Massimo Zanetti Beverage Group S.p.A. (BIT:MZB): What Can We Expect From This High Growth Stock?

In December 2018, Massimo Zanetti Beverage Group S.p.A. (BIT:MZB) released its latest earnings announcement, which indicated that the business experienced a strong tailwind, eventuating to a double-digit earnings growth of 10%. Below, I've presented key growth figures on how market analysts perceive Massimo Zanetti Beverage Group's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.

See our latest analysis for Massimo Zanetti Beverage Group

Analysts' expectations for this coming year seems pessimistic, with earnings falling by -0.2%. But in the following year, there is a complete contrast in performance, with reaching double digit 6.0% compared to today’s level and continues to increase to €21m in 2022.

Although it is useful to understand the rate of growth year by year relative to today’s figure, it may be more insightful estimating the rate at which the earnings are growing on average every year. The advantage of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Massimo Zanetti Beverage Group's earnings trajectory over time, which may be more relevant for long term investors. To compute 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 2.9%. This means that, we can expect Massimo Zanetti Beverage Group will grow its earnings by 2.9% every year for the next few years.

Next Steps:

For Massimo Zanetti Beverage Group, there are three relevant aspects you should look at:

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 MZB 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 MZB is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of MZB? 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.