Should Weakness in Loews Corporation's (NYSE:L) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Loews Corporation's (NYSE:L) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
With its stock down 2.9% over the past three months, it is easy to disregard Loews (NYSE:L). 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 Loews' ROE in this article.
在過去的三個月中，股票下跌了2.9％，很容易忽略洛斯（紐交所：L）。然而，股票價格通常受公司長期的財務狀況的影響，在這種情況下，看起來相當可觀。具體而言，在本文中，我們決定研究洛斯（Loews）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 Do You Calculate Return On Equity?
怎樣計算ROE?
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算：
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 Loews is:
因此，根據以上公式，洛斯的roe爲：
9.6% = US$1.6b ÷ US$17b (Based on the trailing twelve months to March 2024).
9.6％= 16億美元 ÷ 170億美元（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. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.10 in profit.
“回報”是企業在過去一年中賺取的收入。 一種概念化這一點的方法是，對於每1美元的股東資本，公司賺取了0.10美元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
既然我們已經確定ROE是一種有效的利潤生成標準，用於評估公司未來的盈利能力，我們現在需要評估公司“保留”爲未來增長而重新投資的利潤多少，這使我們對公司的增長潛力有了一個了解。一般而言，在其他條件相等的情況下，ROE和利潤留存高的公司，增長率比沒有這些屬性的公司要高。
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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，我們已經了解了ROE衡量公司產生利潤的效率。現在，我們需要評估公司爲未來增長“留存”的利潤或“保留”多少，這就讓我們對公司的增長潛力有了一個想法。一般來說，其他條件相同的情況下，ROE和利潤保留較高的公司比沒有這些屬性的公司具有更高的增長率。
A Side By Side comparison of Loews' Earnings Growth And 9.6% ROE
洛斯的收益增長和9.6％的roe並列比較
When you first look at it, Loews' ROE doesn't look that attractive. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 13%. In spite of this, Loews was able to grow its net income considerably, at a rate of 28% in the last five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
當您首次查看時，洛斯的roe看起來並不那麼吸引人。然後，我們將公司的roe與更廣泛的行業相比較，很失望地發現roe低於13％的行業平均水平。儘管如此，洛斯的淨利潤在過去五年中以28％的速度增長。我們認爲可能有其他因素在起作用。例如，公司的管理層可能做出了一些不錯的戰略決策，或者公司的支付比率很低。
As a next step, we compared Loews' 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 7.9%.
作爲下一步，我們將洛斯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高於7.9％的行業平均增長率。
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. This then helps them determine if the stock is placed for a bright or bleak future. Is Loews fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增長是股票估值的重要因素。投資者應該嘗試確定預期的收益增長或下降，無論哪種情況，是否已定價。然後，這可以幫助他們確定股票將面臨光明還是黯淡的未來。與其他公司相比，洛斯的估值是否合理？這3個估值措施可能會幫助您做出決定。
Is Loews Efficiently Re-investing Its Profits?
洛斯是否有效地再投資其利潤？
Loews' three-year median payout ratio to shareholders is 4.2%, which is quite low. This implies that the company is retaining 96% of its profits. So it looks like Loews is reinvesting profits heavily to grow its business, which shows in its earnings growth.
洛斯的3年中位數股東派息比率爲4.2％，相當低。這意味着公司保留了96％的利潤。因此，看起來洛斯正在大量重新投資利潤以發展業務，這反映在其收益增長中。
Moreover, Loews is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.
此外，洛斯決心繼續向股東分紅，這可以從其至少十年支付股息的悠久歷史中推斷出。
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。
Overall, we feel that Loews certainly does have some positive factors to consider. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 1 risk we have identified for Loews visit our risks dashboard for free.
總體而言，我們認爲洛斯肯定有一些積極因素需要考慮。儘管roe低，但由於高比例的再投資，公司成功實現了收益的相當大的增長。雖然我們不會完全忽略公司，但我們會嘗試確定業務的風險程度，以做出更明智的決策。了解我們爲洛斯確認的1個風險，可免費訪問我們的風險儀表板。
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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
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譯文內容由第三人軟體翻譯。