Yahoo Finance Cranswick plc (LON:CWK): Immense Growth Potential?
After Cranswick plc's (LON:CWK) earnings announcement in September 2018, analyst forecasts seem fairly subdued, as a 0.05% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 13%. With trailing-twelve-month net income at current levels of UK£70m, we should see this rise to UK£70m in 2020. Below is a brief commentary on the longer term outlook the market has for Cranswick. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Cranswick
How will Cranswick perform in the near future?
The view from 8 analysts over the next three years 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. 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 CWK's earnings growth over these next few years.
This results in an annual growth rate of 7.5% based on the most recent earnings level of UK£70m to the final forecast of UK£85m by 2022. EPS reaches £1.52 in the final year of forecast compared to the current £1.38 EPS today. Margins are currently sitting at 4.8%, which is expected to expand to 5.1% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Cranswick, there are three pertinent 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 Cranswick 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 Cranswick is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Cranswick? 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.
