In December 2017, CeGeREAL (ENXTPA:CGR) announced its most recent earnings update, which showed that the business gained from a large tailwind, eventuating to a high double-digit earnings growth of 51.24%. Below, I’ve laid out key growth figures on how market analysts perceive CeGeREAL’s earnings growth trajectory over the next few 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. See our latest analysis for CeGeREAL
Market analysts’ consensus outlook for next year seems pessimistic, with earnings declining by a double-digit -31.93%. Beyond this, earnings are expected to continue to be below today’s level, with a decline of -35.38% in 2020, eventually reaching €40.33M in 2021.
While it’s informative knowing the rate of growth each year relative to today’s level, it may be more insightful to evaluate the rate at which the earnings are rising or falling every year, on average. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of CeGeREAL’s earnings trajectory over time, fluctuate up and down. 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 -3.01%. This means, we can expect CeGeREAL will chip away at a rate of -3.01% every year for the next couple of years.
Next Steps:
For CeGeREAL, I’ve compiled three important factors you should further examine:
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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 CGR 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 CGR 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 CGR? 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.