If You Had Bought Major Drilling Group International (TSE:MDI) Stock A Year Ago, You Could Pocket A 202% Gain Today
Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Major Drilling Group International Inc. (TSE:MDI) share price has soared 202% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 36% gain in the last three months. Also impressive, the stock is up 46% over three years, making long term shareholders happy, too.
See our latest analysis for Major Drilling Group International
Major Drilling Group International wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Major Drilling Group International saw its revenue shrink by 6.6%. We're a little surprised to see the share price pop 202% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Major Drilling Group International stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Major Drilling Group International shareholders have received a total shareholder return of 202% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 8% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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 - Major Drilling Group International has 1 warning sign we think you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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.
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