for Cliq Digital
Analysts’ outlook for next year seems rather muted, with earnings climbing by a single digit 0.40%. The growth outlook in the following year seems much more buoyant with rates generating double digit 18.66% compared to today’s earnings, and finally hitting €4.40M by 2021.
Although it’s informative knowing the growth year by year relative to today’s level, it may be more valuable determining the rate at which the business is moving every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Cliq Digital’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve inserted 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 10.59%. This means that, we can presume Cliq Digital will grow its earnings by 10.59% every year for the next few years.
For Cliq Digital, there are three important 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 CLIQ 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 CLIQ is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CLIQ? 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 pass 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.