China Biologic Products Holdings Inc (NASDAQ:CBPO) is expected to deliver a solid 16.97% in earnings growth per share over the next year. At a current EPS of $4.002, this growth rate means shareholders can expect an impending EPS of $4.681. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for CBPO
Can we expect CBPO to keep growing?
CBPO is covered by 9 analysts who by consensus are expecting earnings to increase from today;s level of $4.002 to $4.681 over the next year. This indicates a relatively solid earnings per share growth rate of 16.97% over the next 1-2 years, which is an optimistic outlook in the near term. In the same period we will see the revenue increase from $358M $415M and profit is predicted to escalate from $109M to $139M in upcoming year, roughly growing 1.3x. However, at this level of revenue and earnings, margins are expected to be extremely healthy.
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 excessive or whether the company continues to go from strength to strength. CBPO’s earnings growth last year was a weaker rate of 8.05%, indicating a relatively more bullish outlook for the company in the near future. This belief may be supported by turnaround initiatives or previous investments coming to fruition.
For CBPO, I’ve put together three important aspects you should further research:
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.