Announcing: EMX Royalty (CVE:EMX) Stock Soared An Exciting 553% In The Last Five Years

We think all investors should try to buy and hold high quality multi-year winners. While the best companies are hard to find, but they can generate massive returns over long periods. For example, the EMX Royalty Corporation (CVE:EMX) share price is up a whopping 553% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 23% in about a quarter. But this could be related to the strong market, which is up 11% in the last three months.

It really delights us to see such great share price performance for investors.

Check out our latest analysis for EMX Royalty

EMX Royalty wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.

For the last half decade, EMX Royalty can boast revenue growth at a rate of 26% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 46% per year in that time. Despite the strong run, top performers like EMX Royalty have been known to go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at EMX Royalty's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that EMX Royalty has rewarded shareholders with a total shareholder return of 100% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 46% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand EMX Royalty better, we need to consider many other factors. Even so, be aware that EMX Royalty is showing 2 warning signs in our investment analysis , you should know about...

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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