Yahoo Finance Canlan Ice Sports Corp.'s (TSE:ICE) Earnings Dropped -16%, How Did It Fare Against The Industry?
Assessing Canlan Ice Sports Corp.'s (TSX:ICE) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess ICE's recent performance announced on 30 September 2019 and evaluate these figures to its longer term trend and industry movements.
Check out our latest analysis for Canlan Ice Sports
Was ICE's weak performance lately a part of a long-term decline?
ICE's trailing twelve-month earnings (from 30 September 2019) of CA$3.9m has declined by -16% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 47%, indicating the rate at which ICE is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s occurring with margins and if the entire industry is experiencing the hit as well.
In terms of returns from investment, Canlan Ice Sports has fallen short of achieving a 20% return on equity (ROE), recording 8.1% instead. Furthermore, its return on assets (ROA) of 5.4% is below the CA Hospitality industry of 6.2%, indicating Canlan Ice Sports's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Canlan Ice Sports’s debt level, has declined over the past 3 years from 5.9% to 5.8%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors affecting its business. I recommend you continue to research Canlan Ice Sports to get a more holistic view of the stock by looking at:
Financial Health: Are ICE’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.
Valuation: What is ICE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ICE is currently mispriced by the market.
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 30 September 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.
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