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After looking at Canterbury Park Holding Corporation's (NASDAQ:CPHC) latest earnings announcement (31 December 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.
How Did CPHC's Recent Performance Stack Up Against Its Past?
CPHC's trailing twelve-month earnings (from 31 December 2018) of US$5.7m has jumped 40% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 24%, indicating the rate at which CPHC is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is solely attributable to industry tailwinds, or if Canterbury Park Holding has experienced some company-specific growth.
In terms of returns from investment, Canterbury Park Holding has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 9.2% exceeds the US Hospitality industry of 6.5%, indicating Canterbury Park Holding has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Canterbury Park Holding’s debt level, has increased over the past 3 years from 8.2% to 11%.
What does this mean?
Though Canterbury Park Holding's past data is helpful, it is only one aspect of my investment thesis. While Canterbury Park Holding has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Canterbury Park Holding to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CPHC’s future growth? Take a look at our free research report of analyst consensus for CPHC’s outlook.
- Financial Health: Are CPHC’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 December 2018. 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 email@example.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.