Yahoo Finance What Do Analysts Think About The Future Of PZ Cussons Plc's (LON:PZC)?
On 31 May 2019, PZ Cussons Plc (LON:PZC) announced its earnings update. Overall, analysts seem highly optimistic, with earnings expected to grow by a high double-digit of 97% in the upcoming year, against the previous 5-year average growth rate of -14%. Currently with trailing-twelve-month earnings of UK£26m, we can expect this to reach UK£51m by 2020. Below is a brief commentary on the longer term outlook the market has for PZ Cussons. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for PZ Cussons
Exciting times ahead?
Longer term expectations from the 3 analysts covering PZC’s stock is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for PZC, 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.
From the current net income level of UK£26m and the final forecast of UK£63m by 2022, the annual rate of growth for PZC’s earnings is 25%. This leads to an EPS of £0.15 in the final year of projections relative to the current EPS of £0.062. In 2022, PZC's profit margin will have expanded from 3.8% to 8.7%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For PZ Cussons, there are 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 PZ Cussons 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 PZ Cussons is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PZ Cussons? 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.
