Yahoo Finance Will Geely Automobile Holdings Limited's (HKG:175) Earnings Grow In The Year Ahead?
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After Geely Automobile Holdings Limited's (HKG:175) earnings announcement on 31 December 2018, the consensus outlook from analysts appear somewhat bearish, as a 4.6% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 45%. By 2020, we can expect Geely Automobile Holdings’s bottom line to reach CN¥13b, a jump from the current trailing-twelve-month of CN¥13b. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Geely Automobile Holdings in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Geely Automobile Holdings
Exciting times ahead?
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. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of 175's earnings growth over these next few years.
From the current net income level of CN¥13b and the final forecast of CN¥16b by 2022, the annual rate of growth for 175’s earnings is 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 put together three important 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 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.
