share_log

Should Weakness in Worthington Steel, Inc.'s (NYSE:WS) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?

Should Weakness in Worthington Steel, Inc.'s (NYSE:WS) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?

Worthington Steel, Inc.(紐交所:WS)的股價走弱,是否意味着市場會根據良好的財務狀況調整股價?
Simply Wall St ·  10/18 00:27

With its stock down 5.2% over the past three months, it is easy to disregard Worthington Steel (NYSE:WS). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Worthington Steel's ROE in this article.

沃特世股價在過去三個月下跌了5.2%,很容易忽視紐交所的Worthington Steel(NYSE:WS)。然而,股價通常受到公司長期財務狀況的推動,在這種情況下看起來相當可觀。具體來說,我們決定在本文中研究Worthington Steel的roe。

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.

股本回報率或roe是一項關鍵指標,用於評估公司管理層使用公司資本的效率。換句話說,它揭示了公司將股東的投資轉化爲利潤的成功。

How Do You Calculate Return On Equity?

怎樣計算ROE?

ROE can be calculated by using the formula:

淨資產收益率可以使用以下公式進行計算:

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 Worthington Steel is:

據上述公式可知,Worthington Steel的roe爲:

12% = US$140m ÷ US$1.1b (Based on the trailing twelve months to August 2024).

12% = US$14000萬 ÷ US$11億(基於截至2024年8月的最近十二個月)。

The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.12.

「回報」是過去十二個月的利潤。 因此,這意味着針對其股東投資的每1美元,公司可以獲得0.12美元的利潤。

What Has ROE Got To Do With Earnings Growth?

roe與盈利增長有何關係?

So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.

迄今爲止,我們已經了解到roe是公司盈利能力的一種衡量方式。根據公司重新投資或保留這些利潤的數量,以及有效程度,我們能夠評估公司的盈利增長潛力。一般來說,其他條件相同的情況下,具有高roe和盈利保留能力的公司比沒有這些特徵的公司的增長率更高。

Worthington Steel's Earnings Growth And 12% ROE

沃特世鋼鐵的盈利增長和12%的roe

At first glance, Worthington Steel seems to have a decent ROE. Especially when compared to the industry average of 9.8% the company's ROE looks pretty impressive. Needless to say, we are quite surprised to see that Worthington Steel's net income shrunk at a rate of 8.4% over the past five years. We reckon that there could be some other factors at play here that are preventing the company's growth. For example, it could be that the company has a high payout ratio or the business has allocated capital poorly, for instance.

乍一看,沃特世鋼鐵的roe似乎還不錯。尤其是與行業平均值9.8%相比,公司的roe看起來相當令人印象深刻。毋庸置疑,我們對發現沃特世鋼鐵的淨利潤在過去五年以8.4%的速度下降感到相當驚訝。我們認爲這裏可能有一些其他因素在起作用,阻礙了公司的增長。例如,公司的分紅派息率可能較高,或者企業可能在資本配置方面出現問題等。

That being said, we compared Worthington Steel's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 23% in the same 5-year period.

話雖如此,我們將沃特世鋼鐵的表現與行業進行了比較,當我們發現公司的盈利在縮水的同時,行業在同樣的5年期內將盈利增長了23%時,我們感到擔憂。

big
NYSE:WS Past Earnings Growth October 17th 2024
紐交所:WS 過去的盈利增長 2024年10月17日

Earnings growth is a huge factor in stock valuation. 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. Has the market priced in the future outlook for WS? You can find out in our latest intrinsic value infographic research report.

盈利增長是股票估值的一個重要因素。投資者了解市場是否已經將公司預期的盈利增長(或下降)價格計入其中,對於判斷股票是否走向清澈的藍色水域還是混濁的水域至關重要。市場是否已經爲WS的未來前景定價?您可以在我們最新的內在價值信息圖研究報告中找到答案。

Is Worthington Steel Efficiently Re-investing Its Profits?

Worthington Steel是否有效地再投資其利潤?

Worthington Steel's low three-year median payout ratio of 10% (implying that it retains the remaining 90% of its profits) comes as a surprise when you pair it with the shrinking earnings. The low payout should mean that the company is retaining most of its earnings and consequently, should see some growth. So there could be some other explanations in that regard. For example, the company's business may be deteriorating.

當您將Worthington Steel低於三年中值的10%的派息比率(暗示其保留其利潤的剩餘90%)與收益下降相結合時,會感到驚訝。低派息比率意味着公司保留了大部分利潤,因此可能會看到一些增長。因此,可能有一些其他解釋。例如,公司的業務可能正在惡化。

Only recently, Worthington Steel stated paying a dividend. This likely means that the management might have concluded that its shareholders have a strong preference for dividends. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 18% over the next three years.

最近,Worthington Steel開始支付股利。這很可能意味着管理層可能得出結論,其股東更傾向於股利。通過查看當前分析師一致的數據,我們可以看到公司未來三年的派息比率預計將上升至18%。

Conclusion

結論

Overall, we feel that Worthington Steel certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.

總的來說,我們認爲沃特世鋼鐵確實有一些值得考慮的積極因素。然而,低盈利增長率有點令人擔憂,尤其是考慮到該公司具有很高的回報率,並正在將其利潤的一大部分再投資。從目前的情況看,可能有一些其他因素,並非業務可以控制的,導致了增長的阻礙。話雖如此,從當前的分析師預估來看,我們發現該公司的盈利增長率有望實現巨大改善。要了解更多關於該公司的最新分析師預測,請查看該公司的分析師預測可視化。

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。
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。

譯文內容由第三人軟體翻譯。


以上內容僅用作資訊或教育之目的,不構成與富途相關的任何投資建議。富途竭力但無法保證上述全部內容的真實性、準確性和原創性。
    搶先評論