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SilverCrest Metals' (TSE:SIL) investors will be pleased with their impressive 120% return over the last five years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of SilverCrest Metals Inc. (TSE:SIL) stock is up an impressive 120% over the last five years. Also pleasing for shareholders was the 20% gain in the last three months.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for SilverCrest Metals

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

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During the last half decade, SilverCrest Metals became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

We know that SilverCrest Metals 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 SilverCrest Metals stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

SilverCrest Metals provided a TSR of 8.8% over the year. That's fairly close to the broader market return. It has to be noted that the recent return falls short of the 17% shareholders have gained each year, over half a decade. More recently, the share price growth has slowed. But it has to be said the overall picture is one of good long term and short term performance. Arguably that makes SilverCrest Metals a stock worth watching. It's always interesting to track share price performance over the longer term. But to understand SilverCrest Metals better, we need to consider many other factors. For example, we've discovered 3 warning signs for SilverCrest Metals (1 shouldn't be ignored!) that you should be aware of before investing here.

Of course SilverCrest Metals 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.