What Are Analysts Saying About ENN Energy Holdings Limited's (HKG:2688) Long Term Outlook?
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The most recent earnings update ENN Energy Holdings Limited's (HKG:2688) released in December 2018 confirmed that the business experienced a slight tailwind, eventuating to a single-digit earnings growth of 0.6%. Below, I've laid out key numbers on how market analysts perceive ENN Energy Holdings's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Check out our latest analysis for ENN Energy Holdings
Market analysts' consensus outlook for this coming year seems buoyant, with earnings climbing by a significant 75%. This strong growth in earnings is expected to continue, bringing the bottom line up to CN¥6.7b by 2022.
Even though it’s useful to understand the growth year by year relative to today’s figure, it may be more valuable to analyze the rate at which the earnings are rising or falling on average every year. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of ENN Energy Holdings's earnings trajectory over time, which may be more relevant for long term investors. To compute 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 20%. This means, we can anticipate ENN Energy Holdings will grow its earnings by 20% every year for the next couple of years.
Next Steps:
For ENN Energy Holdings, there are three important factors you should further examine:
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 2688 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 2688 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2688? 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.
