Yahoo Finance If You Had Bought Amerigo Resources (TSE:ARG) Shares Five Years Ago You'd Have Earned146% Returns
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Amerigo Resources Ltd. (TSE:ARG) stock is up an impressive 146% over the last five years. It's also good to see the share price up 90% over the last quarter. 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.
See our latest analysis for Amerigo Resources
Amerigo 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 5 years Amerigo Resources saw its revenue grow at 12% per year. That's a fairly respectable growth rate. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 20% per year over five years. Given that the business has made good progress on the top line, it would be worth taking a look at the growth trend. Accelerating growth can be a sign of an inflection point - and could indicate profits lie ahead. Worth watching 100%
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Amerigo Resources' financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that Amerigo Resources shareholders have received a total shareholder return of 1.7% over the last year. However, that falls short of the 20% TSR per annum it has made for shareholders, each year, over five years. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand Amerigo Resources better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Amerigo Resources .
But note: Amerigo Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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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