In December 2018, Bollore (EPA:BOL) released its earnings update. Generally, analysts seem highly optimistic, as a 88% rise in profits is expected in the upcoming year, against the previous 5-year average growth rate of 9.9%. By 2020, we can expect Bollore’s bottom line to reach €442m, a jump from the current trailing-twelve-month of €235m. Below is a brief commentary on the longer term outlook the market has for Bollore. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How is Bollore going to perform in the near future?
The longer term expectations from the 6 analysts of BOL is tilted towards the 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 reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
This results in an annual growth rate of 25% based on the most recent earnings level of €235m to the final forecast of €557m by 2022. This leads to an EPS of €0.12 in the final year of projections relative to the current EPS of €0.081. In 2022, BOL's profit margin will have expanded from 1.0% to 2.2%.
Future outlook is only one aspect when you're building an investment case for a stock. For Bollore, I've put together three essential 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 Bollore 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 Bollore is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bollore? 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.