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Did Business Growth Power Taseko Mines' (TSE:TKO) Share Price Gain of 179%?

Simply Wall St
·3 mins read

Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Taseko Mines Limited (TSE:TKO) share price has soared 179% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 148% gain in the last three months. In contrast, the longer term returns are negative, since the share price is 29% lower than it was three years ago.

View our latest analysis for Taseko Mines

Given that Taseko Mines 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Taseko Mines saw its revenue shrink by 0.5%. We're a little surprised to see the share price pop 179% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Taseko Mines will earn in the future (free profit forecasts).

A Different Perspective

It's nice to see that Taseko Mines shareholders have received a total shareholder return of 179% over the last year. That's better than the annualised return of 22% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Taseko Mines better, we need to consider many other factors. Take risks, for example - Taseko Mines has 2 warning signs we think you should be aware of.

Taseko Mines is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider 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 editorial-team@simplywallst.com.