In This Article:
Since Rémy Cointreau SA (EPA:RCO) released its earnings in March 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 11% next year against the past 5-year average growth rate of 8.7%. Currently with trailing-twelve-month earnings of €148m, we can expect this to reach €165m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Rémy Cointreau in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for Rémy Cointreau
Can we expect Rémy Cointreau to keep growing?
The 20 analysts covering RCO view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2021, RCO’s earnings should reach €218m, from current levels of €148m, resulting in an annual growth rate of 12%. EPS reaches €4.3 in the final year of forecast compared to the current €2.98 EPS today. Earnings growth appears to be a result of cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 13%, which is expected to expand to 16% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Rémy Cointreau, there are three pertinent aspects you should further research:
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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.
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Valuation: What is Rémy Cointreau 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 Rémy Cointreau is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Rémy Cointreau? 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.