After Berner Kantonalbank AG’s (VTX:BEKN) earnings announcement in June 2018, the consensus outlook from analysts appear fairly confident, as a 3.1% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 1.1%. Currently with trailing-twelve-month earnings of CHF137m, we can expect this to reach CHF142m by 2019. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Berner Kantonalbank 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 Berner Kantonalbank
Can we expect Berner Kantonalbank to keep growing?
The 1 analysts covering BEKN view its longer term outlook with a 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 BEKN, 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 8.3% based on the most recent earnings level of CHF137m to the final forecast of CHF169m by 2021. EPS reaches CHF17.8 in the final year of forecast compared to the current CHF14.75 EPS today. Margins are currently sitting at 34%, approximately the same as previous years.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Berner Kantonalbank, I’ve put together three essential 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 Berner Kantonalbank 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 Berner Kantonalbank 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 Berner Kantonalbank? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.