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Since Bijou Brigitte modische Accessoires Aktiengesellschaft (FRA:BIJ) released its earnings in December 2018, analyst consensus outlook seem bearish, with earnings expected to decline by 12% in the upcoming year. Though this pessimism is not unfounded, given the 5-year track record of negative growth. Presently, with latest-twelve-month earnings at €22m, we should see this fall to €19m by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Bijou Brigitte modische Accessoires in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Bijou Brigitte modische Accessoires
Exciting times ahead?
The longer term view from the 1 analysts covering BIJ is one of negative sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for BIJ, 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.
By 2022, BIJ's earnings should reach €20m, from current levels of €22m, resulting in an annual growth rate of -1.8%. This leads to an EPS of €2.54 in the final year of projections relative to the current EPS of €2.74. The bottom-line decline seems to be caused by top-line expansion of 0.8%, which is predicted to lag cost growth leading up to 2022. With this high cost growth, margins is expected to contract from 6.7% to 6.1% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Bijou Brigitte modische Accessoires, I've compiled three relevant aspects you should further examine:
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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.
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Valuation: What is Bijou Brigitte modische Accessoires 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 Bijou Brigitte modische Accessoires is currently mispriced by the market.
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Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bijou Brigitte modische Accessoires? 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.