Could The Market Be Wrong About RPM International Inc. (NYSE:RPM) Given Its Attractive Financial Prospects?
Could The Market Be Wrong About RPM International Inc. (NYSE:RPM) Given Its Attractive Financial Prospects?
It is hard to get excited after looking at RPM International's (NYSE:RPM) recent performance, when its stock has declined 6.4% over the past three months. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on RPM International's ROE.
看了RPM International(紐約證券交易所代碼:RPM)最近的表現,很難感到興奮,當時其股票在過去三個月中下跌了6.4%。但是,仔細觀察其良好的財務狀況可能會讓你重新考慮。鑑於基本面通常會推動長期市場業績,因此該公司值得關注。在本文中,我們決定重點介紹RPM國際的投資回報率。
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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
ROE或股本回報率是評估公司如何有效地從股東那裏獲得的投資中獲得回報的有用工具。簡而言之,它用於評估公司相對於其股權資本的盈利能力。
How To Calculate Return On Equity?
如何計算股本回報率?
The formula for return on equity is:
股本回報率的公式是:
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 RPM International is:
因此,根據上述公式,RPM International的投資回報率爲:
24% = US$560m ÷ US$2.3b (Based on the trailing twelve months to February 2024).
24% = 5.6億美元 ÷ 23億美元(基於截至2024年2月的過去十二個月)。
The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.24 in profit.
“回報” 是過去十二個月的利潤。這意味着,每獲得價值1美元的股東權益,該公司就會產生0.24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. 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 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.
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。根據公司選擇將多少利潤進行再投資或 “保留”,我們便能夠評估公司未來創造利潤的能力。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。
RPM International's Earnings Growth And 24% ROE
RPM International的收益增長和24%的投資回報率
To begin with, RPM International has a pretty high ROE which is interesting. Additionally, the company's ROE is higher compared to the industry average of 10% which is quite remarkable. This probably laid the groundwork for RPM International's moderate 14% net income growth seen over the past five years.
首先,RPM International的投資回報率相當高,這很有趣。此外,該公司的投資回報率高於行業平均水平的10%,這非常引人注目。這可能爲RPM International在過去五年中實現14%的溫和淨收入增長奠定了基礎。
Next, on comparing RPM International's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 14% over the last few years.
接下來,在將RPM International的淨收入增長與該行業進行比較時,我們發現該公司報告的增長與過去幾年14%的行業平均增長率相似。
![past-earnings-growth](https://newsfile.futunn.com/public/NN-PersistNewsContentImage/7781/20240707/0-9b869c0ef36f989ad29631b853707fac-0-dab9262c2bfcc800665a5dcbc6fb7cb0.png/big)
Earnings growth is an important metric to consider when valuing a stock. 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 RPM International is trading on a high P/E or a low P/E, relative to its industry.
收益增長是對股票進行估值時要考慮的重要指標。無論如何,投資者應設法確定預期的收益增長或下降是否已計入其中。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。衡量預期收益增長的一個很好的指標是市盈率,它根據收益前景決定了市場願意爲股票支付的價格。因此,你可能需要檢查一下RPM International相對於其行業的市盈率是高還是低市盈率。
Is RPM International Making Efficient Use Of Its Profits?
RPM International 是否在有效利用其利潤?
With a three-year median payout ratio of 42% (implying that the company retains 58% of its profits), it seems that RPM International is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
RPM International的三年派息率中位數爲42%(這意味着該公司保留了58%的利潤),看來RPM International正在進行有效的再投資,其收益將實現可觀的增長,並支付可觀的股息。
Moreover, RPM International 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. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 34%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 27%.
此外,RPM International決心繼續與股東分享利潤,這是我們從其支付股息至少十年的悠久歷史中推斷出來的。我們最新的分析師數據顯示,公司未來三年的派息率預計約爲34%。因此,預計該公司未來的投資回報率也不會有太大變化,分析師預計投資回報率爲27%。
Summary
摘要
On the whole, we feel that RPM International's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. The latest industry analyst forecasts show that the company is expected to maintain 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.
總的來說,我們認爲RPM International的表現相當不錯。具體而言,我們喜歡該公司以高回報率再投資其利潤的很大一部分。當然,這導致該公司的收益大幅增長。最新的行業分析師預測顯示,預計該公司將保持目前的增長率。要了解有關公司未來收益增長預測的更多信息,請查看這份關於分析師預測的免費報告,以了解更多信息。
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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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 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。