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Does Dundee Precious Metals's (TSE:DPM) Share Price Gain of 58% Match Its Business Performance?

Simply Wall St

Dundee Precious Metals Inc. ( TSE:DPM ) shareholders might be concerned after seeing the share price drop 12% in the last month. But don't let that distract from the very nice return generated over three years. To wit, the share price did better than an index fund, climbing 58% during that period.

View our latest analysis for Dundee Precious Metals

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During three years of share price growth, Dundee Precious Metals achieved compound earnings per share growth of 120% per year. The average annual share price increase of 16% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

TSX:DPM Past and Future Earnings, April 19th 2019

We know that Dundee Precious Metals has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Dundee Precious Metals's financial health with this free report on its balance sheet .

A Different Perspective

It's good to see that Dundee Precious Metals has rewarded shareholders with a total shareholder return of 24% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.8% 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. Before spending more time on Dundee Precious Metals it might be wise to click here to see if insiders have been buying or selling shares.

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

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.