Since AirBoss of America Corp. (TSE:BOS) released its earnings in September 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 30% next year relative to the past 5-year average growth rate of 6.7%. By 2020, we can expect AirBoss of America’s bottom line to reach US$16m, a jump from the current trailing-twelve-month of US$13m. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Can we expect AirBoss of America to keep growing?
The longer term view from the 5 analysts covering BOS is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BOS’s earnings growth over these next few years.
By 2022, BOS’s earnings should reach US$25m, from current levels of US$13m, resulting in an annual growth rate of 27%. This leads to an EPS of $0.93 in the final year of projections relative to the current EPS of $0.55. With a current profit margin of 4.4%, this movement will result in a margin of 7.3% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For AirBoss of America, there are three fundamental factors you should further examine:
- 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 AirBoss of America 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 AirBoss of America is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AirBoss of America? 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 email@example.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.