Will Bâloise Holding AG’s (VTX:BALN) Earnings Grow In The Years Ahead?

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Bâloise Holding AG’s (VTX:BALN) announced its latest earnings update in December 2018, which revealed that the business faced a minor headwind with earnings declining from CHF548m to CHF523m, a change of -4.5%. Below, I’ve laid out key growth figures on how market analysts perceive Bâloise Holding’s earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

Check out our latest analysis for Bâloise Holding

Analysts’ outlook for next year seems positive, with earnings growing by a robust 16%. This growth seems to continue into the following year with rates arriving at double digit 26% compared to today’s earnings, and finally hitting CHF694m by 2022.

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

Even though it is informative understanding the growth year by year relative to today’s figure, it may be more beneficial to analyze the rate at which the business is moving on average every year. The pro of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Bâloise Holding’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 9.6%. This means, we can expect Bâloise Holding will grow its earnings by 9.6% every year for the next few years.

Next Steps:

For Bâloise Holding, I’ve put together three relevant factors you should further research:

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