Endeavour Silver (TSE:EDR) delivers shareholders 4.1% CAGR over 3 years, surging 15% in the last week alone
While Endeavour Silver Corp. (TSE:EDR) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 26% in the last quarter. But at least the stock is up over the last three years. In that time, it is up 13%, which isn't bad, but not amazing either.
The past week has proven to be lucrative for Endeavour Silver investors, so let's see if fundamentals drove the company's three-year performance.
Check out our latest analysis for Endeavour Silver
We don't think that Endeavour Silver's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
Endeavour Silver's revenue trended up 21% each year over three years. That's much better than most loss-making companies. While long-term shareholders have made money, the 4% per year gain over three years isn't that great given the rising market. We would have thought the top-line growth might have impressed buyers more. It could be that the stock was previously over-priced, or its losses might worry the market. But if you're looking for growth stocks, there might be an opportunity here.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We know that Endeavour Silver has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Endeavour Silver's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Endeavour Silver shareholders gained a total return of 4.4% during the year. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 2% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Endeavour Silver has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian 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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