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Since National Beverage Corp. (NASDAQ:FIZZ) released its earnings in January 2019, analyst consensus outlook seem bearish, with profits predicted to drop by 1.7% next year relative to the past 5-year average growth rate of 31%. Presently, with latest-twelve-month earnings at US$150m, we should see this fall to US$147m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Exciting times ahead?
The longer term expectations from the 4 analysts of FIZZ is tilted towards the negative sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of FIZZ's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of -13% based on the most recent earnings level of US$150m to the final forecast of US$102m by 2022. EPS reaches $2.28 in the final year of forecast compared to the current $3.21 EPS today. The primary reason for earnings contraction is due to a falling top-line, with negative growth of -2.3%. Furthermore, the current 15% margin is expected to contract to 11% by the end of 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For National Beverage, there are three fundamental aspects 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 National Beverage 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 National Beverage is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of National Beverage? 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.