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In December 2018, Vinda International Holdings Limited (HKG:3331) announced its latest earnings update, which signalled that the company benefited from a slight tailwind, leading to a single-digit earnings growth of 4.6%. Below, I've laid out key numbers on how market analysts predict Vinda International Holdings's earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Vinda International Holdings
Analysts' outlook for the coming year seems optimistic, with earnings increasing by a robust 27%. This growth seems to continue into the following year with rates reaching double digit 52% compared to today’s earnings, and finally hitting HK$1.1b by 2022.
Even though it’s useful to understand the rate of growth year by year relative to today’s figure, it may be more beneficial to analyze the rate at which the business is growing every year, on average. The pro of this approach is that we can get a better picture of the direction of Vinda International Holdings's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 18%. This means that, we can presume Vinda International Holdings will grow its earnings by 18% every year for the next couple of years.
Next Steps:
For Vinda International Holdings, I've compiled three pertinent 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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Valuation: What is 3331 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 3331 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 3331? 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.