The Golden Minerals (NYSEMKT:AUMN) Share Price Has Gained 150%, So Why Not Pay It Some Attention?

It's been a soft week for Golden Minerals Company (NYSEMKT:AUMN) shares, which are down 14%. But that doesn't change the fact that the returns over the last year have been very strong. We're very pleased to report the share price shot up 150% in that time. So we think most shareholders won't be too upset about the recent fall. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Check out our latest analysis for Golden Minerals

Because Golden Minerals 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Golden Minerals actually shrunk its revenue over the last year, with a reduction of 27%. We're a little surprised to see the share price pop 150% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

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

A Different Perspective

It's good to see that Golden Minerals has rewarded shareholders with a total shareholder return of 150% in the last twelve months. That gain is better than the annual TSR over five years, which is 12%. 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. It's always interesting to track share price performance over the longer term. But to understand Golden Minerals better, we need to consider many other factors. For example, we've discovered 3 warning signs for Golden Minerals (2 are concerning!) that you should be aware of before investing here.

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 US 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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