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In December 2018, Country Garden Services Holdings Company Limited (HKG:6098) announced its latest earnings update, which showed that the company experienced a significant tailwind, more than doubling its earnings from the prior year. Below, I've laid out key growth figures on how market analysts predict Country Garden Services 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 Country Garden Services Holdings
Market analysts' prospects for the upcoming year seems buoyant, with earnings rising by a robust 34%. This growth seems to continue into the following year with rates reaching double digit 68% compared to today’s earnings, and finally hitting CN¥2.0b by 2022.
While it is useful to understand the growth each year relative to today’s value, it may be more valuable to gauge the rate at which the business is rising or falling on average every year. The advantage of this method is that we can get a better picture of the direction of Country Garden Services Holdings'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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 24%. This means, we can expect Country Garden Services Holdings will grow its earnings by 24% every year for the next few years.
Next Steps:
For Country Garden Services Holdings, I've put together three fundamental factors you should further examine:
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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 6098 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 6098 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 6098? 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.