Yahoo Finance How Do Analysts See Canadian Utilities Limited (TSE:CU) Performing In The Year Ahead?
After Canadian Utilities Limited's (TSE:CU) earnings announcement in December 2018, analysts seem cautiously optimistic, with profits predicted to increase by 4.7% next year against the past 5-year average growth rate of -6.2%. Currently with trailing-twelve-month earnings of CA$567m, we can expect this to reach CA$594m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Canadian Utilities
Can we expect Canadian Utilities to keep growing?
The 8 analysts covering CU view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of CU's earnings growth over these next few years.
By 2022, CU's earnings should reach CA$680m, from current levels of CA$567m, resulting in an annual growth rate of 5.4%. EPS reaches CA$2.38 in the final year of forecast compared to the current CA$2.09 EPS today. Margins are currently sitting at 13%, which is expected to expand to 16% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Canadian Utilities, I've compiled three pertinent factors you should further examine:
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 Canadian Utilities 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 Canadian Utilities is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Canadian Utilities? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
