Bunge Global (NYSE: BG), a major player in agribusiness and food, has experienced a 32% decline in its stock over the last year, while the S&P 500 has increased by 12% during the same timeframe. The main cause: a significant drop in global crop prices. An oversupply of corn, soybeans, and wheat has driven commodity prices down to multi-year lows, squeezing margins throughout Bunge’s core processing operations. In Q1 2025, Bunge revealed a 40% year-over-year decrease in adjusted earnings, leading to a downward adjustment in its full-year EPS prediction to $7.75. Even with efforts to diversify and expand through strategic initiatives like the Viterra merger, Bunge continues to be significantly susceptible to cyclical agricultural market fluctuations. Separately, see MSFT Stock to $1000?
At the current price of $75, Bunge Global seems attractively priced, trading at a price-to-sales (P/S) ratio of merely 0.2 in comparison to 3.1 for the S&P 500, and a price-to-earnings (P/E) ratio of 9.5 against the broader market’s 26.9. Nevertheless, low valuation multiples by themselves do not render a stock appealing. When evaluated across four essential dimensions: Growth, Profitability, Financial Stability, and Downturn Resilience, Bunge underperforms, indicating that the discounted valuation highlights deeper operational and structural shortcomings. That said, if you’re looking for growth with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and yielded returns exceeding 91% since its inception.
How Have Bunge Global’s Revenues Grown Over Recent Years?
Bunge Global’s Revenues have significantly dropped in recent years.
• Bunge Global has experienced its top line decline at an average rate of 5.7% over the past 3 years (compared to an increase of 5.5% for S&P 500)
• Its revenues have decreased 10.9% from $58 Bil to $51 Bil in the last 12 months (versus growth of 5.5% for S&P 500)
• Additionally, its quarterly revenues reduced by 13.2% to $12 Bil in the most recent quarter from $13 Bil a year prior (as opposed to a 4.8% improvement for S&P 500)
How Profitable Is Bunge Global?
Bunge Global’s profit margins are significantly below most companies in the Trefis coverage universe.
• Bunge Global’s Operating Income over the last four quarters was $1.4 Bil, representing a very poor Operating Margin of 2.7%
• Bunge Global’s Operating Cash Flow (OCF) during this time was $621 Mil, indicating a very poor OCF Margin of 1.2% (vs. 14.9% for S&P 500)
• For the last four-quarter period, Bunge Global’s Net Income was $1.1 Bil – reflecting a poor Net Income Margin of 2.1% (compared to 11.6% for S&P 500)
Does Bunge Global Look Financially Stable?
Bunge Global’s balance sheet appears stable.
• Bunge Global’s Debt amount was $7.7 Bil at the conclusion of the most recent quarter, while its market capitalization is $10 Bil (as of 7/7/2025). This results in a poor Debt-to-Equity Ratio of 71.2% (versus 19.4% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) constitutes $3.9 Bil of the $27 Bil in Total Assets for Bunge Global. This results in a strong Cash-to-Assets Ratio of 14.6%
How Resilient Is BG Stock During A Downturn?
BG stock has performed significantly worse than the benchmark S&P 500 index during some recent downturns. Concerned about how a market crash could affect BG stock? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes.
Inflation Shock (2022)
• BG stock declined 35.4% from a peak of $126.76 on 18 April 2022 to $81.92 on 26 September 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500
• The stock is still yet to regain its pre-Crisis peak
• The highest price the stock has achieved since then is 115.98 on 7 August 2023 and it currently trades around $75
Covid Pandemic (2020)
• BG stock dropped 47.8% from a peak of $57.94 on 3 January 2020 to $30.25 on 18 March 2020, versus a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully returned to its pre-Crisis peak by 28 October 2020
Global Financial Crisis (2008)
• BG stock decreased 77.5% from a high of $133.00 on 14 January 2008 to $29.99 on 28 October 2008, compared to a peak-to-trough decline of 56.8% for the S&P 500
• The stock has yet to recover to its pre-Crisis peak
Putting All The Pieces Together
Despite a seemingly favorable valuation, BG stock appears fundamentally fragile in areas of growth, profitability, and resilience during downturns. Until there’s proof of a shift in commodity prices or consistent improvement in operating performance, the stock remains a high-risk investment.
While avoiding BG stock for now is advisable, you might consider the Trefis Reinforced Value (RV) Portfolio, which has surpassed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to deliver strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks offered a flexible way to capitalize on favorable market conditions while minimizing losses in declining markets, as described in RV Portfolio performance metrics.