What Should You Know About Cousins Properties Incorporated’s (NYSE:CUZ) Growth?
On 31 December 2018, Cousins Properties Incorporated (NYSE:CUZ) announced its earnings update. Overall, analyst consensus outlook appear cautiously subdued, as a 17% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 27%. Presently, with latest-twelve-month earnings at US$79m, we should see this growing to US$93m by 2020. Below is a brief commentary around Cousins Properties’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Cousins Properties
How will Cousins Properties perform in the near future?
The 5 analysts covering CUZ view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, CUZ’s earnings should reach US$91m, from current levels of US$79m, resulting in an annual growth rate of 3.7%. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of $0.18 in the final year of forecast compared to the current $0.19 EPS today. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 16% to 16% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Cousins Properties, I’ve put together three important factors 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 Cousins Properties 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 Cousins Properties is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Cousins Properties? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
