Declining Stock and Solid Fundamentals: Is The Market Wrong About Commercial Metals Company (NYSE:CMC)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Commercial Metals Company (NYSE:CMC)?
With its stock down 9.0% over the past month, it is easy to disregard Commercial Metals (NYSE:CMC). However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Commercial Metals' ROE in this article.
由于其股价在过去一个月中下跌了9.0％，很容易忽视商业金属（纽约证券交易所代码：CMC）。但是，股票价格通常由公司的长期财务业绩驱动，在这种情况下，这看起来很有希望。具体而言，我们决定在本文中研究商业金属的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。简而言之，它用于评估公司相对于其股权资本的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率？
The formula for return on equity is:
股本回报率的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营业务）÷ 股东权益
So, based on the above formula, the ROE for Commercial Metals is:
因此，根据上述公式，商业金属的投资回报率为：
16% = US$680m ÷ US$4.2b (Based on the trailing twelve months to February 2024).
16% = 6.8亿美元 ÷ 42亿美元（基于截至2024年2月的过去十二个月）。
The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.16.
“回报” 是指公司去年的收益。因此，这意味着公司每投资1美元，就会产生0.16美元的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要？
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前为止，我们已经了解到，投资回报率是衡量公司盈利能力的指标。现在，我们需要评估公司再投资或 “保留” 了多少利润以用于未来的增长，从而使我们对公司的增长潜力有所了解。一般而言，在其他条件相同的情况下，股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。
Commercial Metals' Earnings Growth And 16% ROE
商业金属的收益增长和16％的投资回报率
To start with, Commercial Metals' ROE looks acceptable. Especially when compared to the industry average of 10.0% the company's ROE looks pretty impressive. This probably laid the ground for Commercial Metals' significant 34% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
首先，商业金属的投资回报率似乎可以接受。特别是与行业平均水平的10.0％相比，该公司的投资回报率看起来相当可观。这可能为商业金属在过去五年中实现34％的显著净收入增长奠定了基础。我们认为，可能还有其他方面对公司的收益增长产生积极影响。例如——高收益留存率或实行高效管理。
We then compared Commercial Metals' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 23% in the same 5-year period.
然后，我们将商业金属的净收入增长与该行业进行了比较，我们很高兴地看到，与该行业相比，该公司的增长数字更高，该行业在同期的5年增长率为23％。
Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Commercial Metals is trading on a high P/E or a low P/E, relative to its industry.
收益增长是对股票进行估值时要考虑的重要指标。对于投资者来说，重要的是要知道市场是否对公司的预期收益增长（或下降）进行了定价。通过这样做，他们将知道股票是走向清澈的蓝色海水还是沼泽水域在等着呢。衡量预期收益增长的一个很好的指标是市盈率，它根据收益前景决定了市场愿意为股票支付的价格。因此，您可能需要检查商业金属相对于其行业是高市盈率还是低市盈率。
Is Commercial Metals Using Its Retained Earnings Effectively?
商业金属能否有效地使用其留存收益？
Commercial Metals has a really low three-year median payout ratio of 8.7%, meaning that it has the remaining 91% left over to reinvest into its business. So it looks like Commercial Metals is reinvesting profits heavily to grow its business, which shows in its earnings growth.
商业金属的三年派息率中位数非常低，为8.7％，这意味着其余的91％可以再投资于其业务。因此，看来商业金属正在将利润进行大量再投资以发展其业务，这体现在其收益增长上。
Besides, Commercial Metals has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 16% over the next three years. Therefore, the expected rise in the payout ratio explains why the company's ROE is expected to decline to 11% over the same period.
此外，商业金属已经派发股息至少十年或更长时间。这表明该公司致力于与股东分享利润。从目前的分析师共识数据来看，我们可以看出，该公司的未来派息率预计将在未来三年内升至16％。因此，预期的派息率上升解释了为什么该公司的投资回报率预计将在同期下降至11％。
Conclusion
结论
On the whole, we feel that Commercial Metals' performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总的来说，我们认为商业金属的表现相当不错。特别是，我们喜欢该公司对其业务进行大量再投资，而且回报率很高。毫不奇怪，这带来了令人印象深刻的收益增长。话虽如此，在研究最新的分析师预测时，我们发现，尽管该公司过去的收益有所增长，但分析师预计其未来收益将萎缩。要了解有关公司未来收益增长预测的更多信息，请查看这份关于分析师预测的免费报告，以了解更多信息。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论，我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议，也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意，我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之，华尔街没有持有任何上述股票的头寸。
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