U.S. Markets closed

Boral Limited (ASX:BLD): Poised For Long Term Success?

Simply Wall St

Based on Boral Limited's (ASX:BLD) earnings update in December 2018, analyst consensus outlook appear cautiously subdued, with profits predicted to rise by 1.0% next year against the higher past 5-year average growth rate of 33%. By 2020, we can expect Boral’s bottom line to reach AU$435m, a jump from the current trailing-twelve-month of AU$431m. 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 Boral

What can we expect from Boral in the longer term?

The longer term expectations from the 9 analysts of BLD is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of BLD'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.

ASX:BLD Past and Future Earnings, August 19th 2019

By 2022, BLD's earnings should reach AU$497m, from current levels of AU$431m, resulting in an annual growth rate of 6.8%. EPS reaches A$0.43 in the final year of forecast compared to the current A$0.37 EPS today. With a current profit margin of 7.5%, this movement will result in a margin of 8.2% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Boral, I've put together three pertinent aspects 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 Boral 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 Boral is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Boral? 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.