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The Compañía de Minas BuenaventuraA (NYSE:BVN) Share Price Has Gained 91% And Shareholders Are Hoping For More

When we invest, we're generally looking for stocks that outperform the market average. And in our experience, buying the right stocks can give your wealth a significant boost. For example, long term Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) shareholders have enjoyed a 91% share price rise over the last half decade, well in excess of the market return of around 52% (not including dividends).

See our latest analysis for Compañía de Minas BuenaventuraA

Given that Compañía de Minas BuenaventuraA didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

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In the last 5 years Compañía de Minas BuenaventuraA saw its revenue shrink by 1.0% per year. Even though revenue hasn't increased, the stock actually gained 14%, per year, during the same period. It's probably worth checking other factors such as the profitability, to try to understand the share price action. It may not be reflecting the revenue.

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
earnings-and-revenue-growth

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Compañía de Minas BuenaventuraA's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Compañía de Minas BuenaventuraA's TSR of 95% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

While the broader market gained around 13% in the last year, Compañía de Minas BuenaventuraA shareholders lost 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 14% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Compañía de Minas BuenaventuraA better, we need to consider many other factors. For instance, we've identified 1 warning sign for Compañía de Minas BuenaventuraA that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.