In December 2017, Crown Holdings Inc (NYSE:CCK) announced its latest earnings update, which showed that the company experienced a substantial headwind with earnings deteriorating by -34.88%. Below, I’ve presented key growth figures on how market analysts perceive Crown Holdings’s earnings growth outlook over the next few years and whether the future looks brighter. 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 Crown Holdings
Analysts’ expectations for the coming year seems buoyant, with earnings rising by a significant 95.30%. Earnings are predicted to shoot up to around US$672.88M in the following year before plateauing, heading into 2021.
Although it’s useful to understand the growth year by year relative to today’s level, it may be more valuable to determine the rate at which the earnings are rising or falling every year, on average. The pro of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Crown Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 23.30%. This means, we can expect Crown Holdings will grow its earnings by 23.30% every year for the next few years.
For Crown Holdings, I’ve compiled three fundamental 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 CCK 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 CCK is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CCK? 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.