In December 2017, China Merchants Port Holdings Company Limited (HKG:144) released its most recent earnings announcement, which signalled that the company experienced a slight tailwind, leading to a single-digit earnings growth of 9.72%. Below, I’ve presented key growth figures on how market analysts view China Merchants Port Holdings’s earnings growth outlook over the next few 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.
Market analysts’ consensus outlook for the coming year seems positive, with earnings rising by a robust 27.91%. However, the following year seems to show a contrast, with earnings declining by -1.71%. This volatility continues into the final year of forecast, with earnings arriving at HK$6.48b.
While it is useful to be aware of the rate of growth year by year relative to today’s level, it may be more insightful analyzing the rate at which the earnings are growing on average every year. The pro of this method is that we can get a better picture of the direction of China Merchants Port Holdings’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I’ve inserted 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 -0.80%. This means, we can presume China Merchants Port Holdings will chip away at a rate of -0.80% every year for the next couple of years.
For China Merchants Port Holdings, 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 144 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 144 is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 144? 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 firstname.lastname@example.org.