What Should Investors Know About Bureau Veritas SA's (EPA:BVI) Future?
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Since Bureau Veritas SA (EPA:BVI) released its earnings in December 2018, analysts seem cautiously optimistic, with earnings expected to grow by 18% in the upcoming year compared with the past 5-year average growth rate of 0.3%. With trailing-twelve-month net income at current levels of €333m, we should see this rise to €391m in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those interested in more of an analysis of the company, you can research its fundamentals here.
Check out our latest analysis for Bureau Veritas
Exciting times ahead?
The 17 analysts covering BVI view its longer term outlook with a 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 BVI'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.
By 2022, BVI's earnings should reach €465m, from current levels of €333m, resulting in an annual growth rate of 11%. EPS reaches €1.05 in the final year of forecast compared to the current €0.76 EPS today. In 2022, BVI's profit margin will have expanded from 6.9% to 8.4%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Bureau Veritas, there are three fundamental aspects 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 Bureau Veritas 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 Bureau Veritas is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bureau Veritas? 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.
