Examining Maintel Holdings Plc’s (LON:MAI) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess MAI’s latest performance announced on 31 December 2018 and weigh these figures against its longer term trend and industry movements.
Did MAI beat its long-term earnings growth trend and its industry?
MAI’s trailing twelve-month earnings (from 31 December 2018) of UK£2.0m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -8.9%, indicating the rate at which MAI is growing has accelerated. What’s enabled this growth? Let’s take a look at whether it is only owing to an industry uplift, or if Maintel Holdings has experienced some company-specific growth.
In terms of returns from investment, Maintel Holdings has fallen short of achieving a 20% return on equity (ROE), recording 9.3% instead. Furthermore, its return on assets (ROA) of 2.9% is below the GB Commercial Services industry of 5.0%, indicating Maintel Holdings’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Maintel Holdings’s debt level, has declined over the past 3 years from 44% to 10%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 70% to 115% over the past 5 years.
What does this mean?
Maintel Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Recent positive growth isn’t always indicative of a continued optimistic outlook. There may be factors that are influencing the industry as a whole, hence the high industry growth rate over the same time period. I recommend you continue to research Maintel Holdings to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MAI’s future growth? Take a look at our free research report of analyst consensus for MAI’s outlook.
- Financial Health: Are MAI’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.
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