Some Leader Environmental Technologies Limited (SGX:LS9) shareholders are probably rather concerned to see the share price fall 35% over the last three months. But that doesn't change the fact that the returns over the last five years have been pleasing. Its return of 93% has certainly bested the market return!

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

View our latest analysis for Leader Environmental Technologies

Given that Leader Environmental Technologies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 5 years Leader Environmental Technologies saw its revenue grow at 0.6% per year. Put simply, that growth rate fails to impress. The modest growth is probably broadly reflected in the share price, which is up 14%, per year over 5 years. The business could be one worth watching but we generally prefer faster revenue growth.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Leader Environmental Technologies' financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered Leader Environmental Technologies' share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for Leader Environmental Technologies shareholders, and that cash payout contributed to why its TSR of 205%, over the last 5 years, is better than the share price return.

A Different Perspective

It's good to see that Leader Environmental Technologies has rewarded shareholders with a total shareholder return of 3.7% in the last twelve months. Having said that, the five-year TSR of 25% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand Leader Environmental Technologies better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Leader Environmental Technologies (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.

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 Singaporean 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.