What Are Analysts Expecting From Swire Pacific Limited (HKG:19) In The Years Ahead?
The latest earnings update Swire Pacific Limited’s (SEHK:19) released in December 2017 indicated that the company gained from a substantial tailwind, more than doubling its earnings from the prior year. Below, I’ve laid out key growth figures on how market analysts view Swire Pacific’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for Swire Pacific
Analysts’ outlook for the upcoming year seems pessimistic, with earnings declining by a double-digit -72.61%. Beyond this, earnings should continue to be below today’s level, with a decline of -66.86% in 2020, eventually reaching HK$8.64B in 2021.
Although it is informative knowing the growth rate each year relative to today’s level, it may be more insightful determining the rate at which the company is rising or falling on average every year. The benefit of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Swire Pacific’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -43.32%. This means that, we can presume Swire Pacific will chip away at a rate of -43.32% every year for the next few years.
Next Steps:
For Swire Pacific, I’ve put together three essential aspects 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.
Valuation: What is 19 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 19 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 19? 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.
