Shareholders in SSR Mining (TSE:SSRM) have lost 65%, as stock drops 7.1% this past week

If you love investing in stocks you're bound to buy some losers. Long term SSR Mining Inc. (TSE:SSRM) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 67% drop in the share price over that period. And more recent buyers are having a tough time too, with a drop of 65% in the last year. The last week also saw the share price slip down another 7.1%.

If the past week is anything to go by, investor sentiment for SSR Mining isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for SSR Mining

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over the three years that the share price declined, SSR Mining's earnings per share (EPS) dropped significantly, falling to a loss. Due to the loss, it's not easy to use EPS as a reliable guide to the business. But it's safe to say we'd generally expect the share price to be lower as a result!

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on SSR Mining's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 16% in the last year, SSR Mining shareholders lost 65%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. If you would like to research SSR Mining in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

But note: SSR 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 Canadian 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.