Yahoo Finance Investors might be losing patience for BILL Holdings' (NYSE:BILL) increasing losses, as stock sheds 10% over the past week
Some BILL Holdings, Inc. (NYSE:BILL) shareholders are probably rather concerned to see the share price fall 34% over the last three months. But that doesn't undermine the rather lovely longer-term return, if you measure over the last three years. In three years the stock price has launched 154% higher: a great result. It's not uncommon to see a share price retrace a bit, after a big gain. If the business can perform well for years to come, then the recent drop could be an opportunity.
Although BILL Holdings has shed US$917m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
View our latest analysis for BILL Holdings
Because BILL Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years BILL Holdings has grown its revenue at 66% annually. That's much better than most loss-making companies. Along the way, the share price gained 36% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say BILL Holdings is still worth investigating - successful businesses can often keep growing for long periods.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
BILL Holdings is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for BILL Holdings in this interactive graph of future profit estimates.
A Different Perspective
BILL Holdings shareholders are down 63% for the year, falling short of the market return. Meanwhile, the broader market slid about 10%, likely weighing on the stock. Investors are up over three years, booking 36% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for BILL Holdings you should know about.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
