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In December 2018, ComfortDelGro Corporation Limited (SGX:C52) released its most recent earnings announcement, which revealed that the business gained from a small tailwind, leading to a single-digit earnings growth of 0.6%. Below, I've laid out key numbers on how market analysts perceive ComfortDelGro's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Analysts' expectations for the coming year seems rather subdued, with earnings expanding by a single digit 4.9%. The following year doesn't look much more exciting, though earnings does reach S$344m in 2022.
While it is helpful to understand the growth rate each year relative to today’s value, it may be more valuable to estimate the rate at which the business is rising or falling every year, on average. The pro of this method is that we can get a bigger picture of the direction of ComfortDelGro'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 appended 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 4.0%. This means, we can anticipate ComfortDelGro will grow its earnings by 4.0% every year for the next couple of years.
For ComfortDelGro, I've compiled three key aspects you should look at:
- 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 C52 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 C52 is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of C52? 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 firstname.lastname@example.org. 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.