Qiwi plc (NASDAQ:QIWI) is predicted to grow its earnings per share by a massive 149.42% over the next three years. With the recent EPS being RUB44.883, expected growth will push the upcoming EPS to RUB111.945. To assess the reasonability of QIWI’s earnings growth per share, we should look at its most recent growth rate delivered. Check out our latest analysis for Qiwi
Can we expect QIWI to keep growing?
The excitement around Qiwi’s growth potential is not unfounded. Expectations from 9 analysts are very high, with earnings expected to rise from today’s level of RUB44.883 to RUB111.945 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 149.42% over the next few years. In the same period revenue is expected to reduce slightly from RUB18,706M to RUB17,677M and profits (net income) are predicted to shoot from RUB2,719M to RUB6,782M in the next couple of years, roughly growing 2.3x. At this level of revenue and profit, margins are predicted to be extremely healthy as well.
Basis for the growth
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. QIWI’s earnings growth in the last five years was a weaker 18.30%, indicating a relatively more optimistic future painted for the company in the future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
For QIWI, there are three essential aspects you should further research:
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 QIWI 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 QIWI is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of QIWI? 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.