What Should You Know About Colfax Corporation’s (CFX) Growth?
Based on the latest analyst predictions, Colfax Corporation (NYSE:CFX) is estimated to considerably grow its earnings by 81.42% in the upcoming three years. At a current EPS of $1.282, this growth rate means shareholders can expect an impending EPS of $2.326. 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 Colfax
How is CFX going to perform in the future?
According to the analysts covering the company, in a few years should bring some good growth prospects for Colfax. Expectation from the stock’s 14 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $1.282 to $2.326 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 81.42% over the next few years. During the same time revenue is predicted to increase from $3,624M to $3,949M and profit is predicted to grow from $158M to $286M in the next couple of years, growing by 81.42%. Margins are expected to be rather acceptable at 7.32%.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. CFX’s triple-digit earnings growth the past couple of years indicates that the company’s past performance is quite revealing of future outcome. This means CFX has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For CFX, I’ve compiled three relevant factors 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 CFX 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 CFX is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CFX? 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.
