Yahoo Finance How Do Analysts See Geely Automobile Holdings Limited (HKG:175) Performing In The Year Ahead?
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As Geely Automobile Holdings Limited (HKG:175) announced its earnings release on 31 December 2018, analyst forecasts seem fairly subdued, with earnings expected to grow by 4.6% in the upcoming year against the higher past 5-year average growth rate of 45%. Presently, with latest-twelve-month earnings at CN¥13b, we should see this growing to CN¥13b by 2020. Below is a brief commentary on the longer term outlook the market has for Geely Automobile Holdings. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Geely Automobile Holdings
Can we expect Geely Automobile Holdings to keep growing?
The view from 30 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. To get an idea of the overall earnings growth trend for 175, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, 175's earnings should reach CN¥16b, from current levels of CN¥13b, resulting in an annual growth rate of 9.3%. EPS reaches CN¥1.79 in the final year of forecast compared to the current CN¥1.4 EPS today. With a current profit margin of 12%, this movement will result in a margin of 13% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Geely Automobile Holdings, I've compiled three pertinent factors 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 Geely Automobile Holdings 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 Geely Automobile Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Geely Automobile Holdings? 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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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.
