What Are Analysts Saying About China New Higher Education Group Limited's (HKG:2001) Earnings Outlook?
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China New Higher Education Group Limited's (HKG:2001) most recent earnings update in December 2018 signalled that the company benefited from a small tailwind, eventuating to a single-digit earnings growth of 3.9%. Below, I've laid out key numbers on how market analysts view China New Higher Education Group's earnings growth trajectory 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 China New Higher Education Group
Analysts' outlook for this coming year seems optimistic, with earnings growing by a robust 49%. This growth seems to continue into the following year with rates reaching double digit 90% compared to today’s earnings, and finally hitting CN¥539m by 2022.
Although it is useful to understand the growth rate each year relative to today’s value, it may be more valuable to determine the rate at which the company is rising or falling on average every year. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of China New Higher Education Group's earnings trajectory over time, which may be more relevant for long term investors. 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 25%. This means, we can assume China New Higher Education Group will grow its earnings by 25% every year for the next few years.
Next Steps:
For China New Higher Education Group, I've compiled three relevant factors 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 2001 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 2001 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2001? 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.
