Some May Be Optimistic About Triple Flag Precious Metals' (TSE:TFPM) Earnings

Soft earnings didn't appear to concern Triple Flag Precious Metals Corp.'s (TSE:TFPM) shareholders over the last week. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors.

Our free stock report includes 3 warning signs investors should be aware of before investing in Triple Flag Precious Metals. Read for free now.

The Impact Of Unusual Items On Profit

For anyone who wants to understand Triple Flag Precious Metals' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$37m due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. In the twelve months to March 2025, Triple Flag Precious Metals had a big unusual items expense. All else being equal, this would likely have the effect of making the statutory profit look worse than its underlying earnings power.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On Triple Flag Precious Metals' Profit Performance

As we mentioned previously, the Triple Flag Precious Metals' profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that Triple Flag Precious Metals' statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 3 warning signs for Triple Flag Precious Metals you should know about.

Today we've zoomed in on a single data point to better understand the nature of Triple Flag Precious Metals' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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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.