Yahoo Finance What Should Investors Know About Croda International Plc's (LON:CRDA) Future?
In December 2018, Croda International Plc (LON:CRDA) announced its earnings update. Overall, analyst consensus outlook seem conservative, with earnings growth rate expected to be 8.9% next year, which is within range of the past five-year average earnings growth of 8.5%. Currently with trailing-twelve-month earnings of UK£239m, we can expect this to reach UK£260m by 2020. Below is a brief commentary on the longer term outlook the market has for Croda International. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
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See our latest analysis for Croda International
What can we expect from Croda International in the longer term?
The 17 analysts covering CRDA view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of 7.1% based on the most recent earnings level of UK£239m to the final forecast of UK£301m by 2022. This leads to an EPS of £2.31 in the final year of projections relative to the current EPS of £1.86. Margins are currently sitting at 17%, which is expected to expand to 19% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Croda International, there are three relevant factors you should further research:
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 Croda 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 Croda International is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Croda 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!
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.
