Cheniere Energy Partners LP Holdings LLC’s (AMEX:CQH) latest earnings update in December 2017 suggested that the company benefited from a substantial tailwind, more than doubling its earnings from the prior year. Today I want to provide a brief commentary on how market analysts view Cheniere Energy Partners Holdings’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. 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 Cheniere Energy Partners Holdings
Analysts’ expectations for next year seems positive, with earnings growth more than doubling. However, earnings seem to drop of in the following year arriving at US$632.72M by 2021.
Although it is informative knowing the growth rate each year relative to today’s figure, it may be more valuable analyzing the rate at which the company is moving every year, on average. The pro of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Cheniere Energy Partners Holdings’s earnings trajectory over time, 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 34.82%. This means that, we can assume Cheniere Energy Partners Holdings will grow its earnings by 34.82% every year for the next couple of years.
For Cheniere Energy Partners Holdings, 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 CQH 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 CQH is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CQH? 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.