Looking at Bossard Holding AG’s (VTX:BOSN) earnings update in June 2018, it seems that analyst expectations are fairly bearish, as a 6.7% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 8.9%. With trailing-twelve-month net income at current levels of CHF82m, we should see this rise to CHF88m in 2019. 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.
Check out our latest analysis for Bossard Holding
What can we expect from Bossard Holding in the longer term?
Over the next three years, it seems the consensus view of the 5 analysts covering BOSN is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BOSN’s earnings growth over these next few years.
This results in an annual growth rate of 3.2% based on the most recent earnings level of CHF78m to the final forecast of CHF88m by 2021. This leads to an EPS of CHF12.22 in the final year of projections relative to the current EPS of CHF10.33. Earnings growth appears to be a result of reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. However, the expansion of the current 10.0% margin is not expected to be sustained, as it begins to contract to 9.8% by the end of 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Bossard Holding, I’ve compiled three important factors you should further research:
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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 Bossard Holding 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 Bossard Holding 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 Bossard Holding? 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.