Declining Stock and Solid Fundamentals: Is The Market Wrong About Vulcan Materials Company (NYSE:VMC)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Vulcan Materials Company (NYSE:VMC)?
Vulcan Materials (NYSE:VMC) has had a rough three months with its share price down 8.8%. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Vulcan Materials' ROE in this article.
Vulcan Materials (紐交所: VMC) 的股價在過去的三個月中下跌了8.8%。然而，股票價格通常受公司的長期財務表現的影響，在這種情況下顯示出相當有前途。具體而言，我們決定在本文中研究Vulcan Materials的ROE。
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.
股東權益回報率ROE是測試公司增值能力和管理股東投資的有效性的指標。更簡單地說，它衡量公司在股東權益中的盈利能力。
How Is ROE Calculated?
淨資產收益率怎麼計算？
The formula for return on equity is:
權益回報率的計算公式是：
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 Vulcan Materials is:
因此，基於上述公式，Vulcan Materials的ROE爲：
12% = US$927m ÷ US$7.5b (Based on the trailing twelve months to March 2024).
12% = 9.27億美元 ÷ 75億美元（截至2024年3月的最近十二個月）。
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.12 in profit.
“回報”是過去十二個月的利潤。將其概念化的一種方式是，如果公司有1美元的股東資本，它在利潤方面賺了0.12美元。
What Has ROE Got To Do With Earnings Growth?
ROE與盈利增長有什麼關係？
So far, we've learned that ROE is a measure of a company's profitability. 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ROE是一家公司盈利能力的衡量標準。基於公司選擇重新投資或“保留”的利潤的數量，我們隨後能夠評估公司未來產生利潤的能力。假設其他所有條件不變，ROE和利潤保留越高，增長率就相對較高，與那些可能不具備這些特徵的公司相比，增長更快。
Vulcan Materials' Earnings Growth And 12% ROE
Vulcan Materials的收益增長和12%的ROE
To begin with, Vulcan Materials seems to have a respectable ROE. Further, the company's ROE is similar to the industry average of 15%. Consequently, this likely laid the ground for the decent growth of 7.6% seen over the past five years by Vulcan Materials.
首先，Vulcan Materials似乎擁有一個可觀的ROE。此外，該公司的ROE與行業平均水平相當，爲15%。因此，這可能爲Vulcan Materials過去五年所看到的7.6%的可觀增長奠定了基礎。
We then compared Vulcan Materials' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 21% in the same 5-year period, which is a bit concerning.
然後，我們將Vulcan Materials的淨收入增長與行業進行了比較，並發現該公司的增長數字低於同一期間21%的平均行業增長率，這有點令人擔憂。
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. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Vulcan Materials is trading on a high P/E or a low P/E, relative to its industry.
盈利增長是股票估值的一個重要因素。投資者應嘗試確定預期的收益增長或下降（如果有的話）是否已經定價。這樣做可以幫助他們確定股票的未來前途是看漲還是看跌。一個衡量預計收益增長的好指標是市盈率，它基於公司的盈利前景確定市場願意爲股票支付的價格。因此，您可能想檢查Vulcan Materials的市盈率是高還是低，相對於其行業而言。
Is Vulcan Materials Using Its Retained Earnings Effectively?
Vulcan Materials是否有效地使用了其保留的收益？
Vulcan Materials has a three-year median payout ratio of 30%, which implies that it retains the remaining 70% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
Vulcan Materials的三年中位數派息比率爲30%，這意味着它保留了其利潤的其餘70%。這表明其股息得到了良好的覆蓋，並且考慮到公司所看到的不錯的增長，管理層似乎是在有效地再投資其收入。
Additionally, Vulcan Materials 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. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 19% over the next three years. Regardless, the ROE is not expected to change much for the company despite the lower expected payout ratio.
此外，Vulcan Materials已經連續十年支付股息，這意味着該公司非常注重與股東分享其利潤。在研究最新的分析師共識數據時，我們發現該公司未來的派息比率預計將在未來三年內下降至19%。儘管如此，該公司的ROE預計不會有太大變化，儘管派息比率有所降低。
Conclusion
結論
On the whole, we feel that Vulcan Materials' performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. As a result, the decent growth in its earnings is not surprising. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. 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.
總體而言，我們認爲Vulcan Materials的表現相當不錯。特別地，我們喜歡該公司大量投資業務，並以很高的回報率進行，因此可以理解其收益的不錯增長。與此同時，最新的行業分析師預測顯示該公司的收益預計將加速增長。這些分析師的預期是基於廣泛行業的預期，還是基於該公司的基本面？請單擊此處可查看有關該公司的分析師預測頁面。
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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
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@simplywallst.com。
譯文內容由第三人軟體翻譯。