Should Weakness in First Advantage Corporation's (NASDAQ:FA) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in First Advantage Corporation's (NASDAQ:FA) 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 First Advantage's (NASDAQ:FA) recent performance, when its stock has declined 4.8% 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 First Advantage's ROE today.
First Advantage(NASDAQ:FA)近一個月股價下跌4.8%，難以引起人們的關注。但是，如果你仔細觀察，你會發現其關鍵財務指標相當不錯，這可能意味着，鑑於市場通常會獎勵更具彈性的長期基本面，該股票可能會在長期上升。特別是，我們今天將關注First Advantage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 Is ROE Calculated?
淨資產收益率怎麼計算？
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 First Advantage is:
因此，根據上述公式，First Advantage的roe爲：
3.6% = US$32m ÷ US$908m (Based on the trailing twelve months to March 2024).
3.6% = 3.2億美元/9.08億美元（截至2024年3月的過去12個月）。
The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.04.
“回報”是指公司過去一年的收益。因此，這意味着對於每個股東的投資1美元，公司會產生0.04美元的利潤。
Why Is ROE Important For Earnings Growth?
ROE對於盈利增長的重要性是什麼？
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. 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.
因此，我們已經了解到roe是衡量公司利潤率的有效方法。根據公司重新投資或“保留”這些收益的程度以及其有效程度，我們就能評估公司的盈利增長潛力。假設其他條件相同，權益回報率和利潤保留越高的公司通常比沒有相同特點的公司具有更快的增長率。
First Advantage's Earnings Growth And 3.6% ROE
First Advantage的淨利潤增長和3.6%roe
It is hard to argue that First Advantage's ROE is much good in and of itself. Not just that, even compared to the industry average of 14%, the company's ROE is entirely unremarkable. However, we we're pleasantly surprised to see that First Advantage grew its net income at a significant rate of 33% in the last five years. We believe that there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.
難以否認的是，First Advantage的roe本身並不好。 更重要的是，即使與14%的行業平均水平相比，該公司的roe仍然不值一提。 然而，我們驚喜地發現，過去五年中，First Advantage的淨利潤以33%的速度大幅增長。 我們認爲，可能有其他方面對該公司的盈利增長產生了積極的影響。 例如，該公司的派息比率低或者高效地管理。
As a next step, we compared First Advantage's 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 11%.
接下來，我們將First Advantage的淨利潤增長與行業平均水平進行了比較，令人滿意的是，我們發現，該公司的增長率高於11%的行業平均水平。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. What is FA worth today? The intrinsic value infographic in our free research report helps visualize whether FA is currently mispriced by the market.
評估公司價值的基礎很大程度上取決於其盈利增長。投資者需要判斷的下一步是，預期的盈利增長，或者缺乏盈利增長，是否已經體現在股票價格中。 這樣做將有助於他們確定股票的未來是有前途還是不容樂觀。FA今天的價值是多少？ 我們免費研究報告中的內在價值信息圖表可以幫助您直觀地了解FA當前是否被市場錯誤定價。
Is First Advantage Making Efficient Use Of Its Profits?
First Advantage是否有效利用其利潤？
First Advantage doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.
First Advantage不向股東支付任何定期股息，這意味着該公司一直將其所有利潤再投資到業務中。 這很可能是上述高盈利增長數字的推動力。
Conclusion
結論
In total, it does look like First Advantage has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate. 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，First Advantage的業務有一些積極方面。儘管roe較低，但以高比率再投資，該公司的盈利增長還是大幅增長。我們還研究了最新的分析師預測，並發現該公司的盈利增長預期與其當前增長率相似。要了解有關該公司未來盈利增長預測的更多信息，請查看此公司的分析師預測免費報告。
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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。
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譯文內容由第三人軟體翻譯。