The Bausch Health Companies (NYSE:BHC) Share Price Is Up 111% And Shareholders Are Boasting About It

By
Simply Wall St
Published
March 02, 2021
NYSE:BHC
Source: Shutterstock

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For example, the Bausch Health Companies Inc. (NYSE:BHC) share price has soared 111% in the last three years. Most would be happy with that. On top of that, the share price is up 69% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

View our latest analysis for Bausch Health Companies

Bausch Health Companies isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 3 years Bausch Health Companies saw its revenue shrink by 2.0% per year. So the share price gain of 28% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
NYSE:BHC Earnings and Revenue Growth March 3rd 2021

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Bausch Health Companies will earn in the future (free profit forecasts).

A Different Perspective

Bausch Health Companies shareholders have received returns of 40% over twelve months, which isn't far from the general market return. To take a positive view, the gain is pleasing, and it sure beats annualized TSR loss of 8%, which was endured over half a decade. While 'turnarounds seldom turn' there are green shoots for Bausch Health Companies. It's always interesting to track share price performance over the longer term. But to understand Bausch Health Companies better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Bausch Health Companies .

Bausch Health Companies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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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. 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.
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