Once again I pose the question: Is private education specialist Curro Holdings growing its earnings fast enough to justify its heady market rating? Last week Curro, which is controlled by adventurous investment house PSG Group, issued a trading statement covering the half-year to end-June — disclosing an earnings range of 21.2c to 22.7c/share.That means the interim earnings will be between 46% and 56% higher than the 14.5c chalked up in the previous financial year. Going on profit performances for the past three financial years, it seems sensible to double Curro’s interim earnings to make a reasonable forecast for the full year.I’d suggest Curro shareholders would be disappointed if the company did not post 45c/share at bottom line for the year to end-December 2016. But let’s be generous and assume Curro actually posts 50c/share — remembering Curro’s Ebitda margin has shifted from 14% in 2012 to 21% in 2015 as more of its self-developed schools start shifting up the J-curve. That wo...
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