When National American University Holdings Inc’s (NASDAQ:NAUH) announced its latest earnings (28 February 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were National American University Holdings’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not NAUH actually performed well. Below is a quick commentary on how I see NAUH has performed. Check out our latest analysis for National American University Holdings
How Well Did NAUH Perform?
I like to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique allows me to analyze different stocks on a more comparable basis, using the latest information. For National American University Holdings, its most recent trailing-twelve-month earnings is -US$12.24M, which, in comparison to last year’s level, has become more negative. Given that these values are somewhat short-term thinking, I have estimated an annualized five-year figure for National American University Holdings’s net income, which stands at US$1.47M.
We can further examine National American University Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years National American University Holdings has seen an annual decline in revenue of -5.30%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Inspecting growth from a sector-level, the US consumer services industry has been growing, albeit, at a muted single-digit rate of 5.05% in the prior twelve months, and 8.87% over the past five years. This means that any tailwind the industry is enjoying, National American University Holdings has not been able to leverage it as much as its average peer.
What does this mean?
National American University Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to predict what will occur going forward, and when. The most useful step is to examine company-specific issues National American University Holdings may be facing and whether management guidance has dependably been met in the past. You should continue to research National American University Holdings to get a better picture of the stock by looking at:
- Financial Health: Is NAUH’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 28 February 2018. This may not be consistent with full year annual report figures.
To help readers see pass 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.