Yahoo Finance What Should Investors Know About Coca-Cola HBC AG's (LON:CCH) Future?
After Coca-Cola HBC AG's (LON:CCH) earnings announcement in December 2018, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 12% next year compared with the higher past 5-year average growth rate of 14%. With trailing-twelve-month net income at current levels of €447m, we should see this rise to €502m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
View our latest analysis for Coca-Cola HBC
How will Coca-Cola HBC perform in the near future?
The 12 analysts covering CCH 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. To get an idea of the overall earnings growth trend for CCH, 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 €447m and the final forecast of €634m by 2022, the annual rate of growth for CCH’s earnings is 10%. EPS reaches €1.72 in the final year of forecast compared to the current €1.22 EPS today. Margins are currently sitting at 6.7%, which is expected to expand to 8.2% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Coca-Cola HBC, I've compiled three key factors 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 Coca-Cola HBC 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 Coca-Cola HBC is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Coca-Cola HBC? 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.
