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How Do Analysts See China Biologic Products Holdings Inc (NASDAQ:CBPO) Performing Over The Next Few Years?

Neil Montgomery

In September 2017, China Biologic Products Holdings Inc (NASDAQ:CBPO) announced its latest earnings update, which confirmed that the company gained from a robust tailwind, leading to a double-digit earnings growth of 17.04%. Today I want to provide a brief commentary on how market analysts predict China Biologic Products Holdings’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for China Biologic Products Holdings

Market analysts’ prospects for the upcoming year seems positive, with earnings expanding by a robust 26.45%. This growth seems to continue into the following year with rates reaching double digit 44.72% compared to today’s earnings, and finally hitting $172.6M by 2021.

NasdaqGS:CBPO Future Profit Jan 2nd 18

While it’s useful to understand the growth year by year relative to today’s level, it may be more beneficial to evaluate the rate at which the business is rising or falling every year, on average. The pro of this method is that we can get a bigger picture of the direction of China Biologic Products Holdings’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended 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 14.33%. This means, we can anticipate China Biologic Products Holdings will grow its earnings by 14.33% every year for the next couple of years.

Next Steps:

For China Biologic Products Holdings, I’ve compiled three pertinent factors 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 CBPO 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 CBPO is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CBPO? 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.