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Looking at Uni-President China Holdings Ltd's (HKG:220) earnings update on 31 December 2018, the consensus outlook from analysts appear fairly confident, as a 13% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 8.0%. By 2020, we can expect Uni-President China Holdings’s bottom line to reach CN¥1.2b, a jump from the current trailing-twelve-month of CN¥1.0b. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Uni-President China Holdings in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Uni-President China Holdings
What can we expect from Uni-President China Holdings in the longer term?
Over the next three years, it seems the consensus view of the 22 analysts covering 220 is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of 220's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 11% based on the most recent earnings level of CN¥1.0b to the final forecast of CN¥1.4b by 2022. EPS reaches CN¥0.32 in the final year of forecast compared to the current CN¥0.24 EPS today. With a current profit margin of 4.7%, this movement will result in a margin of 5.7% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Uni-President China Holdings, there are three pertinent factors you should look at:
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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 Uni-President China Holdings 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 Uni-President China Holdings 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 Uni-President China Holdings? 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.