Market analysts’ prospects for next year seems positive, with earnings becoming less negative, arriving at -US$9.98M in 2019. Furthermore, earnings are predicted to continue its upward trajectory, generating -US$4.50M in 2020, and -US$1.08M in 2021.
While it’s helpful to be aware of the growth rate each year relative to today’s figure, it may be more beneficial to determine the rate at which the company is rising or falling every year, on average. The pro of this approach is that we can get a better picture of the direction of CHF Solutions’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 put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 67.94%. This means, we can assume CHF Solutions will grow its earnings by 67.94% every year for the next couple of years.
Next Steps:
For CHF Solutions, there are three essential factors 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.
- Future Earnings: How does CHFS’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CHFS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!