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Interested In Vail Resorts, Inc. (NYSE:MTN)? Here's How It Performed Recently

Simply Wall St

After reading Vail Resorts, Inc.'s (NYSE:MTN) most recent earnings announcement (31 October 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Vail Resorts's performance has been impacted by industry movements. In this article I briefly touch on my key findings.

See our latest analysis for Vail Resorts

Have MTN's earnings improved against past performances and the industry?

MTN's trailing twelve-month earnings (from 31 October 2019) of US$302m has increased by 0.7% 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 28%, indicating the rate at which MTN 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.

NYSE:MTN Income Statement, March 2nd 2020

In terms of returns from investment, Vail Resorts has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 7.4% exceeds the US Hospitality industry of 5.9%, indicating Vail Resorts has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Vail Resorts’s debt level, has increased over the past 3 years from 8.6% to 12%.

What does this mean?

While past data is useful, it 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 recommend you continue to research Vail Resorts to get a more holistic view of the stock by looking at:

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