Aya Gold & Silver (TSE:AYA) shareholder returns have been massive, earning 332% in 3 years

It might be of some concern to shareholders to see the Aya Gold & Silver Inc. (TSE:AYA) share price down 10% in the last month. But that doesn't change the fact that the returns over the last three years have been spectacular. Over that time, we've been excited to watch the share price climb an impressive 332%. Arguably, the recent fall is to be expected after such a strong rise. The share price action could signify that the business itself is dramatically improved, in that time.

Since the stock has added CA$86m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Aya Gold & Silver

While Aya Gold & Silver made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last 3 years Aya Gold & Silver saw its revenue grow at 48% per year. That's well above most pre-profit companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 63% per year, over the same period. Despite the strong run, top performers like Aya Gold & Silver have been known to go on winning for decades. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth

We know that Aya Gold & Silver has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Aya Gold & Silver stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Aya Gold & Silver shareholders have received a total shareholder return of 15% over one year. However, that falls short of the 30% TSR per annum it has made for shareholders, each year, over five years. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Aya Gold & Silver (of which 1 can't be ignored!) you should know about.

Of course Aya Gold & Silver may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian 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.

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