J.W. Mays, Inc. (NASDAQ:MAYS): Has Recent Earnings Growth Beaten Long-Term Trend?
Understanding J.W. Mays, Inc.’s (NASDAQ:MAYS) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how J.W. Mays is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period.
View our latest analysis for J.W. Mays
How Did MAYS’s Recent Performance Stack Up Against Its Past?
MAYS’s trailing twelve-month earnings (from 31 October 2018) of US$2.5m has jumped 34% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 28%, indicating the rate at which MAYS is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only due to industry tailwinds, or if J.W. Mays has seen some company-specific growth.
In terms of returns from investment, J.W. Mays has fallen short of achieving a 20% return on equity (ROE), recording 4.7% instead. Furthermore, its return on assets (ROA) of 3.8% is below the US Real Estate industry of 5.8%, indicating J.W. Mays’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for J.W. Mays’s debt level, has declined over the past 3 years from 4.8% to 2.8%.
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? You should continue to research J.W. Mays to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for MAYS’s future growth? Take a look at our free research report of analyst consensus for MAYS’s outlook.
Financial Health: Are MAYS’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 October 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
