Want To Invest In China Maple Leaf Educational Systems Limited (HKG:1317)? Here's How It Performed Lately
Examining China Maple Leaf Educational Systems Limited's (SEHK:1317) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess 1317's latest performance announced on 31 August 2019 and compare these figures to its longer term trend and industry movements.
See our latest analysis for China Maple Leaf Educational Systems
How Did 1317's Recent Performance Stack Up Against Its Past?
1317's trailing twelve-month earnings (from 31 August 2019) of CN¥657m has jumped 21% 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 1317 is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and whether the entire industry is experiencing the hit as well.
In terms of returns from investment, China Maple Leaf Educational Systems has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 9.7% exceeds the HK Consumer Services industry of 7.1%, indicating China Maple Leaf Educational Systems has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for China Maple Leaf Educational Systems’s debt level, has declined over the past 3 years from 13% to 11%.
What does this mean?
China Maple Leaf Educational Systems'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 China Maple Leaf Educational Systems to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for 1317’s future growth? Take a look at our free research report of analyst consensus for 1317’s outlook.
Financial Health: Are 1317’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 August 2019. This may not be consistent with full year annual report figures.
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.
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. Thank you for reading.