When Wonderla Holidays Limited (NSE:WONDERLA) released its most recent earnings update (31 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how Wonderla Holidays performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see WONDERLA has performed.

View our latest analysis for Wonderla Holidays

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Could WONDERLA beat the long-term trend and outperform its industry?

WONDERLA’s trailing twelve-month earnings (from 31 December 2018) of ₹521m has jumped 39% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -3.1%, indicating the rate at which WONDERLA is growing has accelerated. What’s enabled this growth? Let’s see if it is merely due to industry tailwinds, or if Wonderla Holidays has experienced some company-specific growth.

In terms of returns from investment, Wonderla Holidays has fallen short of achieving a 20% return on equity (ROE), recording 6.5% instead. Furthermore, its return on assets (ROA) of 5.3% is below the IN Hospitality industry of 5.3%, indicating Wonderla Holidays’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Wonderla Holidays’s debt level, has declined over the past 3 years from 17% to 8.7%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Wonderla Holidays has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Wonderla Holidays to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for WONDERLA’s future growth? Take a look at our free research report of analyst consensus for WONDERLA’s outlook.

2. Financial Health: Are WONDERLA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.