Should you hold on to your Bioceres Crop position?

Bioceres Crop Effect of Exchange Rate Changes on Cash is fairly stable at the moment as compared to the past year. Bioceres Crop reported Effect of Exchange Rate Changes on Cash of 86,786 in 2019. Share Based Compensation is likely to rise to about 47.3 K in 2020, whereas Earnings before Tax are likely to drop (8.3 M) in 2020. In this article, we will break down Bioceres Crop. We will evaluate why recent Bioceres Crop price moves suggest a bounce in October. This post is to show some fundamental factors affecting Bioceres Crop's products and services. I will also show how it may impact the investing outlook for the firm in October.
Published over a year ago
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Reviewed by Raphi Shpitalnik

About 80.0% of Bioceres Crop shares are held by company insiders. Insiders ownership of Bioceres Crop Solutions refers to the amount of Bioceres Crop Solutions equity owned by Bioceres officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Bioceres, including its current ownership diagnostics.
The performance of Bioceres Crop Solutions in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Bioceres Crop's stock prices. When investing in Bioceres Crop, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Bioceres Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Bioceres Crop carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is Bioceres Crop's Liquidity

Bioceres Crop financial leverage refers to using borrowed capital as a funding source to finance Bioceres Crop Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bioceres Crop financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Bioceres Crop's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bioceres Crop's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Bioceres Crop's total debt and its cash.

Bioceres Crop Gross Profit

Bioceres Crop Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bioceres Crop previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bioceres Crop Gross Profit growth over the last 10 years. Please check Bioceres Crop's gross profit and other fundamental indicators for more details.

A Deeper look at Bioceres

Bioceres Crop holds a total of thirty-eight million six hundred ninety thousand outstanding shares. Bioceres Crop Solutions shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company outstanding shares. 79.56 percent of Bioceres Crop Solutions outstanding shares that are owned by insiders signifies that they have been buying or selling the stock in recent months in anticipation of some upcoming event. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
 2016 2017 2018 2020 (projected)
Interest Expense8.25 M40.95 M41.46 M8.47 M
Gross Profit10.43 M56.4 M73.62 M10.7 M

Ownership Breakdown

Retail Investors
18.88%
Insiders
79.56%
Retail Investors18.88
Insiders79.56
Institutions1.56

Bioceres is expecting lower volatility in October

Current maximum drawdown is at 26.0. Bioceres Crop Solutions exhibits very low volatility with skewness of 0.64 and kurtosis of 2.7. However, we advise investors to further study Bioceres Crop Solutions technical indicators to make sure all market info is available and is reliable.

Our Conclusion on Bioceres Crop

While many of the other players in the agricultural inputs industry are either recovering or due for a correction, Bioceres may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 10th of September 2020, our analysis shows that Bioceres Crop almost neglects market trends. The company is undervalued and projects close to average probability of bankruptcy for the next 2 years. Our primary 30 days buy-hold-sell advice on the company is Cautious Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Bioceres Crop Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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