Looking at Carlsberg A/S’s (CPH:CARL B) earnings update in December 2018, analysts seem cautiously optimistic, as a 8.6% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -8.2%. Currently with trailing-twelve-month earnings of ø5.3b, we can expect this to reach ø5.8b by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How is Carlsberg going to perform in the near future?
Over the next three years, it seems the consensus view of the 21 analysts covering CARL B is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for CARL B, 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.
This results in an annual growth rate of 7.5% based on the most recent earnings level of ø5.3b to the final forecast of ø6.6b by 2022. This leads to an EPS of DKK47.3 in the final year of projections relative to the current EPS of DKK34.83. Margins are currently sitting at 8.5%, which is expected to expand to 9.5% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Carlsberg, there are three key 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 Carlsberg 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 Carlsberg is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Carlsberg? 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.