Julius Baer Group Ltd. (VTX:BAER): What Does The Future Look Like?

In June 2018, Julius Baer Group Ltd. (VTX:BAER) released its earnings update. Generally, analysts seem cautiously bearish, with profits predicted to rise by 3.4% next year relative to the higher past 5-year average growth rate of 30%. With trailing-twelve-month net income at current levels of CHF705m, we should see this rise to CHF729m in 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Julius Baer Group in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

View our latest analysis for Julius Baer Group

What can we expect from Julius Baer Group in the longer term?

Over the next three years, it seems the consensus view of the 18 analysts covering BAER is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. 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.

SWX:BAER Future Profit December 20th 18
SWX:BAER Future Profit December 20th 18

By 2021, BAER’s earnings should reach CHF858m, from current levels of CHF705m, resulting in an annual growth rate of 8.8%. This leads to an EPS of CHF4.42 in the final year of projections relative to the current EPS of CHF3.25. In 2021, BAER’s profit margin will have expanded from 22% to 23%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Julius Baer Group, I’ve compiled three essential 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 Julius Baer Group 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 Julius Baer Group is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Julius Baer Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.