Etn Fr Colruyt NV’s (EBR:COLR) released its most recent earnings update in March 2018, which showed that the company experienced a minor headwind with earnings deteriorating from €382m to €373m, a change of -2.3%. Below, I’ve presented key growth figures on how market analysts view Etn. Fr. Colruyt’s earnings growth outlook over the next couple of 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.
Market analysts’ consensus outlook for the upcoming year seems pessimistic, with earnings decreasing by -3.0%. Beyond this, earnings should continue to be below today’s level, with a fall of -2.7% in 2020, eventually reaching €363m in 2021.
Although it’s useful to be aware of the growth year by year relative to today’s value, it may be more valuable gauging the rate at which the business is growing every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Etn. Fr. Colruyt’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 0.9%. This means, we can presume Etn. Fr. Colruyt will grow its earnings by 0.9% every year for the next couple of years.
For Etn. Fr. Colruyt, I’ve put together three essential factors you should further examine:
- 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 COLR 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 COLR is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of COLR? 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 email@example.com.