What Do Analysts Think About The Future Of PICC Property and Casualty Company Limited's (HKG:2328)?
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In December 2018, PICC Property and Casualty Company Limited (HKG:2328) released its latest earnings announcement, which indicated that the business experienced a immense headwind with earnings declining by -22%. Below, I've presented key growth figures on how market analysts predict PICC Property and Casualty's earnings growth outlook over the next few years and whether the future looks brighter. 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.
View our latest analysis for PICC Property and Casualty
Market analysts' consensus outlook for the upcoming year seems buoyant, with earnings rising by a robust 26%. This growth seems to continue into the following year with rates reaching double digit 43% compared to today’s earnings, and finally hitting CN¥24b by 2022.
Even though it is informative knowing the growth year by year relative to today’s value, it may be more valuable determining the rate at which the business is growing every year, on average. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of PICC Property and Casualty's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 13%. This means, we can expect PICC Property and Casualty will grow its earnings by 13% every year for the next few years.
Next Steps:
For PICC Property and Casualty, I've put together three relevant factors you should look at:
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 2328 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 2328 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2328? 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.
