Looking at Bâloise Holding AG’s (VTX:BALN) earnings update in December 2018, analysts seem cautiously optimistic, as a 27% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -1.4%. Currently with trailing-twelve-month earnings of CHF523m, we can expect this to reach CHF665m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How is Bâloise Holding going to perform in the near future?
The 7 analysts covering BALN view its longer term outlook with a positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BALN’s earnings growth over these next few years.
This results in an annual growth rate of 7.3% based on the most recent earnings level of CHF523m to the final forecast of CHF695m by 2022. EPS reaches CHF15.21 in the final year of forecast compared to the current CHF11.14 EPS today. Margins are currently sitting at 7.4%, which is expected to expand to 9.7% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Bâloise Holding, I’ve put together three important 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 Bâloise Holding 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 Bâloise Holding is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bâloise Holding? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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