What Should We Expect From Regina Miracle International (Holdings) Limited's (HKG:2199) Earnings In The Years Ahead?
The most recent earnings release Regina Miracle International (Holdings) Limited's (HKG:2199) announced in July 2019 revealed that the business benefited from a strong tailwind, leading to a double-digit earnings growth of 18%. Below, I've laid out key numbers on how market analysts view Regina Miracle International (Holdings)'s earnings growth trajectory over the next few 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 Regina Miracle International (Holdings)
Market analysts' consensus outlook for the upcoming year seems optimistic, with earnings growing by a robust 39%. This growth seems to continue into the following year with rates arriving at double digit 85% compared to today’s earnings, and finally hitting HK$708m by 2022.
Even though it is informative knowing the growth rate year by year relative to today’s figure, it may be more insightful to determine the rate at which the company is moving every year, on average. The pro of this method is that it ignores near term flucuations and accounts for the overarching direction of Regina Miracle International (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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 29%. This means, we can presume Regina Miracle International (Holdings) will grow its earnings by 29% every year for the next couple of years.
Next Steps:
For Regina Miracle International (Holdings), I've compiled three pertinent aspects you should look at:
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 2199 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 2199 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2199? 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.
