Will Guardian Capital Group Limited’s (TSX:GCGA) Earnings Grow In Next 12 Months?
Guardian Capital Group Limited (TSX:GCG.A) is expected to deliver an underwhelming -39.49% in earnings per share drop over the next year. With the recent EPS being $2.902, expected contraction will pull down the upcoming EPS to $1.756. To assess the reasonability of GCG.A’s earnings per share decline, we should look at its most recent growth rate delivered. Check out our latest analysis for Guardian Capital Group
Troubled times ahead
The next couple of years are a potential rough ride for Guardian Capital Group. Analysts are predicting the earnings to slide down to $1.756 in the three year’s time from previous levels of around $2.902. This would be a decline of -39.49%, so it will be an interesting ride. In the same period revenue is predicted to grow from $149M $0M
Basis for the contraction
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is unwarranted or whether the negative outlook is too harsh. GCG.A is expected to face a significant change from a previous double-digit growth of 50.31%, over the past year, to a forecast double-digit decline by analysts. This is highly bearish and may be a sign of an investment period for GCG.A, incurring higher expense growth than revenue.
Next Steps:
For GCG.A, there are three pertinent factors you should further examine:
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 GCG.A 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 GCG.A is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of GCG.A? 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.
