- Metals and Mining
Investors bid Ora Banda Mining (ASX:OBM) up AU$29m despite increasing losses YoY, taking one-year return to 186%
Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example Ora Banda Mining Limited (ASX:OBM). Its share price is already up an impressive 186% in the last twelve months. It's also good to see the share price up 109% 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. The longer term returns have not been as good, with the stock price only 27% higher than it was three years ago.
On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.
Check out our latest analysis for Ora Banda Mining
Given that Ora Banda Mining didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 year Ora Banda Mining saw its revenue grow by 34%. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 186% as mentioned above. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Pleasingly, Ora Banda Mining's total shareholder return last year was 186%. So this year's TSR was actually better than the three-year TSR (annualized) of 12%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Ora Banda Mining better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Ora Banda Mining you should be aware of, and 2 of them don't sit too well with us.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.
Valuation is complex, but we're helping make it simple.
Find out whether Ora Banda Mining is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
Ora Banda Mining
Ora Banda Mining Limited engages in the exploration, operation, and development of mineral properties in Australia.
Adequate balance sheet and slightly overvalued.