What Do Analysts Think About Roche Holding AG's (VTX:ROG) Growth?
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Looking at Roche Holding AG's (VTX:ROG) earnings update in December 2018, analysts seem fairly confident, with profits predicted to increase by 35% next year against the past 5-year average growth rate of -0.8%. By 2020, we can expect Roche Holding’s bottom line to reach CHF14b, a jump from the current trailing-twelve-month of CHF11b. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Roche Holding
What can we expect from Roche Holding in the longer term?
Longer term expectations from the 19 analysts covering ROG’s stock is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of ROG's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, ROG's earnings should reach CHF15b, from current levels of CHF11b, resulting in an annual growth rate of 9.9%. This leads to an EPS of CHF17.31 in the final year of projections relative to the current EPS of CHF12.3. In 2022, ROG's profit margin will have expanded from 18% to 24%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Roche Holding, I've put together three pertinent factors you should look at:
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 Roche Holding 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 Roche Holding is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Roche Holding? 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.
