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Mettler-Toledo International Inc. (NYSE:MTD): Will The Growth Last?

Jodi Pearce

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After Mettler-Toledo International Inc.’s (NYSE:MTD) earnings announcement on 31 December 2018, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 8.2% next year compared with the past 5-year average growth rate of 7.2%. By 2020, we can expect Mettler-Toledo International’s bottom line to reach US$555m, a jump from the current trailing-twelve-month of US$513m. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Mettler-Toledo International in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

Check out our latest analysis for Mettler-Toledo International

What can we expect from Mettler-Toledo International in the longer term?

The 12 analysts covering MTD view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of MTD’s earnings growth over these next few years.

NYSE:MTD Future Profit February 12th 19

This results in an annual growth rate of 8.2% based on the most recent earnings level of US$513m to the final forecast of US$657m by 2022. This leads to an EPS of $28.04 in the final year of projections relative to the current EPS of $20.33. Margins are currently sitting at 17%, which is expected to expand to 20% by 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Mettler-Toledo International, there are three pertinent factors you should further examine:

  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 Mettler-Toledo International 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 Mettler-Toledo International is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Mettler-Toledo International? 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 editorial-team@simplywallst.com.