Ennis, Inc.'s (NYSE:EBF) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
Ennis, Inc.'s (NYSE:EBF) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
With its stock down 12% over the past week, it is easy to disregard Ennis (NYSE:EBF). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Ennis' ROE today.
在過去一週,股價下跌了12%,很容易忽視紐交所的恩尼斯(EBF)。然而,股價通常受到公司長期財務狀況的影響,在這種情況下看起來相當可觀。特別是,我們將關注恩尼斯的roe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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東權益回報率(roe)是一種關鍵指標,用於評估公司管理層如何有效利用公司資本。更簡單地說,它衡量了公司相對股東權益的盈利能力。
How Is ROE Calculated?
淨資產收益率怎麼計算?
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 Ennis is:
因此,根據上述公式,恩尼斯的ROE爲:
11% = US$41m ÷ US$358m (Based on the trailing twelve months to August 2024).
11% = 4.1億美元 ÷ 35.8億美元(根據截至2024年8月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.11 in profit.
'回報'指的是公司過去一年的收益。這意味着公司每1美元股東權益的價值,公司產生了0.11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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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 all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
我們已經確定,ROE是一個公司未來盈利的高效測量工具。基於公司選擇重新投資或「保留」多少利潤,我們可以評估公司未來產生利潤的能力。假設其他條件相同,具有更高股本回報率和更高利潤保留比的公司通常增長速度較高,而沒有相同特徵的公司則通常增長速度較低。
Ennis' Earnings Growth And 11% ROE
Ennis' Earnings Growth And 11% ROE
At first glance, Ennis seems to have a decent ROE. Even when compared to the industry average of 11% the company's ROE looks quite decent. This certainly adds some context to Ennis' moderate 7.7% net income growth seen over the past five years.
At first glance, Ennis seems to have a decent ROE. Even when compared to the industry average of 11% the company's ROE looks quite decent. This certainly adds some context to Ennis' moderate 7.7% net income growth seen over the past five years.
We then compared Ennis' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 13% in the same 5-year period, which is a bit concerning.
We then compared Ennis' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 13% in the same 5-year period, which is a bit concerning.
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Ennis''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
評估一家公司的價值的基礎很大程度上取決於其利潤增長。投資者需要判斷的下一步是,預期的利潤增長,或者缺乏利潤增長,是否已經融入股價中。這樣做將幫助他們判斷股票的未來是看漲還是看跌。如果您想了解恩尼斯的估值,請查看其市盈率相對於行業的比較。
Is Ennis Using Its Retained Earnings Effectively?
恩尼斯是否有效利用留存收益?
The high three-year median payout ratio of 62% (or a retention ratio of 38%) for Ennis suggests that the company's growth wasn't really hampered despite it returning most of its income to its shareholders.
恩尼斯高達62%的三年中位數支付比率(或留存比率爲38%)表明,儘管公司大部分收益返還給股東,但其增長並未受到真正阻礙。
Additionally, Ennis has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.
此外,恩尼斯在至少十年的時間內支付股息,這意味着該公司非常重視與股東分享利潤。
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
Overall, we feel that Ennis certainly does have some positive factors to consider. The company has grown its earnings moderately as previously discussed. Still, the high ROE could have been even more beneficial to investors had the company been reinvesting more of its profits. As highlighted earlier, the current reinvestment rate appears to be quite low. So far, we've only made a quick discussion around the company's earnings growth. To gain further insights into Ennis' past profit growth, check out this visualization of past earnings, revenue and cash flows.
總體來說,我們認爲恩尼斯確實有一些需要考慮的積極因素。該公司的盈利已經逐漸增長,正如之前討論的那樣。但是,如果公司再投資的利潤更多,高roe對投資者可能會更有利。正如之前強調的那樣,目前再投資率似乎相當低。到目前爲止,我們只是簡單討論了該公司的盈利增長。要深入了解恩尼斯過去的利潤增長,請查看這些過去盈利,營業收入和現金流的可視化。
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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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