Leafheight's (ETR:LEI) profits and shareholder returns have been declining over the past three years, but the share price soared 15% last week.

good to see leifheit acti angel shaft (ETR:LEI) share price is up 15% in one week. But the fact remains that returns over the past three years have been disappointing. Sadly, the stock price has fallen 66% during this time. So this improvement may be a real relief to some people. Perhaps the company has changed its mind.

Last week was a relief for shareholders, but it's still in the red for the past three years, so let's take a look at whether the underlying business is causing the decline.

Check out our latest analysis for Leifheit

While there is no denying that markets are sometimes efficient, prices do not always reflect underlying company performance. By comparing earnings per share (EPS) and share price changes over time, we can learn how investor attitudes to a company have changed over time.

During the three years that the share price fell, Leafheit's earnings per share (EPS) fell by 48% each year. This EPS decline is more severe than the 30% compound annual share price decline. So despite the previous disappointment, shareholders should have some confidence that things will improve in the long term. This positive sentiment is also reflected in his comfortable PER of 85.84.

You can see below how EPS has changed over time (unveil the exact values ​​by clicking on the image).

Before buying or selling a stock, we always recommend taking a closer look at its historical growth trends, available here.

What will happen to the dividend?

When looking at return on investment, it is important to consider the following differences: Total shareholder return (TSR) and stock price return. Whereas the price/earnings ratio 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. Coincidentally, Leaf Height's TSR over the past three years was -62%, which is better than the share price return mentioned above. Therefore, the dividend paid by the company is total Shareholder returns.

different perspective

While the broader market has gained about 11% in the last year, Leaf Height shareholders have lost 5.0% (even including dividends). Even blue-chip stocks can see their share prices drop from time to time, and we like to see improvement in a company's fundamental metrics before we get too interested. Unfortunately, last year's performance ended on a down note, with shareholders facing a total annual loss of 4% over five years. Generally speaking, long-term stock price weakness can be a bad sign, but contrarian investors may want to research the stock in hopes of a turnaround. I think it's very interesting to look at stock price over the long term as an indicator of business performance. But to really gain insight, you need to consider other information as well. For example, we discovered that 3 warning signs for Leifheit What you need to know before investing here.

For people who like searching succeed in investing this free This list of growing companies with recent insider purchasing may be just the ticket.

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

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.