Bunge Stock Analysis, Valuation (NYSE:BG)
Take a look at Amigobulls Bunge stock analysis video. Our BG analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Bunge Ltd Stock Rating 1.5/5
Amigobulls BG stock analysis takes into account various financial ratios like relative valuation, Bunge revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Bunge dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Bunge valuation analysis. Bunge stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy BG stock?
- The lower PS ratio 0.2 for BG stock versus Basic Materials sector average of 1.4 is a positive for the company.
Should you sell BG stock?
- The company saw an average annual sales decline of -6.7 in sales over the last 5 years.
- Bunge had an unimpressive average operating margin of 0.57 during the Last Twelve Months (LTM).
- Bunge's Net margins were poor at 0.2% in the last twelve months.
- Bunge has a debt/equity ratio of 0.97, which is worse than the average in the Basic Materials sector.
- Trading at a PE ratio of 44.7, BG stock is overvalued in comparison to sector average multiple of 19.7.
- Bunge provides a low return on invested capital of 1.3.
- Bunge has a low return on equity of 1.2 over the last twelve months.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -15.5.
Investors can use Amigobulls Bunge stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.
While doing a study of the company financials, Bunge revenue growth and profit or net income are two main metrics which help in identifying whether BG stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.