Baozun Inc (BZUN): What Are The Future Prospects?
Based on the latest analyst prediction, Baozun Inc (NASDAQ:BZUN) is estimated to optimistically grow its earnings by over 300% in the upcoming three years. Presently, with an EPS of CN¥2.338, we can expect an upcoming EPS of CN¥11.963. I am going to look at the latest data on BZUN to assess whether this expected growth is reasonable. View our latest analysis for Baozun
What can we expect from Baozun Inc (NASDAQ:BZUN) in the future?
One reason why investors are attracted to BZUN is the high growth potential in the near future. Expectations from 7 analysts are high, with earnings per share forecasted to rise significantly from todays level of CN¥2.338 to more than double over the next couple of years. During the same time we will see the revenue rapidly grow from CN¥3,715M to CN¥7,095M and profits (net income) are predicted to catapult from CN¥121M to CN¥621M in the next couple of years, more than doubling from the most recent level. Furthermore, margins are on track to be a respectable 10.82% in the future.
Is this similar growth to the past?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. BZUN’s triple-digit earnings growth the past couple of years indicates that the company’s past performance is supportive of a strong continuation. This means BZUN has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For BZUN, there are three fundamental factors you should further research:
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 BZUN 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 BZUN is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of BZUN? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
