While Bioceres Crop Solutions (NASDAQ:BIOX) shareholders have made 132% in 3 years, increasing losses might now be front of mind as stock sheds 8.2% this week

Simply Wall St

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. For example, the Bioceres Crop Solutions Corp. (NASDAQ:BIOX) share price has soared 132% in the last three years. Most would be happy with that. On the other hand, the stock price has retraced 8.2% in the last week. However, this might be related to the overall market decline of 5.3% in a week.

Although Bioceres Crop Solutions has shed US$63m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for Bioceres Crop Solutions

Because Bioceres Crop Solutions made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years Bioceres Crop Solutions saw its revenue grow at 34% per year. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 32% compound over three years. This suggests the market has recognized the progress the business has made, at least to a significant degree. Nonetheless, we'd say Bioceres Crop Solutions is still worth investigating - successful businesses can often keep growing for long periods.

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

NasdaqGS:BIOX Earnings and Revenue Growth March 14th 2023

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Bioceres Crop Solutions shareholders are down 23% for the year, falling short of the market return. Meanwhile, the broader market slid about 7.3%, likely weighing on the stock. Fortunately the longer term story is brighter, with total returns averaging about 32% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. 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 1 warning sign for Bioceres Crop Solutions that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

Valuation is complex, but we're here to simplify it.

Discover if Bioceres Crop Solutions might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.