Yahoo Finance Bausch Health Companies (NYSE:BHC investor three-year losses grow to 72% as the stock sheds US$388m this past week
As every investor would know, not every swing hits the sweet spot. But you want to avoid the really big losses like the plague. So consider, for a moment, the misfortune of Bausch Health Companies Inc. (NYSE:BHC) investors who have held the stock for three years as it declined a whopping 72%. That would be a disturbing experience. Even worse, it's down 25% in about a month, which isn't fun at all. Importantly, this could be a market reaction to the recently released financial results. You can check out the latest numbers in our company report.
After losing 12% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
See our latest analysis for Bausch Health Companies
Bausch Health Companies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years, Bausch Health Companies saw its revenue grow by 1.7% per year, compound. That's not a very high growth rate considering it doesn't make profits. But the share price crash at 20% per year does seem a bit harsh! While we're definitely wary of the stock, after that kind of performance, it could be an over-reaction. Before considering a purchase, take a look at the losses the company is racking up.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Bausch Health Companies stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's good to see that Bausch Health Companies has rewarded shareholders with a total shareholder return of 31% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 11% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Bausch Health Companies , and understanding them should be part of your investment process.
But note: Bausch Health Companies 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.
