Biogen Inc (BIIB): Immense Growth Potential?

Declan Brown
Updated

Biogen Inc (NASDAQ:BIIB)’s sound earnings growth per share is expected to be a double-digit 43.43% over the next three years. Presently, with an EPS of $16.296, we can expect an upcoming EPS of $23.374. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. See our latest analysis for BIIB

What can we expect from Biogen Inc (NASDAQ:BIIB) in the future?

BIIB is covered by 28 analysts who by consensus are expecting earnings to increase from today’s level of $16.296 to $23.374 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 43.43% over the next few years, which is an optimistic outlook in the near term. In the same period revenue is predicted to increase from $11,839M to $13,504M and profits (net income) are predicted to slightly grow from $3,486M to $5,000M in the next couple of years, growing by 43.43%. At this level of revenue and profit, margins are predicted to be extremely healthy as well.

NasdaqGS:BIIB Past Future Earnings Nov 24th 17
NasdaqGS:BIIB Past Future Earnings Nov 24th 17

Basis for the growth

The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. BIIB’s triple-digit earnings growth the past couple of years indicates that the company’s past performance will continue to persist into the future. This means BIIB has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.

Next Steps:

For BIIB, I’ve put together three pertinent aspects you should further examine:

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 BIIB 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 BIIB is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of BIIB? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.