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Boule Diagnostics AB (publ)'s (STO:BOUL) most recent earnings announcement in December 2018 showed that the company gained from a robust tailwind, leading to a double-digit earnings growth of 10%. Today I want to provide a brief commentary on how market analysts predict Boule Diagnostics's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
Market analysts' prospects for the coming year seems buoyant, with earnings rising by a robust 32%. This growth seems to continue into the following year with rates arriving at double digit 51% compared to today’s earnings, and finally hitting kr69m by 2022.
Although it’s informative understanding the growth each year relative to today’s value, it may be more insightful evaluating the rate at which the earnings are rising or falling every year, on average. The pro of this method is that we can get a bigger picture of the direction of Boule Diagnostics's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. 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 16%. This means, we can expect Boule Diagnostics will grow its earnings by 16% every year for the next few years.
For Boule Diagnostics, I've compiled 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 BOUL 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 BOUL is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BOUL? 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 firstname.lastname@example.org. 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.