In June 2018, Clinigen Group Plc (LON:CLIN) announced its most recent earnings update, which signalled that the business experienced a significant tailwind, more than doubling its earnings from the prior year. Below, I’ve presented key growth figures on how market analysts view Clinigen Group’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Analysts’ outlook for the coming year seems optimistic, with earnings rising by a significant 54%. This strong growth in earnings is expected to continue, bringing the bottom line up to UK£76m by 2021.
Even though it’s useful to understand the growth year by year relative to today’s level, it may be more valuable to determine the rate at which the earnings are rising or falling on average every year. The pro of this method is that we can get a better picture of the direction of Clinigen Group’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’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 22%. This means, we can expect Clinigen Group will grow its earnings by 22% every year for the next few years.
For Clinigen Group, I’ve compiled three relevant aspects you should further research:
- 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 CLIN 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 CLIN is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CLIN? 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 past 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. For errors that warrant correction please contact the editor at email@example.com.