Interested In TeamLease Services Limited (NSE:TEAMLEASE)? Here's What Its Recent Performance Looks Like
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Understanding how TeamLease Services Limited (NSE:TEAMLEASE) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how TeamLease Services is doing by comparing its latest earnings with its long-term trend as well as the performance of its professional services industry peers.
See our latest analysis for TeamLease Services
How TEAMLEASE fared against its long-term earnings performance and its industry
TEAMLEASE's trailing twelve-month earnings (from 31 March 2019) of ₹980m has jumped 33% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 35%, indicating the rate at which TEAMLEASE is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s going on with margins and whether the whole industry is facing the same headwind.
In terms of returns from investment, TeamLease Services has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 9.5% exceeds the IN Professional Services industry of 6.4%, indicating TeamLease Services has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for TeamLease Services’s debt level, has increased over the past 3 years from 7.6% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 5.0% to 2.0% over the past 5 years.
What does this mean?
TeamLease Services's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research TeamLease Services to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TEAMLEASE’s future growth? Take a look at our free research report of analyst consensus for TEAMLEASE’s outlook.
Financial Health: Are TEAMLEASE’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.
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 March 2019. 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.