The 4.2% return this week takes Coeur Mining's (NYSE:CDE) shareholders one-year gains to 121%

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Coeur Mining, Inc. (NYSE:CDE) shareholders might be concerned after seeing the share price drop 18% in the last month. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Like an eagle, the share price soared 121% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

Since the stock has added US$87m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for Coeur Mining

Because Coeur 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Coeur Mining saw its revenue grow by 18%. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 121%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at Coeur Mining's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Coeur Mining shareholders have received a total shareholder return of 121% over one year. That gain is better than the annual TSR over five years, which is 2%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Take risks, for example - Coeur Mining has 2 warning signs we think you should be aware of.

For those who like to find winning investments this free list of undervalued 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 American exchanges.

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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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