Yahoo Finance If You Had Bought Monument Mining (CVE:MMY) Stock Three Years Ago, You'd Be Sitting On A 55% Loss, Today
Monument Mining Limited (CVE:MMY) shareholders should be happy to see the share price up 13% in the last month. But over the last three years we've seen a quite serious decline. Regrettably, the share price slid 55% in that period. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.
Check out our latest analysis for Monument Mining
Monument Mining wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over three years, Monument Mining grew revenue at 8.4% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 23% compounded, over three years. The market must have had really high expectations to be disappointed with this progress. So this is one stock that might be worth investigating further, or even adding to your watchlist.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling Monument Mining stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Monument Mining shareholders are down 18% for the year, but the market itself is up 8.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 13% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality business. 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. For instance, we've identified 2 warning signs for Monument Mining that you should be aware of.
But note: Monument Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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