What Are Analysts Saying About The Future Of Molson Coors Brewing Company's (NYSE:TAP)?
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Looking at Molson Coors Brewing Company's (NYSE:TAP) earnings update in March 2019, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 3.5% next year against the higher past 5-year average growth rate of 27%. Presently, with latest-twelve-month earnings at US$1.1b, we should see this growing to US$1.2b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Molson Coors Brewing in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Molson Coors Brewing
How is Molson Coors Brewing going to perform in the near future?
Over the next three years, it seems the consensus view of the 14 analysts covering TAP is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for TAP, 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.
From the current net income level of US$1.1b and the final forecast of US$1.2b by 2022, the annual rate of growth for TAP’s earnings is 1.2%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of $4.9 in the final year of forecast compared to the current $5.17 EPS today. Margins are currently sitting at 10%, which is expected to expand to 11% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Molson Coors Brewing, I've compiled three essential aspects you should further research:
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 Molson Coors Brewing 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 Molson Coors Brewing is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Molson Coors Brewing? 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.
