Yahoo Finance Miquel y Costas & Miquel, S.A. (BME:MCM): Will The Growth Last?
In March 2019, Miquel y Costas & Miquel, S.A. (BME:MCM) released its earnings update. Generally, analyst forecasts seem fairly subdued, as a 3.8% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 9.8%. With trailing-twelve-month net income at current levels of €37m, we should see this rise to €39m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Miquel y Costas & Miquel in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Miquel y Costas & Miquel
How will Miquel y Costas & Miquel perform in the near future?
The longer term view from the 1 analysts covering MCM is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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 2.8% based on the most recent earnings level of €37m to the final forecast of €40m by 2022. However, if we exclude extraordinary items from net income, we see that earnings is projected to fall over time, resulting in an EPS of €1.27 in the final year of forecast compared to the current €1.29 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 14% to 14% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Miquel y Costas & Miquel, I've compiled three relevant 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 Miquel y Costas & Miquel 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 Miquel y Costas & Miquel is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Miquel y Costas & Miquel? 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.
