Analysts’ outlook for the coming year seems pessimistic, with earnings becoming even more negative, generating -CHF49.85M in 2019. Moreover, earnings are predicted to fall off in the following year, declining to -CHF56.20M in 2020 and -CHF98.18M in 2021.
Although it is useful to understand the growth year by year relative to today’s value, it may be more beneficial to analyze the rate at which the earnings are moving on average every year. The pro of this method is that we can get a bigger picture of the direction of AC Immune’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 0.85%. This means that, we can anticipate AC Immune will grow its earnings by 0.85% every year for the next couple of years.
For AC Immune, there are three relevant factors you should look at:
- 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.
- Future Earnings: How does ACIU’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ACIU? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!