Yahoo Finance What Should You Know About The Future Of Boiron SA's (EPA:BOI)?
In April 2019, Boiron SA (EPA:BOI) released its latest earnings announcement, which confirmed that the company experienced a major headwind with earnings deteriorating by -27%. Investors may find it useful to understand how market analysts perceive Boiron's earnings growth outlook over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Boiron
Market analysts' consensus outlook for next year seems pessimistic, with earnings falling by -5.8%. Over the medium term, earnings should continue to be below today's level, with a decline of -16% in 2021, eventually reaching €48m in 2022.
While it’s helpful to be aware of the rate of growth each year relative to today’s figure, it may be more insightful to estimate the rate at which the earnings are growing every year, on average. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of Boiron's earnings trajectory over time, fluctuate up and down. To calculate this rate, I've appended 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 -9.4%. This means, we can presume Boiron will chip away at a rate of -9.4% every year for the next couple of years.
Next Steps:
For Boiron, I've put together three relevant 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 BOI 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 BOI is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BOI? 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.
