Coeur Mining (NYSE:CDE) pops 14% this week, taking one-year gains to 189%

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Coeur Mining, Inc. (NYSE:CDE) share price has soared 189% return in just a single year. It's also good to see the share price up 16% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 7.7% in 90 days). However, the longer term returns haven't been so impressive, with the stock up just 8.0% in the last three years.

Since it's been a strong week for Coeur Mining shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Coeur Mining

Because Coeur Mining 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 hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Coeur Mining saw its revenue grow by 18%. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 189%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on Coeur Mining's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Coeur Mining shareholders have received a total shareholder return of 189% over the last year. That gain is better than the annual TSR over five years, which is 7%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Coeur Mining , and understanding them should be part of your investment process.

But note: Coeur Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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