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In June 2018, JNBY Design Limited (HKG:3306) announced its latest earnings update, which revealed that the company experienced a robust tailwind, leading to a double-digit earnings growth of 23.8%. Below, I’ve laid out key numbers on how market analysts perceive JNBY Design’s earnings growth trajectory over the next couple of 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.
View our latest analysis for JNBY Design
Analysts’ expectations for the coming year seems buoyant, with earnings climbing by a robust 20.3%. This growth seems to continue into the following year with rates reaching double digit 51.4% compared to today’s earnings, and finally hitting CN¥714.2m by 2021.
While it is helpful to be aware of the growth rate year by year relative to today’s value, it may be more valuable to evaluate the rate at which the company is moving every year, on average. The pro of this method is that we can get a better picture of the direction of JNBY Design’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’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 18.5%. This means that, we can presume JNBY Design will grow its earnings by 18.5% every year for the next couple of years.
Next Steps:
For JNBY Design, I’ve put together three fundamental 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 3306 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 3306 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 3306? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.