Saudi Arabian Mining Company (Ma'aden)'s (TADAWUL:1211) investors will be pleased with their stellar 250% return over the last five years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Saudi Arabian Mining Company (Ma'aden) (TADAWUL:1211) share price has soared 250% in the last half decade. Most would be very happy with that. And in the last month, the share price has gained 18%.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

Check out our latest analysis for Saudi Arabian Mining Company (Ma'aden)

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, Saudi Arabian Mining Company (Ma'aden) managed to grow its earnings per share at 53% a year. The EPS growth is more impressive than the yearly share price gain of 28% over the same period. So it seems the market isn't so enthusiastic about the stock these days. Having said that, the market is still optimistic, given the P/E ratio of 63.53.

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

It might be well worthwhile taking a look at our free report on Saudi Arabian Mining Company (Ma'aden)'s earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Saudi Arabian Mining Company (Ma'aden) shareholders have received a total shareholder return of 27% over one year. However, the TSR over five years, coming in at 28% per year, is even more impressive. 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 be aware of the 1 warning sign we've spotted with Saudi Arabian Mining Company (Ma'aden) .

We will like Saudi Arabian Mining Company (Ma'aden) better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Saudi exchanges.

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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.