Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. For example, the Endeavour Mining Corporation ( TSE:EDV ) share price is up a whopping 562% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. Also pleasing for shareholders was the 25% gain in the last three months. But this could be related to the strong market, which is up 15% in the last three months.
We love happy stories like this one. The company should be really proud of that performance!
Because Endeavour Mining 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
For the last half decade, Endeavour Mining can boast revenue growth at a rate of 12% per year. That's a fairly respectable growth rate. Arguably it's more than reflected in the very strong share price gain of 46% a year over a half a decade. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling Endeavour Mining stock, you should check out this free report showing analyst profit forecasts .
A Different Perspective
We're pleased to report that Endeavour Mining shareholders have received a total shareholder return of 34% over one year. However, the TSR over five years, coming in at 46% per year, is even more impressive. It's always interesting to track share price performance over the longer term. But to understand Endeavour Mining better, we need to consider many other factors. Even so, be aware that Endeavour Mining is showing 2 warning signs in our investment analysis , you should know about...
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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 email@example.com .