Analysts covering Central Pacific Financial Corp (NYSE:CPF) are predicting double-digit earnings per share growth of 10.80% over the next 12 months. With the recent EPS being $1.606, expected growth will push the upcoming EPS to $1.78. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. Check out our latest analysis for Central Pacific Financial
Exciting times ahead?
CPF is covered by 4 analysts who by consensus are expecting earnings to increase from today;s level of $1.606 to $1.78 over the next year. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 10.80% over the next 1-2 years. During the same time revenue is expected to grow from $206M $214M and net income is predicted to slightly grow from $49M to $54M in upcoming year, roughly staying around the same level. However, at this level of revenue and earnings, margins are expected to be extremely healthy.
Is this similar growth to the past?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. CPF’s earnings growth last year was a weaker rate of 9.41%, indicating a relatively more upbeat attitude towards the company in the upcoming year. This belief may be supported by turnaround initiatives or previous investments coming to fruition.
For CPF, I’ve put together three key 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 CPF 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 CPF is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CPF? 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.