Mandalay Resources (TSE:MND) shareholders are still up 111% over 3 years despite falling 11% last week

Not the best quarter since Mandalay Resources Society (EAST: MND) shareholders, since the share price fell by 22% during this period. On the other hand, the three-year return is impressive. Indeed, the share price recorded a very strong increase of 111% during this period. The recent fall in the share price should therefore be seen in this context. The thing to consider is whether the underlying business is doing well enough to support the current price.

Although Mandalay Resources lost US$19 million relative to its market capitalization this week, let’s take a look at its longer-term fundamental trends and see if they have generated any returns.

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In his test The Graham-and-Doddsville super-investors Warren Buffett has described how stock prices don’t always rationally reflect a company’s value. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of ​​how investors’ attitudes toward a company change over time.

In three years of share price growth, Mandalay Resources went from loss to profitability. Given the significance of this milestone, it’s not too surprising that the stock price rose sharply.

The graph below illustrates the evolution of EPS over time (reveal the exact values ​​by clicking on the image).

TSX:MND Earnings per share growth October 25, 2022

It’s of course great to see how Mandalay Resources has grown its profits over the years, but the future is more important to shareholders. It might be interesting to take a look at our free report on the evolution of its financial situation over time.

A different perspective

We regret to report that Mandalay Resources shareholders are down 30% for the year. Unfortunately, this is worse than the general market decline of 6.6%. However, it could simply be that the stock price was impacted by greater market jitters. It might be worth keeping an eye on the fundamentals, in case there is a good opportunity. Unfortunately, last year’s performance capped a bad run, with shareholders facing a total loss of 7% per year over five years. Generally speaking, long-term stock price weakness can be a bad sign, though contrarian investors might want to hunt for the stock in hopes of a turnaround. Before spending more time on Mandalay Resources it may be a good idea to click here to see if insiders have bought or sold stocks.

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on CA exchanges.

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Find out if Mandalay Resources is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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