Investors in Janison Education Group (ASX:JAN) have seen returns of 20% over the past three years
You can receive the average market return by buying a low-cost index fund. But if you pick the right individual stocks, you could make more than that. For example, the Janison Education Group Limited (ASX:JAN) share price is up 20% in the last three years, slightly above the market return. Zooming in, the stock is up just 1.1% in the last year.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
Check out our latest analysis for Janison Education Group
Because Janison Education Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last three years Janison Education Group has grown its revenue at 19% annually. That's a very respectable growth rate. While the share price has done well, compounding at 6% yearly, over three years, that move doesn't seem over the top. Of course, valuation is quite sensitive to the rate of growth. Keep in mind that the strength of the balance sheet impacts the options open to the company.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Janison Education Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Janison Education Group shareholders gained a total return of 1.1% during the year. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 1.9% per year for five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. It's always interesting to track share price performance over the longer term. But to understand Janison Education Group better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Janison Education Group .
Of course Janison Education Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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