What Should Investors Know About Repligen Corporation's (NASDAQ:RGEN) Future?

Based on Repligen Corporation's (NASDAQ:RGEN) earnings update in June 2019, analyst forecasts seem fairly subdued, as a 8.4% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 24%. Presently, with latest-twelve-month earnings at US$17m, we should see this growing to US$18m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Repligen

Exciting times ahead?

The longer term expectations from the 8 analysts of RGEN is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for RGEN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

This results in an annual growth rate of 40% based on the most recent earnings level of US$17m to the final forecast of US$41m by 2022. EPS reaches $1.1 in the final year of forecast compared to the current $0.38 EPS today. In 2022, RGEN's profit margin will have expanded from 8.6% to 12%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Repligen, I've put together three essential 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 Repligen 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 Repligen is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Repligen? 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.