In December 2017, IGG Inc (SEHK:799) released its latest earnings announcement, which showed that the business gained from a major tailwind, more than doubling its earnings from the prior year. Below, I’ve presented key growth figures on how market analysts perceive IGG’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for IGG

Analysts’ outlook for the upcoming year seems buoyant, with earnings growing by a robust 42.61%. This growth seems to continue into the following year with rates reaching double digit 57.06% compared to today’s earnings and falls to US$222.70M by 2021.

While it is useful to understand the growth rate each year relative to today’s value, it may be more beneficial evaluating the rate at which the business is rising or falling every year, on average. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of IGG’s earnings trajectory over time, fluctuate up and down. 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 11.93%. This means, we can expect IGG will grow its earnings by 11.93% every year for the next few years.

Next Steps:

For IGG, I’ve put together three pertinent aspects you should further examine:

1. 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.

2. Valuation: What is 799 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 799 is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 799? 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.