Bunge Global (NYSE: BG) has experienced a 32% decline in stock value over the past year, contrasting with a 12% gain in the S&P 500. The decrease is largely attributed to a significant downturn in global crop prices due to oversupplies of corn, soybeans, and wheat. In Q1 2025, Bunge reported a 40% year-over-year drop in adjusted earnings, leading to a revised full-year EPS forecast of $7.75.
Currently trading at $75, Bunge displays low valuation multiples such as a price-to-sales (P/S) ratio of 0.2 and a price-to-earnings (P/E) ratio of 9.5, compared to 3.1 and 26.9 for the S&P 500, respectively. However, it has seen a 10.9% decline in revenues over the past 12 months, dropping from $58 billion to $51 billion.
Bunge’s financial stability raises concern, with a debt figure of $7.7 billion against a market capitalization of $10 billion, resulting in a debt-to-equity ratio of 71.2%. Despite cash holdings amounting to $3.9 billion, operational weaknesses indicate that the stock remains a high-risk investment until improvements in commodity pricing and operating metrics are observed.
