AngloGold Ashanti (NYSE:AU) jumps 9.6% this week, though earnings growth is still tracking behind three-year shareholder returns
For us, stock picking is in large part the hunt for the truly magnificent stocks. You won't get it right every time...
For us, stock picking is in large part the hunt for the truly magnificent stocks. You won't get it right every time, but when you do, the returns can be truly splendid. One bright shining star stock has been AngloGold Ashanti plc (NYSE:AU), which is 427% higher than three years ago. On top of that, the share price is up 31% in about a quarter. Since it's been a strong week for AngloGold Ashanti shareholders, let's have a look at trend of the longer term fundamentals. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine.
By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During three years of share price growth, AngloGold Ashanti achieved compound earnings per share growth of 69% per year. We don't think it is entirely coincidental that the EPS growth is reasonably close to the 74% average annual increase in the share price. This observation indicates that the market's attitude to the business hasn't changed all that much. Rather, the share price has approximately tracked EPS growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
NYSE:AU Earnings Per Share Growth February 9th 2026 It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on AngloGold Ashanti's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.
Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for AngloGold Ashanti the TSR over the last 3 years was 467%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective We're pleased to report that AngloGold Ashanti shareholders have received a total shareholder return of 225% over one year.
And that does include the dividend. That's better than the annualised return of 37% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand AngloGold Ashanti better, we need to consider many other factors. Even so, be aware that AngloGold Ashanti is showing 2 warning signs in our investment analysis , you should know about... Story Continues If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.