How Do Analysts See CGN New Energy Holdings Co Ltd (HKG:1811) Performing In The Years Ahead?
The latest earnings release CGN New Energy Holdings Co Ltd’s (HKG:1811) announced in December 2017 showed that the business experienced a major headwind with earnings declining by -22.15%. Below, I’ve laid out key numbers on how market analysts view CGN New Energy Holdings’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View out our latest analysis for CGN New Energy Holdings
Analysts’ expectations for the coming year seems optimistic, with earnings growing by a robust 21.76%. This growth seems to continue into the following year with rates reaching double digit 42.23% compared to today’s earnings, and finally hitting HK$106.28m by 2021.
While it is informative knowing the growth rate year by year relative to today’s value, it may be more beneficial to analyze the rate at which the earnings are growing on average every year. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of CGN New Energy Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve inserted 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 17.76%. This means that, we can assume CGN New Energy Holdings will grow its earnings by 17.76% every year for the next few years.
Next Steps:
For CGN New Energy Holdings, I’ve compiled three essential 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 1811 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 1811 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1811? 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.
