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Rocky Brands, Inc.'s (NASDAQ:RCKY) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?

Rocky Brands, Inc.'s (NASDAQ:RCKY) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?

Rocky Brands, Inc.”s(納斯達克股票代碼:RCKY)股票上漲但財務狀況看起來模棱兩可:勢頭會持續嗎?
Simply Wall St ·  05/03 21:08

Rocky Brands' (NASDAQ:RCKY) stock is up by a considerable 28% over the past week. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Specifically, we decided to study Rocky Brands' ROE in this article.

洛基布蘭德斯(納斯達克股票代碼:RCKY)的股票在過去一週上漲了28%。但是該公司的關鍵財務指標似乎各不相同,這使我們質疑該公司目前的股價勢頭是否可以維持。具體而言,我們決定在本文中研究洛基布蘭德斯的投資回報率。

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits.

投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。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 Rocky Brands is:

因此,根據上述公式,洛基品牌的投資回報率爲:

5.9% = US$13m ÷ US$225m (Based on the trailing twelve months to March 2024).

5.9% = 1300萬美元 ÷ 2.25億美元(基於截至2024年3月的過去十二個月)。

The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.06.

“回報” 是企業在過去一年中獲得的收入。因此,這意味着其股東每投資1美元,公司就會產生0.06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?

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.

到目前爲止,我們已經了解到,投資回報率是衡量公司盈利能力的指標。然後,我們能夠評估公司的收益增長潛力,具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。一般而言,在其他條件相同的情況下,股本回報率和利潤留存率高的公司的增長率要高於不具有這些屬性的公司。

Rocky Brands' Earnings Growth And 5.9% ROE

洛基品牌的收益增長和5.9%的投資回報率

On the face of it, Rocky Brands' ROE is not much to talk about. Next, when compared to the average industry ROE of 13%, the company's ROE leaves us feeling even less enthusiastic. Therefore, it might not be wrong to say that the five year net income decline of 3.5% seen by Rocky Brands was probably the result of it having a lower ROE. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For instance, the company has a very high payout ratio, or is faced with competitive pressures.

從表面上看,洛基·布蘭德斯的投資回報率沒什麼好談的。接下來,與13%的行業平均投資回報率相比,該公司的投資回報率使我們感到不那麼熱情。因此,說洛基品牌五年淨收入下降3.5%可能是其投資回報率下降的結果,這可能沒有錯。我們認爲,可能還有其他方面對公司的盈利前景產生負面影響。例如,該公司的派息率非常高,或者面臨競爭壓力。

However, when we compared Rocky Brands' growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 15% in the same period. This is quite worrisome.

但是,當我們將Rocky Brands的增長與該行業的增長進行比較時,我們發現,儘管該公司的收益一直在萎縮,但該行業同期的收益增長了15%。這非常令人擔憂。

past-earnings-growth
NasdaqGS:RCKY Past Earnings Growth May 3rd 2024
納斯達克股票代碼:RCKY 過去的收益增長 2024 年 5 月 3 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. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Rocky Brands''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

收益增長是股票估值的重要因素。無論情況如何,投資者都應設法確定預期的收益增長或下降是否已計入其中。通過這樣做,他們將知道股票是走向清澈的藍色海水還是沼澤水域在等着呢。如果你想知道洛基品牌的估值,可以看看這個衡量其市盈率與行業相比的指標。

Is Rocky Brands Using Its Retained Earnings Effectively?

洛基品牌是否有效地使用了其留存收益?

Rocky Brands' low three-year median payout ratio of 22% (or a retention ratio of 78%) over the last three years should mean that the company is retaining most of its earnings to fuel its growth but the company's earnings have actually shrunk. 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.

洛基布蘭德斯在過去三年中低的三年派息率中位數爲22%(或78%的留存率),這應該意味着該公司保留了大部分收益來推動增長,但該公司的收益實際上已經萎縮。低支出應意味着該公司保留了大部分收益,因此應該會出現一些增長。因此,在這方面可能還有其他解釋。例如,公司的業務可能正在惡化。

In addition, Rocky Brands has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.

此外,洛基·布蘭德斯(Rocky Brands)至少十年來一直在支付股息,這表明即使以犧牲業務增長爲代價,維持股息支付對管理層來說也更爲重要。

Conclusion

結論

Overall, we have mixed feelings about Rocky Brands. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. Our risks dashboard would have the 3 risks we have identified for Rocky Brands.

總的來說,我們對洛基品牌的看法喜憂參半。儘管鑑於投資回報率低,它似乎保留了大部分利潤,但投資者畢竟可能無法從所有這些再投資中受益。低收入增長表明我們的理論是正確的。總而言之,我們將謹慎對待這家公司,其中一種方法是研究該業務的風險狀況。我們的風險儀表板將包含我們爲洛基品牌確定的三種風險。

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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.

對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。

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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