51job Inc (NASDAQ:JOBS) is expected to deliver a whopping 105.51% in earnings growth per share over the next three years. With the recent EPS being $9.243, expected growth will push the upcoming EPS to $18.996. I am going to look at the latest data on JOBS to assess whether this expected growth is reasonable. Check out our latest analysis for 51job
How is JOBS going to perform in the future?
The excitement around 51job’s growth potential is not unfounded. Expectation from 3 analysts is certainly positive, with earnings estimated to shoot up from current levels of $9.243 to $18.996 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 105.51% over the next few years. In the same period and net income is predicted to shoot from $545M to $1,120M in the next couple of years, more than doubling from the most recent level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
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 sustainable and whether the company continues to go from strength to strength. JOBS’s earnings growth the past couple of years was 44.05% which indicates that the company’s past performance will continue to persist into the future. This means JOBS has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
For JOBS, there are three key aspects you should further examine:
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 JOBS 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 JOBS is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of JOBS? 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.