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Charter Hall Group (ASX:CHC): Are Analysts Bullish?

Simply Wall St

Charter Hall Group's (ASX:CHC) latest earnings update in August 2019 showed that the company faced a slight headwind with earnings deteriorating from AU$251m to AU$237m, a change of -5.7%. Below, I've laid out key growth figures on how market analysts perceive Charter Hall Group's earnings growth trajectory over the next few years and whether the future looks brighter. 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.

View our latest analysis for Charter Hall Group

Analysts' outlook for the coming year seems optimistic, with earnings climbing by a robust 27%. However, earnings is expected to fall in the following year before rising again to AU$341m in 2022.

ASX:CHC Past and Future Earnings, September 16th 2019

Even though it’s useful to be aware of the growth each year relative to today’s figure, it may be more insightful evaluating the rate at which the company is growing on average every year. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Charter Hall Group'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 7.3%. This means that, we can expect Charter Hall Group will grow its earnings by 7.3% every year for the next couple of years.

Next Steps:

For Charter Hall Group, I've compiled three essential 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 CHC 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 CHC is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CHC? 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 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.