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LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC): Poised For Long Term Success?

Simply Wall St

In December 2018, LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) released its earnings update. Generally, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 16% next year relative to the past 5-year average growth rate of 8.1%. With trailing-twelve-month net income at current levels of €6.4b, we should see this rise to €7.4b in 2020. Below is a brief commentary on the longer term outlook the market has for LVMH Moët Hennessy - Louis Vuitton Société Européenne. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne

How will LVMH Moët Hennessy - Louis Vuitton Société Européenne perform in the near future?

The longer term view from the 26 analysts covering MC is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for MC, 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.

ENXTPA:MC Past and Future Earnings, July 24th 2019

From the current net income level of €6.4b and the final forecast of €8.7b by 2022, the annual rate of growth for MC’s earnings is 9.7%. This leads to an EPS of €17.3 in the final year of projections relative to the current EPS of €12.64. Margins are currently sitting at 14%, which is expected to expand to 15% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For LVMH Moët Hennessy - Louis Vuitton Société Européenne, I've compiled three important factors you should further research:

  1. 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.
  2. Valuation: What is LVMH Moët Hennessy - Louis Vuitton Société Européenne 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 LVMH Moët Hennessy - Louis Vuitton Société Européenne is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of LVMH Moët Hennessy - Louis Vuitton Société Européenne? 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 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.