Yintech Investment Holdings Limited’s (NASDAQ:YIN) most recent earnings announcement in December 2017 revealed that the business endured a significant headwind with earnings declining by -48.35%. Today I want to provide a brief commentary on how market analysts view Yintech Investment Holdings’s earnings growth trajectory over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Yintech Investment Holdings
Market analysts’ consensus outlook for next year seems pessimistic, with earnings reducing by a double-digit -17.41%. However, the next few years seem to illustrate a completely different picture, with expected earnings growth rates reaching double digit 43.76% compared to today’s level and continues to increase.
Even though it is informative knowing the growth each year relative to today’s figure, it may be more valuable determining the rate at which the earnings are rising or falling every year, on average. The advantage of this approach is that we can get a better picture of the direction of Yintech Investment Holdings’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I put 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 25.72%. This means that, we can expect Yintech Investment Holdings will grow its earnings by 25.72% every year for the next couple of years.
For Yintech Investment Holdings, I’ve compiled three relevant factors you should further research:
- 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 YIN 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 YIN is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of YIN? 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.