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In December 2018, Sinofert Holdings Limited (HKG:297) released its most recent earnings announcement, which signalled that the business finally turned profitable after losses on average over the past few years. Investors may find it useful to understand how market analysts perceive Sinofert Holdings's earnings growth outlook over the next couple of years and whether the future looks brighter. 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.
View our latest analysis for Sinofert Holdings
Market analysts' prospects for the upcoming year seems buoyant, with earnings growing by a robust 15%. This growth seems to continue into the following year with rates reaching double digit 24% compared to today’s earnings and falls to CN¥535m by 2022.
While it is informative understanding the growth rate each year relative to today’s value, it may be more beneficial to evaluate the rate at which the company is growing every year, on average. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Sinofert Holdings's earnings trajectory over time, fluctuate up and down. To compute this rate, I've appended 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 5.8%. This means that, we can assume Sinofert Holdings will grow its earnings by 5.8% every year for the next couple of years.
Next Steps:
For Sinofert Holdings, I've compiled three important factors 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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Future Earnings: How does 297's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 297? 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.