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Introducing Biom’Up (EPA:BUP), The Stock That Slid 61% In The Last Year

Taking the occasional loss comes part and parcel with investing on the stock market. And there’s no doubt that Biom’Up S.A. (EPA:BUP) stock has had a really bad year. To wit the share price is down 61% in that time. Biom’Up may have better days ahead, of course; we’ve only looked at a one year period. The good news is that the stock is up 3.2% in the last week.

Check out our latest analysis for Biom’Up

Given that Biom’Up didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. 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.

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In just one year Biom’Up saw its revenue fall by 53%. That looks like a train-wreck result to investors far and wide. Arguably, the market has responded appropriately to this performance by sending the share price down 61% in the same time period. Buying shares in companies that lose money, shrink revenue, and see share price declines is unpopular with investors, but popular with speculators (apparently). So we’ll be looking for strong improvements on the numbers before getting excited.

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

ENXTPA:BUP Income Statement, March 15th 2019
ENXTPA:BUP Income Statement, March 15th 2019

This free interactive report on Biom’Up’s balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Given that the market gained 5.1% in the last year, Biom’Up shareholders might be miffed that they lost 61%. While the aim is to do better than that, it’s worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 9.8% over the last three months, the market doesn’t seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. You could get a better understanding of Biom’Up’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Of course Biom’Up may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.