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The most recent earnings announcement Minsheng Education Group Company Limited's (HKG:1569) released in April 2019 revealed that the business experienced a robust tailwind, leading to a double-digit earnings growth of 28%. Below, I've presented key growth figures on how market analysts perceive Minsheng Education Group's earnings growth outlook 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.
Check out our latest analysis for Minsheng Education Group
Analysts' outlook for the coming year seems positive, with earnings expanding by a robust 32%. This growth seems to continue into the following year with rates arriving at double digit 56% compared to today’s earnings, and finally hitting CN¥602m by 2022.
Even though it’s helpful to be aware of the rate of growth each year relative to today’s level, it may be more valuable to gauge the rate at which the business is rising or falling every year, on average. The benefit of this approach is that we can get a better picture of the direction of Minsheng Education Group'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 19%. This means, we can anticipate Minsheng Education Group will grow its earnings by 19% every year for the next few years.
Next Steps:
For Minsheng Education Group, I've put together three key aspects 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 1569 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 1569 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 1569? 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.