Should Weakness in Zimmer Biomet Holdings, Inc.'s (NYSE:ZBH) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Zimmer Biomet Holdings, Inc.'s (NYSE:ZBH) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
It is hard to get excited after looking at Zimmer Biomet Holdings' (NYSE:ZBH) recent performance, when its stock has declined 9.6% over the past month. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Particularly, we will be paying attention to Zimmer Biomet Holdings' ROE today.
看了Zimmer Biomet Holdings（紐約證券交易所代碼：ZBH）最近的表現，很難感到興奮，當時其股票在過去一個月中下跌了9.6％。但是，如果你密切關注，你可能會發現其關鍵財務指標看起來相當不錯，考慮到市場通常會獎勵更具彈性的長期基本面，這可能意味着該股有可能在長期內上漲。特別是，我們今天將關注Zimmer Biomet Holdings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. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
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。簡而言之，它衡量公司相對於股東權益的盈利能力。
How Is ROE Calculated?
ROE 是如何計算的？
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算：
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 Zimmer Biomet Holdings is:
因此，根據上述公式，Zimmer Biomet Holdings的投資回報率爲：
8.2% = US$1.0b ÷ US$12b (Based on the trailing twelve months to December 2023).
8.2% = 10億美元 ÷ 120億美元（基於截至2023年12月的過去十二個月）。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.08 in profit.
“回報” 是過去十二個月的稅後收入。將其概念化的一種方法是，公司每擁有1美元的股東資本，就會獲得0.08美元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
投資回報率與收益增長之間有什麼關係？
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，我們已經了解到，投資回報率衡量的是公司創造利潤的效率。根據公司選擇將多少利潤進行再投資或 “保留”，我們便能夠評估公司未來創造利潤的能力。假設其他一切保持不變，那麼與不一定具有這些特徵的公司相比，投資回報率和利潤保留率越高，公司的增長率就越高。
A Side By Side comparison of Zimmer Biomet Holdings' Earnings Growth And 8.2% ROE
Zimmer Biomet Holdings的收益增長和8.2％的投資回報率的並排比較
At first glance, Zimmer Biomet Holdings' ROE doesn't look very promising. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 11% either. However, we we're pleasantly surprised to see that Zimmer Biomet Holdings grew its net income at a significant rate of 35% in the last five years. Therefore, there could be other reasons behind this growth. Such as - high earnings retention or an efficient management in place.
乍一看，Zimmer Biomet Holdings的投資回報率看起來並不十分樂觀。一項快速的進一步研究表明，該公司的投資回報率與行業平均水平的11％相比也並不理想。但是，我們驚喜地看到，在過去五年中，Zimmer Biomet Holdings的淨收入大幅增長了35％。因此，這種增長背後可能還有其他原因。例如——高收益留存率或實行高效管理。
We then compared Zimmer Biomet Holdings' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 13% in the same 5-year period.
然後，我們將Zimmer Biomet Holdings的淨收入增長與該行業進行了比較，我們很高興地看到，與同期同期增長率爲13％的行業相比，該公司的增長數字更高。
Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). 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 ZBH? You can find out in our latest intrinsic value infographic research report.
收益增長是估值股票時要考慮的重要指標。對於投資者來說，重要的是要知道市場是否對公司的預期收益增長（或下降）進行了定價。然後，這可以幫助他們確定股票是爲光明的還是暗淡的未來準備的。市場是否對ZBH的未來前景進行了定價？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 Zimmer Biomet Holdings Making Efficient Use Of Its Profits?
Zimmer Biomet Holdings是否在有效利用其利潤？
Zimmer Biomet Holdings has a three-year median payout ratio of 42% (where it is retaining 58% of its income) which is not too low or not too high. So it seems that Zimmer Biomet Holdings is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered.
Zimmer Biomet Holdings的三年派息率中位數爲42％（保留了收入的58％），不太低或不太高。因此，Zimmer Biomet Holdings似乎正在高效地進行再投資，其收益將實現可觀的增長（如上所述），並支付的股息覆蓋範圍廣。
Additionally, Zimmer Biomet Holdings 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. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 12% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 17%, over the same period.
此外，Zimmer Biomet Holdings已在至少十年內派發了股息，這意味着該公司非常認真地與股東分享利潤。現有的分析師估計表明，該公司未來的派息率預計將在未來三年降至12％。因此，派息率的預期下降解釋了該公司同期的投資回報率預計將增長至17％。
Summary
摘要
In total, it does look like Zimmer Biomet Holdings has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. 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，Zimmer Biomet Holdings的業務看起來確實有一些積極的方面。儘管回報率很低，但該公司將其利潤的很大一部分再投資於業務這一事實無疑促進了其高收益增長。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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