In This Article:
In December 2017, Great Wall Motor Company Limited (SEHK:2333) announced its latest earnings update, which indicated that the company endured a substantial headwind with earnings declining by -52.35%. Below, I’ve laid out key numbers on how market analysts view Great Wall Motor’s earnings growth outlook 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. View our latest analysis for Great Wall Motor
Analysts’ outlook for the coming year seems buoyant, with earnings climbing by a significant 50.31%. This high growth in earnings is expected to continue, bringing the bottom line up to CN¥9.28B by 2021.
Although it is useful to be aware of the growth each year relative to today’s value, it may be more valuable analyzing the rate at which the earnings are growing on average every year. The pro of this technique is that we can get a bigger picture of the direction of Great Wall Motor’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 18.30%. This means that, we can anticipate Great Wall Motor will grow its earnings by 18.30% every year for the next few years.
Next Steps:
For Great Wall Motor, I’ve compiled three important aspects you should further research:
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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.
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Valuation: What is 2333 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 2333 is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2333? 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.