Will Bâloise Holding AG’s (VTX:BALN) Earnings Grow In The Next 12 Months?

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.

View our latest analysis for Bâloise Holding

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.

SWX:BALN Past and Future Earnings, August 6th 2019
SWX:BALN Past and Future Earnings, August 6th 2019

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.

Next Steps:

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:

  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 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.
  3. 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!

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.