In This Article:
Carindale Property Trust’s (ASX:CDP) released its most recent earnings update in June 2018, which indicated that the company endured a immense headwind with earnings deteriorating by -39%. Below, I’ve presented key growth figures on how market analysts perceive Carindale Property Trust’s earnings growth outlook over the next couple of years and whether the future looks brighter. 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 Carindale Property Trust
Market analysts’ prospects for the upcoming year seems pessimistic, with earnings reducing by -9.4%. Over the medium term, earnings should continue to be below today’s level, with a decline of -10.0% in 2020, eventually reaching AU$24m in 2021.
Although it’s useful to understand the rate of growth each year relative to today’s figure, it may be more beneficial determining the rate at which the company is growing on average every year. The pro of this approach is that we can get a bigger picture of the direction of Carindale Property Trust’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate 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 1.5%. This means, we can presume Carindale Property Trust will grow its earnings by 1.5% every year for the next couple of years.
Next Steps:
For Carindale Property Trust, there are three relevant factors you should further research:
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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.
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Valuation: What is CDP 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 CDP is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CDP? 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.