What Should We Expect From Rémy Cointreau SA’s (EPA:RCO) Earnings Over The Next Few Years?

The latest earnings announcement Rémy Cointreau SA (EPA:RCO) released in March 2018 revealed that the company benefited from a strong tailwind, leading to a double-digit earnings growth of 18.28%. Below, I’ve presented key growth figures on how market analysts view Rémy Cointreau’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View out our latest analysis for Rémy Cointreau

Market analysts’ prospects for next year seems optimistic, with earnings growing by a robust 13.41%. This growth seems to continue into the following year with rates reaching double digit 29.04% compared to today’s earnings, and finally hitting €213.27m by 2021.

ENXTPA:RCO Future Profit June 25th 18
ENXTPA:RCO Future Profit June 25th 18

While it’s informative understanding the growth rate year by year relative to today’s value, it may be more beneficial to estimate the rate at which the company is growing on average every year. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Rémy Cointreau’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted 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 10.83%. This means that, we can expect Rémy Cointreau will grow its earnings by 10.83% every year for the next few years.

Next Steps:

For Rémy Cointreau, there are three fundamental factors you should further examine:

  1. 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.
  2. Valuation: What is RCO 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 RCO is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of RCO? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!