The 12% return this week takes Coast Entertainment Holdings' (ASX:CEH) shareholders five-year gains to 83%

Coast Entertainment Holdings Limited (ASX:CEH) shareholders will doubtless be very grateful to see the share price up 37% in the last quarter.

The recent uptick of 12% could be a positive sign of things to come, so let's take a look at historical fundamentals.

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Coast Entertainment Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over half a decade Coast Entertainment Holdings reduced its trailing twelve month revenue by 28% for each year. That's definitely a weaker result than most pre-profit companies report. On the face of it we'd posit the share price fall of 7% compound, over five years is well justified by the fundamental deterioration. This loss means the stock shareholders are probably pretty annoyed. It is possible for businesses to bounce back but as Buffett says, 'turnarounds seldom turn'.

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

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Coast Entertainment Holdings

What About The Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Coast Entertainment Holdings' total shareholder return (TSR) and its share price return. 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. Coast Entertainment Holdings' TSR of 83% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

It's good to see that Coast Entertainment Holdings has rewarded shareholders with a total shareholder return of 12% in the last twelve months. However, the TSR over five years, coming in at 13% per year, is even more impressive. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Coast Entertainment Holdings has 1 warning sign we think you should be aware of.

Coast Entertainment Holdings is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian 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.