By Rob Otman
Bunge stock had a good day in the market on Monday March 12. Shares climbed 1.29% and closed the day at $75.93. They’re now trading 9.34% below their 52-week high of $83.75.
With yesterday’s good gain, Bunge now has a market cap of $11 billion. That makes it a large cap company.
The business operates in the agricultural industry and employs 32,000 people. Its shares trade primarily on the New York stock exchange.
Bunge has 140.7 million shares outstanding and 1.62 million traded hands for the day. That’s below the average 30-day volume of 2.18 million shares.
Over the last five years, Bunge’s revenue is down by -24.92%. You can see this drop in annual revenue chart below…
In the last year alone, Bunge’s revenue has grown by 7.3%. That’s a solid sign for Bunge stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, Bunge will continue to pull in revenue. So let’s take a closer look at the company’s total financial health. And the best way to do that is by looking at its balance sheet… Bunge’s cash comes in at $814 million and the company’s debt is close to $5 billion…
Bunge’s cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects.
What is Bunge Stock Worth?
Let’s look at a few key ratios to determine the value of Bunge stock…
Price-to-Earnings (P/E): This is one of the most widely used metrics and it comes in at 39.37. That’s a bit high and generally, the lower the better. Investors will bid up stock prices and in turn, P/E ratios, when they expect future earnings to grow.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 1.65, Bunge looks reasonable… but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company… but your analysis should go much deeper…
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Source:: Investment You