After Coca-Cola FEMSA, S.A.B. de C.V.'s ( NYSE:KOF ) earnings announcement on 30 June 2019, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 24% in the upcoming year relative to the past 5-year average growth rate of -25%. Presently, with latest-twelve-month earnings at Mex$11b, we should see this growing to Mex$14b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Coca-Cola FEMSA. de in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here .
What can we expect from Coca-Cola FEMSA. de in the longer term?
The view from 16 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of KOF's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 11% based on the most recent earnings level of Mex$11b to the final forecast of Mex$18b by 2022. This leads to an EPS of MX$85.92 in the final year of projections relative to the current EPS of MX$52.05. Margins are currently sitting at 6.0%, which is expected to expand to 8.0% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Coca-Cola FEMSA. de, I've compiled three pertinent aspects you should look at:
- 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 FEMSA. de 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 FEMSA. de is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Coca-Cola FEMSA. de? 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 email@example.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.