Profit growth has exceeded the notable 12% CAGR provided to shareholders of Sandstorm Gold (TSE: SSL) over the past three years

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While Gold Sandstorm Ltd. (TSE: SSL) Shareholders are probably generally happy, the stock hasn’t gone particularly well recently, with the stock price falling 22% in the last quarter. But over the past three years, the returns have been decent. In fact, the stock is up 41%, which is better than the market return of 39%.

As it has been a strong week for Sandstorm Gold shareholders, let’s take a look at the trend in longer term fundamentals.

Check out our latest review for Sandstorm Gold

To paraphrase Benjamin Graham: In the short term the market is a voting machine, but in the long term it is a weighing machine. An imperfect but reasonable way to gauge how sentiment is changing around a company is to compare earnings per share (EPS) with the stock price.

Sandstorm Gold was able to increase its EPS by 64% per year over three years, pushing up the share price. This EPS growth is greater than the 12% average annual increase in the share price. We could therefore reasonably conclude that the market has cooled on the title.

You can see below how the EPS has evolved over time (find out the exact values ​​by clicking on the image).

TSX: SSL Earnings Per Share Growth October 11, 2021

We know Sandstorm Gold has improved its results over the past three years, but what does the future hold? You can see how his track record has strengthened (or weakened) over time in this free interactive graphics.

A different perspective

Investors in Sandstorm Gold have had a difficult year, with a total loss of 34%, compared to a market gain of around 31%. Even good stock prices drop sometimes, but we want to see improvements in the fundamentals of a company, before we get too interested. Longer-term investors would not be so unhappy, since they would have gained 5%, each year, over five years. The recent sell-off may be an opportunity, so it may be worth checking the fundamentals for signs of a long-term growth trend. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we discovered 2 warning signs for Sandstorm Gold which you should know before investing here.

We will like Sandstorm Gold better if we see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.

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

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.

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