While Bionano Genomics (NASDAQ:BNGO) shareholders have been in the dark for 3 years, those who bought a week ago are not so lucky
Bionano Genomics, Inc. (NASDAQ: BNGO) shareholders saw the stock price drop 23% during the month. But that doesn’t compromise the rather pleasing long-term performance, if you measure over the past three years. Indeed, the share price is up 185% very strongly during this period. The recent fall in the share price should therefore be seen in this context. Fundamental trading performance will ultimately dictate whether the top is in place or if this is a great buying opportunity.
Although the past week hurt the company’s three-year performance, let’s take a look at recent trends in underlying activity and see if the gains have been aligned.
Before looking at performance, know that our analysis indicates that BNGO is potentially overvalued!
Bionano Genomics is currently unprofitable, so most analysts would look to revenue growth to get a sense of how fast the underlying business is growing. Generally speaking, companies without profits should increase their revenue every year, and at a good pace. Indeed, rapid revenue growth can be easily extrapolated to predict profits, often of considerable size.
Bionano Genomics revenue grew 31% annually over three years. That’s a lot better than most loss-making companies. Along the way, the stock price has gained 42% annually, a solid pop by our standards. This suggests that the market has recognized the progress made by the company, at least to a significant extent. That’s not to say we think the stock price is too high. In fact, it might be worth keeping an eye on this one.
The graph below illustrates the evolution of income and revenue over time (reveal the exact values by clicking on the image).
This free Bionano Genomics’ Interactive Balance Sheet Strength Report is a great place to start if you want to dive deeper into the stock analysis.
A different perspective
Bionano Genomics shareholders are down 60% for the year, below market performance. The market lost around 17%, no doubt weighing on the stock price. Fortunately, the longer-term story is brighter, with total returns averaging around 42% per year over three years. Sometimes when a good quality long term gainer has a weak period it turns out to be an opportunity, but you really need to be sure the quality is there. It is always interesting to follow the evolution of the share price over the long term. But to better understand Bionano Genomics, we need to consider many other factors. Take risks, for example – Bionano Genomics has 3 warning signs (and 1 which is potentially serious) that we think you should know about.
But note: Bionano Genomics may not be the best stock to buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
Valuation is complex, but we help make it simple.
Find out if Bionano Genomics is potentially overvalued or undervalued by viewing our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.
See the free analysis