Market analysts’ prospects for this coming year seems positive, with earnings increasing by a robust 15.93%. This growth seems to continue into the following year with rates arriving at double digit 39.79% compared to today’s earnings, and finally hitting HK$277.43m by 2021.
Even though it’s informative knowing the growth rate each year relative to today’s figure, it may be more valuable to determine the rate at which the business is rising or falling on average every year. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of FIT Hon Teng’s earnings trajectory over time, which may be more relevant for long term investors. 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 14.78%. This means that, we can expect FIT Hon Teng will grow its earnings by 14.78% every year for the next couple of years.
For FIT Hon Teng, I’ve compiled three relevant aspects you should further research:
- 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.
- Valuation: What is 6088 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 6088 is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 6088? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!