Aktor Societe Anonyme Holding Company Technical and Energy Projects (ATH:AKTR) shareholder returns have been fantastic, earning 709% in 5 years

Long term investing can be life changing when you buy and hold the truly great businesses. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the Aktor Societe Anonyme Holding Company Technical and Energy Projects (ATH:AKTR) share price has soared 557% over five years. If that doesn't get you thinking about long term investing, we don't know what will. On top of that, the share price is up 27% in about a quarter. Anyone who held for that rewarding ride would probably be keen to talk about it.

The past week has proven to be lucrative for Aktor Societe Anonyme Holding Company Technical and Energy Projects investors, so let's see if fundamentals drove the company's five-year performance.

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Given that Aktor Societe Anonyme Holding Company Technical and Energy Projects only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 5 years Aktor Societe Anonyme Holding Company Technical and Energy Projects saw its revenue grow at 47% per year. Even measured against other revenue-focussed companies, that's a good result. Arguably, this is well and truly reflected in the strong share price gain of 46%(per year) over the same period. Despite the strong run, top performers like Aktor Societe Anonyme Holding Company Technical and Energy Projects have been known to go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.

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

If you are thinking of buying or selling Aktor Societe Anonyme Holding Company Technical and Energy Projects stock, you should check out this FREE detailed report on its balance sheet.

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between Aktor Societe Anonyme Holding Company Technical and Energy Projects' total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Aktor Societe Anonyme Holding Company Technical and Energy Projects hasn't been paying dividends, but its TSR of 709% exceeds its share price return of 557%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

It's nice to see that Aktor Societe Anonyme Holding Company Technical and Energy Projects shareholders have received a total shareholder return of 77% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 52% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. For example, we've discovered 2 warning signs for Aktor Societe Anonyme Holding Company Technical and Energy Projects that you should be aware of before investing here.

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