U.S. Markets closed

How Do Analysts See China Yuchai International Limited (NYSE:CYD) Performing Over The Next Year?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Looking at China Yuchai International Limited's (NYSE:CYD) earnings update on 31 December 2018, analyst forecasts seem fairly subdued, with profits predicted to rise by 0.5% next year compared with the higher past 5-year average growth rate of 6.0%. With trailing-twelve-month net income at current levels of CN¥695m, we should see this rise to CN¥699m in 2020. Below is a brief commentary on the longer term outlook the market has for China Yuchai International. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

View our latest analysis for China Yuchai International

How is China Yuchai International going to perform in the near future?

The view from 3 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of CYD's earnings growth over these next few years.

NYSE:CYD Past and Future Earnings, May 3rd 2019

By 2022, CYD's earnings should reach CN¥777m, from current levels of CN¥695m, resulting in an annual growth rate of 9.6%. This leads to an EPS of CN¥19.06 in the final year of projections relative to the current EPS of CN¥17.02. Margins are currently sitting at 4.3%, approximately the same as previous years. With analysts forecasting revenue growth of 0.12735 and CYD's net income growth expected to roughly track that, this company may add value for shareholders over time.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For China Yuchai International, there are three essential 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 China Yuchai International 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 China Yuchai International is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of China Yuchai International? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.