Introducing Eldorado Gold (TSE:ELD), A Stock That Climbed 94% In The Last Three Years

By
Simply Wall St
Published
June 24, 2021
TSX:ELD
Source: Shutterstock

It might be of some concern to shareholders to see the Eldorado Gold Corporation (TSE:ELD) share price down 11% in the last month. But that doesn't change the fact that the returns over the last three years have been pleasing. In fact, the company's share price bested the return of its market index in that time, posting a gain of 94%.

See our latest analysis for Eldorado Gold

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Eldorado Gold became profitable within the last three years. So we would expect a higher share price over the period.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
TSX:ELD Earnings Per Share Growth June 25th 2021

We know that Eldorado Gold has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Eldorado Gold's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Eldorado Gold shareholders are up 1.2% for the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 9% per year, over five years. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Eldorado Gold that you should be aware of before investing here.

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.

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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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