Are Robust Financials Driving The Recent Rally In Meritage Homes Corporation's (NYSE:MTH) Stock?
Are Robust Financials Driving The Recent Rally In Meritage Homes Corporation's (NYSE:MTH) Stock?
Meritage Homes' (NYSE:MTH) stock is up by a considerable 12% over the past three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to Meritage Homes' ROE today.
在過去的三個月裏,meritage homes(紐交所:mth)的股票上漲了12%。由於市場通常會爲一家公司的長期基本面付費,我們決定研究該公司的關鍵業務指標,以確定它們是否可能對市場產生影響。特別是,我們將關注meritage homes(紐交所:mth)的roe(淨資產收益率)今天。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股本回報率或roe是評估公司管理層如何有效利用公司資本的關鍵指標。簡而言之,ROE顯示每美元股東投資所產生的利潤。
How Do You Calculate Return On Equity?
怎樣計算ROE?
The formula for ROE is:
roe的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤(從持續經營中獲得)÷ 股東權益
So, based on the above formula, the ROE for Meritage Homes is:
因此,根據上述公式,meritage homes(紐交所:mth)的roe(淨資產收益率)爲:
17% = US$838m ÷ US$4.9b (Based on the trailing twelve months to June 2024).
17% = 83800萬美元 ÷ 490億美元(基於截至2024年6月的過去十二個月)。
The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.17.
「回報」是年利潤。這意味着,對於每1美元的股東投資,公司可以獲得0.17美元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
ROE與盈利增長之間的關係是什麼?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經知道ROE測量公司如何高效地生成利潤。基於公司選擇重新投資或「保留」其利潤的比例,我們能夠評估公司未來生成利潤的能力。假設其他所有因素保持不變,則ROE和利潤保留率越高,公司的增長率也越高,與不一定具備這些特徵的公司相比。
A Side By Side comparison of Meritage Homes' Earnings Growth And 17% ROE
對meritage homes的淨利潤增長和17%的roe進行了並列對比
At first glance, Meritage Homes seems to have a decent ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 15%. This probably goes some way in explaining Meritage Homes' significant 24% net income growth over the past five years amongst other factors. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
乍一看,meritage homes的roe似乎還不錯。與行業相比,我們發現平均行業roe也在15%左右。這可能在一定程度上解釋了過去五年meritage homes顯著的24%淨利潤增長,其中可能還有其他因素。我們認爲這裏也可能涉及其他因素,比如 - 高額收益留存或者高效的管理團隊。
As a next step, we compared Meritage Homes' net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 22% in the same period.
作爲下一步,我們將meritage homes的淨利潤增長與行業進行了比較,發現該公司在同一時期的增長數據與行業平均增長率22%相當。
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Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. 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 Meritage Homes is trading on a high P/E or a low P/E, relative to its industry.
當評估股票時,盈利增長是一個重要的指標。投資者應該嘗試確定預期的盈利增長或下降是否已經被定價進去。這樣做將幫助他們確定股票的未來是看好還是看淡。預期盈利增長的一個良好指標是市盈率,它根據股票的盈利前景決定市場願意支付的價格。所以,您可能想要查看meritage homes的市盈率高還是低,相對於其所在行業。
Is Meritage Homes Efficiently Re-investing Its Profits?
meritage homes是否有效地將利潤再投資?
Meritage Homes' three-year median payout ratio to shareholders is 4.5%, which is quite low. This implies that the company is retaining 95% of its profits. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.
meritage homes三年來股東的中位數派息比率爲4.5%,相當低。這意味着公司保留了95%的利潤。這表明管理層將大部分利潤重新投資於業務的發展,正如公司所見的增長所表明的那樣。
While Meritage Homes has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 17% over the next three years. Consequently, the higher expected payout ratio explains the decline in the company's expected ROE (to 14%) over the same period.
儘管meritage homes的盈利增長,但其最近才開始支付股息。很可能是公司決定通過分紅來打動新老股東。我們最新的分析師數據顯示,未來三年公司的派息比率預計將上升到17%。因此,預期派息比率的提高解釋了公司在同期間預期roe下降至14%。
Conclusion
結論
In total, we are pretty happy with Meritage Homes' performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總體來說,我們對Meritage Homes的業績非常滿意。特別是,在公司大力投資的同時,高收益率也帶來了可觀的收益增長。然而,我們注意到,根據目前的分析師預測,儘管公司過去的盈利增長,分析師們預計其未來的盈利將會收縮。這些分析師的預期是基於對整個行業的廣泛預期,還是基於公司的基本面?點擊此處查看我們對該公司的分析師預測頁面。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
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