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As C&C Group plc (ISE:GCC) released its earnings announcement on 28 February 2019, analysts seem fairly confident, as a 24% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 8.8%. Presently, with latest-twelve-month earnings at €72m, we should see this growing to €90m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for C&C Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Can we expect C&C Group to keep growing?
Longer term expectations from the 5 analysts covering GCC’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of GCC's earnings growth over these next few years.
From the current net income level of €72m and the final forecast of €101m by 2022, the annual rate of growth for GCC’s earnings is 10%. EPS reaches €0.33 in the final year of forecast compared to the current €0.23 EPS today. Margins are currently sitting at 4.6%, which is expected to expand to 5.9% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For C&C Group, 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 C&C Group 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 C&C Group is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of C&C Group? 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 firstname.lastname@example.org. 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.