What Should Investors Know About Molson Coors Brewing Company’s (NYSE:TAP) Future?
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
The most recent earnings release Molson Coors Brewing Company’s (NYSE:TAP) announced in December 2018 confirmed that the company endured a significant headwind with earnings declining by -29%. Below, I’ve presented key growth figures on how market analysts predict Molson Coors Brewing’s earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for Molson Coors Brewing
Market analysts’ prospects for next year seems pessimistic, with earnings declining by -8.2%. Over the medium term, earnings are predicted to continue to be below today’s level, with a decrease of -5.0% in 2021, eventually reaching US$1.1b in 2022.
Even though it is useful to understand the rate of growth year by year relative to today’s figure, it may be more insightful evaluating the rate at which the company is rising or falling every year, on average. The benefit of this technique is that we can get a better picture of the direction of Molson Coors Brewing’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 0.6%. This means that, we can anticipate Molson Coors Brewing will grow its earnings by 0.6% every year for the next couple of years.
Next Steps:
For Molson Coors Brewing, there are three relevant 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 TAP 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 TAP is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of TAP? 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.
