Cognor Holding SA. (WSE:COG): What Does The Future Look Like?
Cognor Holding SA.’s (WSE:COG) most recent earnings announcement in December 2017 revealed that the company gained from a significant tailwind, more than doubling its earnings from the prior year. Today I want to provide a brief commentary on how market analysts view Cognor Holding’s earnings growth trajectory over the next few 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. View our latest analysis for Cognor Holding
Analysts’ outlook for this coming year seems rather subdued, with earnings expanding by a single digit 6.71%. The growth outlook in the following year seems much more optimistic with rates reaching double digit 26.25% compared to today’s earnings, and finally hitting ZŁ63.29M by 2021.
Although it’s informative understanding the growth rate year by year relative to today’s figure, it may be more valuable estimating the rate at which the business is rising or falling every year, on average. The benefit of this method is that we can get a bigger picture of the direction of Cognor Holding’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 put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 10.17%. This means, we can presume Cognor Holding will grow its earnings by 10.17% every year for the next few years.
Next Steps:
For Cognor Holding, I’ve put together three essential factors you should further examine:
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 COG 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 COG is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of COG? 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.
