Investors Who Bought IMPACT Silver (CVE:IPT) Shares Five Years Ago Are Now Up 648%

Long term investing can be life changing when you buy and hold the truly great businesses. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the IMPACT Silver Corp. (CVE:IPT) share price has soared 648% over five years. And this is just one example of the epic gains achieved by some long term investors. We note the stock price is up 6.3% in the last seven days.

Anyone who held for that rewarding ride would probably be keen to talk about it.

Check out our latest analysis for IMPACT Silver

Because IMPACT Silver made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last half decade IMPACT Silver's revenue has actually been trending down at about 4.0% per year. So it's pretty surprising to see that the share price is up 50% per year. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. I think it's fair to say there is probably a fair bit of excitement in the price.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

We're pleased to report that IMPACT Silver shareholders have received a total shareholder return of 173% over one year. That gain is better than the annual TSR over five years, which is 50%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with IMPACT Silver (including 1 which is can't be ignored) .

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 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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