Should Weakness in Endava Plc's (NYSE:DAVA) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Endava Plc's (NYSE:DAVA) 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 Endava's (NYSE:DAVA) recent performance, when its stock has declined 21% over the past three months. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Endava's ROE in this article.
看了Endava(NYSE:DAVA)最近的表現後，很難感到興奮，因爲其股價在過去三個月裏已經下跌了21%。但是，股價通常是由公司的財務狀況長期推動的，在此情況下，公司的財務狀況相當可觀。具體而言，在本文中我們決定研究Endava的ROE。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
對於股東來說，股東回報率（ROE）是一個重要的考慮因素，因爲它告訴股東他們的資本被有效地再投資了多少。換句話說，它是一個衡量公司股東提供的資本回報率的盈利能力比率。
How To Calculate Return On Equity?
如何計算股東權益報酬率？
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算：
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 Endava is:
因此，根據上述公式，Endava的ROE是：
6.7% = UK£42m ÷ UK£625m (Based on the trailing twelve months to March 2024).
6.7% = 英鎊42m ÷ 英鎊625m（基於2024年3月止最近12個月數據）。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.07 in profit.
“回報”是納稅後在過去12個月內賺取的金額。另一種思考方式是，對於每1美元的股本，公司能夠賺取0.07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？
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. 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，我們已經了解了roe是公司盈利能力的一種衡量標準。根據公司重新投資或“保留”的利潤數量和效率，我們可以評估公司的盈利增長潛力。假設其他所有因素保持不變，roe和保留的利潤越高，相對於不一定具有這些特徵的公司，公司的增長率就越高。
Endava's Earnings Growth And 6.7% ROE
Endava的盈利增長和6.7%的ROE
At first glance, Endava's ROE doesn't look very promising. Next, when compared to the average industry ROE of 12%, the company's ROE leaves us feeling even less enthusiastic. Despite this, surprisingly, Endava saw an exceptional 28% net income growth over the past five years. So, there might be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
乍一看，Endava的ROE看起來並不是很有希望。接着，將其與平均行業ROE的12%進行比較後，公司的ROE的表現讓我們感到更加不熱情。儘管如此，令人驚訝的是，Endava在過去五年中實現了出色的28%的淨利潤增長。因此，可能還有其他積極影響公司盈利增長的因素，如高盈利保留或有效的管理。
As a next step, we compared Endava'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 8.8%.
作爲下一步，我們將Endava的淨利潤增長與行業進行了比較，令人高興的是，我們發現公司的增長率高於平均行業增長率8.8%。
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. 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 DAVA? You can find out in our latest intrinsic value infographic research report.
盈利增長是股票估值的重要因素。投資者需要判斷的是，預期的盈利增長或缺乏盈利增長是否已經融入股價，從而幫助他們判斷股票是否處於光明或黯淡的未來。市場是否已經爲DAVA的未來前景定價？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 Endava Efficiently Re-investing Its Profits?
Endava是否有效地重新投資了其利潤？
Endava 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.
Endava不向股東支付任何定期股息，這意味着公司一直在將其所有利潤重新投資到業務中。這很可能就是上面討論的高盈利增長數字的推動因素。
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 do feel that Endava has some positive attributes. 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. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總的來說，我們確實認爲Endava有一些積極因素。儘管其回報率較低，但公司將其利潤的很高一部分重新投資到業務中，這無疑促進了其高盈利增長。雖然如此，最新的分析師預測顯示，公司的盈利將繼續擴張。這些分析師的預測是基於行業的廣泛預期還是基於公司的基本面？單擊此處進入公司分析師預測頁面，了解更多信息。
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對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者，發送電子郵件至editorial-team (at) 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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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譯文內容由第三人軟體翻譯。