Yahoo Finance Should You Be Concerned With Canlan Ice Sports Corp.'s (TSE:ICE) -11% Earnings Drop?
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Measuring Canlan Ice Sports Corp.'s (TSE:ICE) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ICE's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
See our latest analysis for Canlan Ice Sports
How Did ICE's Recent Performance Stack Up Against Its Past?
ICE's trailing twelve-month earnings (from 31 March 2019) of CA$4.0m has declined by -11% 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 40%, indicating the rate at which ICE is growing has slowed down. Why could this be happening? Let's examine what's transpiring with margins and if the rest of the industry is feeling the heat.
In terms of returns from investment, Canlan Ice Sports has fallen short of achieving a 20% return on equity (ROE), recording 7.8% instead. Furthermore, its return on assets (ROA) of 4.8% is below the CA Hospitality industry of 6.0%, indicating Canlan Ice Sports's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Canlan Ice Sports’s debt level, has increased over the past 3 years from 5.8% to 6.4%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. I recommend you continue to research Canlan Ice Sports to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ICE’s future growth? Take a look at our free research report of analyst consensus for ICE’s outlook.
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.
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.
