Yahoo Finance The Golden Star Resources (TSE:GSC) Share Price Has Soared 402%, Delighting Many Shareholders
Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held Golden Star Resources Ltd. (TSE:GSC) shares for the last five years, while they gained 402%. If that doesn't get you thinking about long term investing, we don't know what will. Also pleasing for shareholders was the 54% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.
View our latest analysis for Golden Star Resources
Golden Star Resources isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 5 years Golden Star Resources saw its revenue grow at 1.5% per year. Put simply, that growth rate fails to impress. So shareholders should be pretty elated with the 38% increase per year, in that time. We don't think the growth over the period is that great, but it could be that faster growth appears to some to be on the horizon. Having said that, a closer look at the numbers might surface good reasons to believe that profits will gush in the future.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Golden Star Resources will earn in the future (free profit forecasts).
A Different Perspective
It's good to see that Golden Star Resources has rewarded shareholders with a total shareholder return of 62% in the last twelve months. That's better than the annualised return of 38% 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. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Golden Star Resources you should know about.
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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