U.S. Markets closed

What Do Analysts Think About AirBoss of America Corp.’s (TSE:BOS) Long Term Outlook?

Simply Wall St

The latest earnings release AirBoss of America Corp.’s (TSE:BOS) announced in December 2018 suggested that the company endured a significant headwind with earnings declining by -32%. Below, I’ve presented key growth figures on how market analysts predict AirBoss of America’s earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

View our latest analysis for AirBoss of America

Market analysts’ consensus outlook for the upcoming year seems optimistic, with earnings expanding by a significant 80%. This strong growth in earnings is expected to continue, bringing the bottom line up to US$22m by 2022.

TSX:BOS Past and Future Earnings, March 16th 2019

While it is helpful to be aware of the rate of growth year by year relative to today’s level, it may be more insightful evaluating the rate at which the earnings are moving on average every year. The pro of this method is that we can get a better picture of the direction of AirBoss of America’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute 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 30%. This means, we can assume AirBoss of America will grow its earnings by 30% every year for the next few years.

Next Steps:

For AirBoss of America, I’ve compiled three key factors you should further examine:

  1. 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.
  2. Valuation: What is BOS 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 BOS is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BOS? 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.