Yahoo Finance How Do Analysts See CK Infrastructure Holdings Limited (HKG:1038) Performing In The Next Couple Of Years?
CK Infrastructure Holdings Limited's (HKG:1038) most recent earnings update in December 2018 suggested that the business benefited from a slight tailwind, leading to a single-digit earnings growth of 1.8%. Investors may find it useful to understand how market analysts view CK Infrastructure Holdings's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for CK Infrastructure Holdings
Analysts' outlook for the upcoming year seems rather muted, with earnings rising by a single digit 9.8%. The growth outlook in the following year seems much more positive with rates arriving at double digit 14% compared to today’s earnings, and finally hitting HK$12b by 2022.
Even though it’s helpful to be aware of the growth year by year relative to today’s level, it may be more beneficial to estimate the rate at which the company is growing on average every year. The advantage of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of CK Infrastructure Holdings's earnings trajectory over time, which may be more relevant for long term investors. To compute 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 5.2%. This means, we can anticipate CK Infrastructure Holdings will grow its earnings by 5.2% every year for the next couple of years.
Next Steps:
For CK Infrastructure Holdings, there are three fundamental aspects you should further examine:
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 1038 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 1038 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1038? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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