Bioceres Crop Solutions' (NASDAQ:BIOX one-year decrease in earnings delivers investors with a 56% loss

Investing in stocks comes with the risk that the share price will fall. Unfortunately, shareholders of Bioceres Crop Solutions Corp. (NASDAQ:BIOX) have suffered share price declines over the last year. The share price has slid 56% in that time. Notably, shareholders had a tough run over the longer term, too, with a drop of 56% in the last three years. On top of that, the share price is down 20% in the last week.

After losing 20% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

Check out our latest analysis for Bioceres Crop Solutions

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Unfortunately Bioceres Crop Solutions reported an EPS drop of 89% for the last year. This fall in the EPS is significantly worse than the 56% the share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have expected earnings to drop faster. With a P/E ratio of 239.28, it's fair to say the market sees an EPS rebound on the cards.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Bioceres Crop Solutions' key metrics by checking this interactive graph of Bioceres Crop Solutions's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 24% in the last year, Bioceres Crop Solutions shareholders lost 56%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 0.3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Bioceres Crop Solutions (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

We will like Bioceres Crop Solutions better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.