What Do Analysts Think About Swiss Life Holding AG's (VTX:SLHN) Future?
In December 2018, Swiss Life Holding AG (VTX:SLHN) released its earnings update. Generally, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 13% next year relative to the past 5-year average growth rate of 6.8%. With trailing-twelve-month net income at current levels of CHF1.1b, we should see this rise to CHF1.2b in 2020. 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.
Check out our latest analysis for Swiss Life Holding
Can we expect Swiss Life Holding to keep growing?
The longer term view from the 6 analysts covering SLHN is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. 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.
By 2022, SLHN's earnings should reach CHF1.3b, from current levels of CHF1.1b, resulting in an annual growth rate of 5.0%. This leads to an EPS of CHF38.88 in the final year of projections relative to the current EPS of CHF31.59. Margins are currently sitting at 5.4%, which is expected to expand to 6.1% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Swiss Life Holding, I've compiled three relevant aspects 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 Swiss Life 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 Swiss Life Holding is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Swiss Life 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.
