In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
The latest earnings update Bijou Brigitte modische Accessoires Aktiengesellschaft (FRA:BIJ) released in May 2019 indicated that the company endured a minor headwind with earnings falling from €22m to €22m, a change of -0.6%. Below, I've laid out key growth figures on how market analysts predict Bijou Brigitte modische Accessoires's earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for Bijou Brigitte modische Accessoires
Market analysts' consensus outlook for next year seems pessimistic, with earnings reducing by a double-digit -12%. In the following year, earnings begins to improve, arriving at €20m by 2022.
Although it is helpful to understand the rate of growth each year relative to today’s level, it may be more beneficial evaluating the rate at which the earnings are rising or falling every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Bijou Brigitte modische Accessoires's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put 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 -1.8%. This means, we can presume Bijou Brigitte modische Accessoires will chip away at a rate of -1.8% every year for the next couple of years.
Next Steps:
For Bijou Brigitte modische Accessoires, I've put together three important aspects you should further research:
-
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.
-
Valuation: What is BIJ 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 BIJ is currently mispriced by the market.
-
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BIJ? 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.