Yahoo Finance What Do Analysts Think About Boiron SA's (EPA:BOI) Future?
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Since Boiron SA (EPA:BOI) released its earnings in December 2018, it seems that analyst forecasts are fairly pessimistic, as a 7.7% fall in profits is expected in the upcoming year. However, this pessimism is not unfounded, given the negative earnings growth rate over the past five years on average. With trailing-twelve-month net income at current levels of €57m, the consensus growth rate suggests that earnings will decline to €53m by 2020. Below is a brief commentary on the longer term outlook the market has for Boiron. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Boiron
What can we expect from Boiron in the longer term?
The longer term view from the 4 analysts covering BOI is one of negative 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 BOI, 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, BOI's earnings should reach €38m, from current levels of €57m, resulting in an annual growth rate of -14%. EPS reaches €2.15 in the final year of forecast compared to the current €3.23 EPS today. Earnings decline appears to be a result of a falling top-line, with negative growth of -3.7%. By 2022, margins are projected to decline from 9.5% to 7.2% as a result in a faster fall in profits.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Boiron, there are three fundamental factors 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 Boiron 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 Boiron is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Boiron? 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.
