Copperstone Resources'(STO:COPP B) Share Price Is Down 58% Over The Past Three Years.

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. Long term Copperstone Resources AB (STO:COPP B) shareholders know that all too well, since the share price is down considerably over three years. Sadly for them, the share price is down 58% in that time. It's up 2.6% in the last seven days.

Check out our latest analysis for Copperstone Resources

Copperstone Resources isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over three years, Copperstone Resources grew revenue at 15% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 16% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).

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

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Copperstone Resources will earn in the future (free profit forecasts).

A Different Perspective

We're pleased to report that Copperstone Resources shareholders have received a total shareholder return of 51% over one year. That's better than the annualised return of 10% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Like risks, for instance. Every company has them, and we've spotted 7 warning signs for Copperstone Resources (of which 2 are a bit unpleasant!) you should know about.

Copperstone Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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