As Bâloise Holding AG (VTX:BALN) released its earnings announcement on 31 December 2018, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 16% in the upcoming year compared with the past 5-year average growth rate of -1.4%. Currently with trailing-twelve-month earnings of CHF523m, we can expect this to reach CHF605m by 2020. Below is a brief commentary on the longer term outlook the market has for Bâloise Holding. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How will Bâloise Holding perform in the near future?
The view from 7 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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.
By 2022, BALN’s earnings should reach CHF682m, from current levels of CHF523m, resulting in an annual growth rate of 8.7%. This leads to an EPS of CHF15.43 in the final year of projections relative to the current EPS of CHF11.14. With a current profit margin of 7.4%, this movement will result in a margin of 9.6% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Bâloise Holding, there are three pertinent 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!
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 firstname.lastname@example.org. 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.