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What Do Analysts Think About Ctrip.com International, Ltd.'s (NASDAQ:CTRP) Future?

In March 2019, Ctrip.com International, Ltd. (NASDAQ:CTRP) announced its earnings update. Overall, analysts seem cautiously optimistic, with earnings expected to grow by 49% in the upcoming year compared with the past 5-year average growth rate of 35%. Presently, with latest-twelve-month earnings at CN¥1.1b, we should see this growing to CN¥1.7b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Ctrip.com International in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Ctrip.com International

How will Ctrip.com International perform in the near future?

Over the next three years, it seems the consensus view of the 33 analysts covering CTRP is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of CTRP's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NasdaqGS:CTRP Past and Future Earnings, August 29th 2019
NasdaqGS:CTRP Past and Future Earnings, August 29th 2019

By 2022, CTRP's earnings should reach CN¥2.0b, from current levels of CN¥1.1b, resulting in an annual growth rate of 3.3%. EPS reaches CN¥12.55 in the final year of forecast compared to the current CN¥2.03 EPS today. Analysts are predicting earnings growth to outpace revenue by the end of 2022, resulting in a margin expansion from 3.6% to 3.8%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Ctrip.com International, there are three important factors you should look at:

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  1. 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.

  2. Valuation: What is Ctrip.com International 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 Ctrip.com International is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Ctrip.com International? 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.