Capital Product Partners LP (NASDAQ:CPLP) is predicted to grow its earnings per share by a robust double-digit 36.49% over the next three years. With the recent EPS being $0.293, expected growth will push the upcoming EPS to $0.4. To assess the reasonability of CPLP’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for CPLP
Can we expect CPLP to keep growing?Analyst expectation from the stock’s 7 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $0.293 to $0.4 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 36.49% over the next few years. In the same period and net income is predicted to slightly grow from $35M to $48M in the next couple of years, growing by 36.49%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Basis for the growthThe 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. However, CPLP’s earnings growth in the past couple of years has been negative at -18.78%. Although its past performance is not supportive of a positive growth trend, it could also mean CPLP is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
For CPLP, I’ve compiled three relevant factors 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 CPLP 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 CPLP is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CPLP? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!