Yahoo Finance Bovis Homes Group PLC (LON:BVS): What Does The Future Look Like?
In December 2018, Bovis Homes Group PLC (LON:BVS) announced its earnings update. Overall, analysts seem fairly confident, with profits predicted to increase by 11% next year compared with the past 5-year average growth rate of 5.9%. Currently with trailing-twelve-month earnings of UK£137m, we can expect this to reach UK£152m by 2020. Below is a brief commentary around Bovis Homes Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Bovis Homes Group
Exciting times ahead?
The longer term expectations from the 10 analysts of BVS is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for BVS, 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, BVS's earnings should reach UK£173m, from current levels of UK£137m, resulting in an annual growth rate of 8.2%. This leads to an EPS of £1.26 in the final year of projections relative to the current EPS of £1.02. With a current profit margin of 13%, this movement will result in a margin of 15% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Bovis Homes Group, I've put together three relevant factors you should further examine:
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 Bovis Homes Group 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 Bovis Homes Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bovis Homes Group? 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.
