Ora Banda Mining (ASX:OBM) shareholders have received a CAGR of 121% over the last three years.

Ora Banda Mining Limited (ASX:OBM) Shareholders saw the stock price decline by 12% during the month. But that doesn’t change the fact that the returns over the past three years have been amazing. A long-term view reveals that the share price rose by 892% during that period. It can be said that the recent decline is expected after this strong rise. The only way to form a view on whether the current price is justified is to look at the merits of the company itself. It is really pleasing to see such great share price performance for investors.

So let’s check and see if the company’s long-term performance is in line with the progress of the underlying business.

View our latest analysis for Ora Banda Mining

As Buffett put it, “Ships will sail around the world but the Flat Earth Society will flourish.” There will continue to be wide differences between price and value in the market…’ By comparing earnings per share (EPS) and share price changes over time, we can get a sense of how investor attitudes to a company have changed over time.

During three years of stock price growth, Ora Banda Mining went from loss-making to profitable. This type of shift can be an inflection point that justifies strong stock price gains, just as we saw here.

The company’s earnings per share (over time) are shown in the image below (click to see the exact numbers).

We know that Ora Banda Mining has improved its earnings over the past three years, but what does the future hold? You can see how its balance sheet has strengthened (or weakened) over time in this free Interactive drawing.

We’ve already covered the Ora Banda Mining share price movement, but we should also mention the total shareholder return (TSR). The TSR is arguably a more complete return calculation because it represents the value of dividends (as if they were reinvested), along with the notional value of any diluted capital provided to shareholders. We note that Ora Banda Mining’s TSR of 982% is higher than its share price return of 892%. When you consider that it did not pay a dividend, this data suggests that shareholders may have benefited from the spin-off, or had the opportunity to acquire attractively priced shares in the discounted capital raising.

It’s good to see that Ora Banda Mining has rewarded shareholders with a total shareholder return of 185% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 31% annually), the stock’s performance appears to have improved recently. Since the stock price momentum remains strong, it may be worth taking a closer look at the stock, so as not to miss out. I find it interesting to look at stock price over the long term as an indicator of business performance. But to get real insight, we need to consider other information as well. Take Risk, for example – Ora Banda Mining has done just that 2 warning signs (And 1 is important) We think you should know about it.

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