Carmanah Technologies Corporation (TSX:CMH): Immense Growth Potential?
Carmanah Technologies Corporation (TSX:CMH) is expected to deliver a solid 43.19% in earnings growth per share over the next year. At a current EPS of CA$0.094, this growth rate means shareholders can expect an impending EPS of CA$0.135. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for CMH
Can we expect CMH to keep growing?
Analyst expectation from the stock’s 3 analysts is one of positive sentiment, with earnings estimated to expand from current levels of CA$0.094 to CA$0.135 over the next year. This indicates a relatively solid earnings per share growth rate of 43.19% over the next 1-2 years, which is an optimistic outlook in the near term. During the same time we should see the revenue grow from CA$45M CA$57M
Is this similar growth to the past?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. CMH’s earnings growth last year was a weaker rate of 2.73%, indicating a relatively more bullish outlook for the company in the near future. This belief may be supported by turnaround initiatives or previous investments coming to fruition.
Next Steps:
For CMH, I’ve put together three key aspects you should look at:
1. 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.
2. Valuation: What is CMH 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 CMH is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CMH? 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.
