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Is Weakness In A. O. Smith Corporation (NYSE:AOS) Stock A Sign That The Market Could Be Wrong Given Its Strong Financial Prospects?

Is Weakness In A. O. Smith Corporation (NYSE:AOS) Stock A Sign That The Market Could Be Wrong Given Its Strong Financial Prospects?

A. O. Smith公司(紐交所:AOS)股票下跌是否意味着市場可能對其強勁的財務前景存在誤解?
Simply Wall St ·  10/30 20:15

With its stock down 16% over the past month, it is easy to disregard A. O. Smith (NYSE:AOS). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Particularly, we will be paying attention to A. O. Smith's ROE today.

在過去一個月中,A. O. Smith(紐交所:AOS)的股價下跌了16%,很容易忽視它。然而,仔細查看其穩健的財務狀況可能會讓您重新考慮。鑑於基本面通常推動長期市場結果,這家公司值得關注。特別是,我們將關注A. O. Smith今天的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. 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 A. O. Smith is:

因此,根據上述公式,A. O. Smith的roe爲:

29% = US$561m ÷ US$1.9b (Based on the trailing twelve months to September 2024).

29% = 56100萬美元 ÷ 19億美元(根據截至2024年9月的過去十二個月)。

The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.29 in profit.

「收益」是指公司過去一年的收入。概念化的一種方式是,對於每1美元的股東資本,公司獲利0.29美元。

Why Is ROE Important For Earnings Growth?

ROE爲什麼對淨利潤增長很重要?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.

我們已經確定,ROE是公司未來賺錢能力的有效衡量標準。現在我們需要評估公司爲未來增長而再投資或「保留」的利潤。這樣,我們就能了解公司的增長潛力。一般而言,在其他條件相等的情況下,具有高淨資產收益率和利潤保留率的公司,比那些不具備這些特點的公司有更高的增長率。

A Side By Side comparison of A. O. Smith's Earnings Growth And 29% ROE

A. O. Smith的盈利增長及29%的roe的一次側-by-側比較

First thing first, we like that A. O. Smith has an impressive ROE. Second, a comparison with the average ROE reported by the industry of 18% also doesn't go unnoticed by us. Probably as a result of this, A. O. Smith was able to see a decent net income growth of 7.0% over the last five years.

首先,我們喜歡A. O. Smith有令人印象深刻的roe。 其次,與行業報告的18%平均roe進行比較,我們也看到了這一點。 可能正是由於這個原因,A. O. Smith在過去五年內的淨利潤增長率達到了7.0%。

We then compared A. O. Smith's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 17% in the same 5-year period, which is a bit concerning.

然後我們將A. O. Smith的淨利潤增長與行業進行了比較,發現公司的增長速度低於同一5年期間行業17%的平均增長率,這有點令人擔憂。

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NYSE:AOS Past Earnings Growth October 30th 2024
NYSE:AOS過去的盈利增長2024年10月30日

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

盈利增長是股票估值中的一個重要因素。投資者應該嘗試確定預期的盈利增長或下降,不管情況如何,是否已經在定價中。這樣做將有助於他們確定股票的未來前景是光明還是不祥。市場是否已經爲AOS的未來展望定價了?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 A. O. Smith Efficiently Re-investing Its Profits?

A. O. Smith是否有效地再投資其利潤?

A. O. Smith has a healthy combination of a moderate three-year median payout ratio of 35% (or a retention ratio of 65%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.

A. O. Smith擁有一個健康的組合,三年中位數支付比率爲35%(或保留比率爲65%),並且盈利增長相當可觀,這意味着公司一直在有效利用其利潤。

Additionally, A. O. Smith 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. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 29% of its profits over the next three years. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 29%.

此外,A. O. Smith至少已經連續支付股息十年以上,這意味着該公司非常認真地與股東分享利潤。通過研究最新的分析師一致數據,我們發現該公司預計在未來三年仍然會支付大約29%的利潤。因此,分析師預計公司未來的roe也不會有太大變化,預計roe爲29%。

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。

On the whole, we feel that A. O. Smith's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. 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.

總體而言,我們認爲A. O. Smith的表現相當不錯。具體來說,我們喜歡公司以高回報率重新投資其大部分利潤。當然,這導致公司利潤增長較快。話雖如此,最新的行業分析師預測顯示公司的利潤增長預計會放緩。要了解更多關於公司未來利潤增長預測的信息,請查看這份免費的分析師預測報告。

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。
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