Yahoo Finance Sands China Ltd. (HKG:1928): Is It A Smart Long Term Opportunity?
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Since Sands China Ltd. (HKG:1928) released its earnings in December 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 6.7% next year relative to the past 5-year average growth rate of -9.8%. Presently, with latest-twelve-month earnings at US$1.9b, we should see this growing to US$2.0b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Sands China in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Sands China
How will Sands China perform in the near future?
The view from 20 analysts over the next three years is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for 1928, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, 1928's earnings should reach US$2.7b, from current levels of US$1.9b, resulting in an annual growth rate of 12%. EPS reaches $0.33 in the final year of forecast compared to the current $0.23 EPS today. Margins are currently sitting at 22%, which is expected to expand to 25% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Sands China, there are three essential 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 Sands China 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 Sands China is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Sands China? 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.
