Yahoo Finance What Are Analysts Saying About The Future Of Galaxy Entertainment Group Limited’s (HKG:27)?
Galaxy Entertainment Group Limited’s (SEHK:27) most recent earnings update in December 2017 indicated that the business gained from a sizeable tailwind, eventuating to a high double-digit earnings growth of 67.18%. Below, I’ve laid out key growth figures on how market analysts perceive Galaxy Entertainment 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 Galaxy Entertainment Group
Market analysts’ consensus outlook for the coming year seems optimistic, with earnings growing by a robust 28.98%. This growth seems to continue into the following year with rates reaching double digit 36.38% compared to today’s earnings, and finally hitting HK$17.28B by 2021.
While it’s helpful to be aware of the growth year by year relative to today’s value, it may be more beneficial analyzing the rate at which the business is moving every year, on average. The benefit of this method is that we can get a bigger picture of the direction of Galaxy Entertainment Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended 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 12.93%. This means that, we can presume Galaxy Entertainment Group will grow its earnings by 12.93% every year for the next few years.
Next Steps:
For Galaxy Entertainment Group, 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 27 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 27 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 27? 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 pass 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.
