What Are Analysts Expecting From Kerry Properties Limited (HKG:683) In The Years Ahead?
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The latest earnings announcement Kerry Properties Limited (HKG:683) released in December 2018 signalled that the business faced a substantial headwind with earnings falling by -19%. Today I want to provide a brief commentary on how market analysts perceive Kerry Properties's earnings growth trajectory over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for Kerry Properties
Market analysts' prospects for next year seems pessimistic, with earnings decreasing by a double-digit -26%. In the next couple of years, earnings should continue to be below today's level, with a decline of -21% in 2021, eventually reaching HK$5.9b in 2022.
Although it’s informative knowing the growth rate each year relative to today’s value, it may be more insightful evaluating the rate at which the business is rising or falling 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 Kerry Properties's earnings trajectory over time, fluctuate up and down. To calculate this rate, I put 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 -7.5%. This means, we can expect Kerry Properties will chip away at a rate of -7.5% every year for the next couple of years.
Next Steps:
For Kerry Properties, I've compiled three fundamental aspects 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 683 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 683 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 683? 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.