What Should We Expect From CSE Global Limited's (SGX:544) Earnings In The Next Couple Of Years?
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In December 2018, CSE Global Limited (SGX:544) released its most recent earnings announcement, which showed that the business turned profitable again after incurring negative earnings in the last financial year. Below, I've laid out key numbers on how market analysts predict CSE Global's earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for CSE Global
Market analysts' consensus outlook for next year seems rather muted, with earnings rising by a single digit 6.2%. The growth outlook in the following year seems much more positive with rates arriving at double digit 14% compared to today’s earnings, and finally hitting S$24m by 2022.
While it is useful to understand the rate of growth each year relative to today’s value, it may be more insightful analyzing the rate at which the company is rising or falling every year, on average. The benefit of this technique is that we can get a better picture of the direction of CSE Global's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate 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 6.2%. This means that, we can expect CSE Global will grow its earnings by 6.2% every year for the next few years.
Next Steps:
For CSE Global, there are three pertinent factors 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 544 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 544 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 544? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.