Bioceres Crop Solutions (NASDAQ:BIOX) rises 9.7% this week, taking five-year gains to 77%

If you buy and hold a stock for many years, you'd hope to be making a profit. Furthermore, you'd generally like to see the share price rise faster than the market. Unfortunately for shareholders, while the Bioceres Crop Solutions Corp. (NASDAQ:BIOX) share price is up 77% in the last five years, that's less than the market return. The last year has been disappointing, with the stock price down 4.6% in that time.

The past week has proven to be lucrative for Bioceres Crop Solutions investors, so let's see if fundamentals drove the company's five-year performance.

View our latest analysis for Bioceres Crop Solutions

Given that Bioceres Crop Solutions only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 5 years Bioceres Crop Solutions saw its revenue grow at 26% per year. Even measured against other revenue-focussed companies, that's a good result. It's nice to see shareholders have made a profit, but the gain of 12% over the period isn't that impressive compared to the overall market. You could argue the market is still pretty skeptical, given the growing revenues. Arguably this falls in a potential sweet spot - modest share price gains but good top line growth over the long term justifies investigation, in our book.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It is of course excellent to see how Bioceres Crop Solutions has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Bioceres Crop Solutions stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Investors in Bioceres Crop Solutions had a tough year, with a total loss of 4.6%, against a market gain of about 23%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 12% 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. It's always interesting to track share price performance over the longer term. But to understand Bioceres Crop Solutions better, we need to consider many other factors. For instance, we've identified 2 warning signs for Bioceres Crop Solutions (1 doesn't sit too well with us) that you should be aware of.

But note: Bioceres Crop Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.