Are Robust Financials Driving The Recent Rally In Eagle Materials Inc.'s (NYSE:EXP) Stock?
Are Robust Financials Driving The Recent Rally In Eagle Materials Inc.'s (NYSE:EXP) Stock?
Eagle Materials' (NYSE:EXP) stock is up by a considerable 25% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study Eagle Materials' ROE in this article.
在過去三個月中，鷹材料（紐約證券交易所代碼：EXP）的股票上漲了25％。鑑於從長遠來看，市場會獎勵強勁的財務狀況，我們想知道在這種情況下是否如此。具體而言，我們決定在本文中研究 Eagle Materials 的投資回報率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。換句話說，它揭示了公司成功地將股東投資轉化爲利潤。
How Is ROE Calculated?
ROE 是如何計算的？
The formula for ROE is:
ROE 的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Eagle Materials is:
因此，根據上述公式，Eagle Materials 的投資回報率爲：
38% = US$501m ÷ US$1.3b (Based on the trailing twelve months to December 2023).
38% = 5.01億美元 ÷ 13億美元（基於截至2023年12月的過去十二個月）。
The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.38 in profit.
“回報” 是過去十二個月的利潤。這意味着，每獲得價值1美元的股東權益，該公司就會產生0.38美元的利潤。
What Has ROE Got To Do With Earnings Growth?
投資回報率與收益增長有什麼關係？
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. 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，投資回報率是衡量公司未來收益的有效盈利指標。現在，我們需要評估公司再投資或 “保留” 了多少利潤以用於未來的增長，從而使我們對公司的增長潛力有所了解。假設其他條件都一樣，與功能不相同的公司相比，具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。
Eagle Materials' Earnings Growth And 38% ROE
Eagle Materials的收益增長和38％的投資回報率
First thing first, we like that Eagle Materials has an impressive ROE. Secondly, even when compared to the industry average of 14% the company's ROE is quite impressive. Under the circumstances, Eagle Materials' considerable five year net income growth of 25% was to be expected.
首先，我們喜歡 Eagle Materials 具有令人印象深刻的投資回報率。其次，即使與行業平均水平的14％相比，該公司的投資回報率也相當可觀。在這種情況下，Eagle Materials的五年淨收入可觀增長25％，這是意料之中的。
As a next step, we compared Eagle Materials' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 18%.
下一步，我們將Eagle Materials的淨收入增長與該行業進行了比較，令人高興的是，我們發現該公司的增長高於18％的行業平均增長。
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. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for EXP? You can find out in our latest intrinsic value infographic research report.
收益增長是股票估值的重要因素。無論如何，投資者應設法確定預期的收益增長或下降是否已計入其中。然後，這可以幫助他們確定股票是爲光明還是暗淡的未來而佈局。市場是否爲EXP的未來前景進行了定價？你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 Eagle Materials Making Efficient Use Of Its Profits?
Eagle Materials 是否在有效利用其利潤？
Eagle Materials' three-year median payout ratio to shareholders is 7.8%, which is quite low. This implies that the company is retaining 92% of its profits. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number.
Eagle Materials的三年股東派息率中位數爲7.8％，相當低。這意味着該公司保留了92％的利潤。因此，管理層似乎正在將利潤大量再投資以發展業務，這反映在其收益增長數字上。
Besides, Eagle Materials has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 5.8% over the next three years. However, the company's ROE is not expected to change by much despite the lower expected payout ratio.
此外，Eagle Materials派發股息已有至少十年或更長時間。這表明該公司致力於與股東分享利潤。在研究了分析師的最新共識數據後，我們發現該公司的未來派息率預計將在未來三年降至5.8％。但是，儘管預期的派息率較低，但該公司的投資回報率預計不會有太大變化。
Summary
摘要
Overall, we are quite pleased with Eagle Materials' performance. 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 substantial 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.
總的來說，我們對 Eagle Materials 的表現非常滿意。具體而言，我們喜歡該公司以高回報率再投資其利潤的很大一部分。當然，這導致該公司的收益大幅增長。話雖如此，最新的行業分析師預測顯示，該公司的收益增長預計將放緩。要了解有關公司未來收益增長預測的更多信息，請查看這份關於分析師預測的免費報告，以了解更多信息。
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