Are Strong Financial Prospects The Force That Is Driving The Momentum In RLI Corp.'s NYSE:RLI) Stock?
Are Strong Financial Prospects The Force That Is Driving The Momentum In RLI Corp.'s NYSE:RLI) Stock?
RLI's (NYSE:RLI) stock is up by a considerable 5.4% over the past week. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to RLI's ROE today.
過去一週,RLI (紐交所: RLI)的股價上漲了相當可觀的5.4%。由於市場通常會爲一個公司的長期基本面買單,我們決定研究該公司的關鍵業績指標,以查看它們是否可能影響市場。特別是,我們今天將關注RLI的roe。
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. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即淨資產收益率,是一種評估公司如何有效地從股東手中獲取投資回報的有用工具。換句話說,它是一種盈利能力比率,衡量公司股東提供的資本的回報率。
How Is ROE Calculated?
淨資產收益率怎麼計算?
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 RLI is:
所以,基於上述公式,RLI的ROE是:
21% = US$338m ÷ US$1.6b (Based on the trailing twelve months to June 2024).
21% = US$3.38億 ÷ US$16億 (截至2024年6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 $0.21 in profit.
“回報”是過去12個月的利潤,這意味着對於每1美元的股東權益,公司產生了0.21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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
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。
A Side By Side comparison of RLI's Earnings Growth And 21% ROE
RLI的收益增長與21%的ROE並列比較
To begin with, RLI seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 13%. Probably as a result of this, RLI was able to see an impressive net income growth of 26% over the last five years. We believe that there might also 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.
首先,RLI的roe似乎相當可觀。此外,該公司的roe相對於行業平均水平的13%可以說表現相當好。可能正是由於這個原因,RLI最近五年的淨利潤增長達到了驚人的26%。我們認爲可能還有其他方面對公司的收益增長產生積極影響。例如,該公司的股息支付比率很低或管理得非常高效。
Next, on comparing with the industry net income growth, we found that RLI's growth is quite high when compared to the industry average growth of 8.9% in the same period, which is great to see.
接下來,通過與行業淨利潤增長作比較,我們發現RLI的增長率相當高,比同期行業平均增長率的8.9%高,這是非常好的。
![big](https://newsfile.futunn.com/public/NN-PersistNewsContentImage/7781/20240728/0-7f42f7a08f016ddf0b28b22aff30600b-0-4d3c0cdefec7bb6dfede18fed6cb722b.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is RLI fairly valued? This infographic on the company's intrinsic value has everything you need to know.
評估一個公司的價值基礎,很大程度上取決於其收益增長。對於投資者來說,了解市場是否已經反映了公司預期的收益增長(或下降)非常重要。這將幫助他們確定股票的未來前景是有希望的還是有風險的。RLI是否定價合理?這份關於公司內在價值的信息圖中有您想了解的一切。
Is RLI Efficiently Re-investing Its Profits?
RLI有效地再投資其利潤嗎?
RLI's three-year median payout ratio to shareholders is 16%, which is quite low. This implies that the company is retaining 84% of its profits. So it looks like RLI is reinvesting profits heavily to grow its business, which shows in its earnings growth.
RLI向股東的三年中位數股息支付比率爲16%,相當低。這表明該公司將84%的利潤留作再投資。因此,RLI在再投資其利潤以促進業務增長方面表現出色,在其盈利增長中展現出來。
Moreover, RLI 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 is expected to rise to 52% over the next three years. Despite the higher expected payout ratio, the company's ROE is not expected to change by much.
此外,RLI決心繼續與股東分享利潤,我們從其至少十年發放股息的歷史中推斷出這一點。我們最新的分析師數據顯示,公司未來三年的股息支付比率有望上升至52%。儘管預計股息支付比率會提高,但公司的ROE預計不會有太大變化。
Conclusion
結論
On the whole, we feel that RLI'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. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總的來說,我們認爲RLI的表現相當不錯。特別是,我們很喜歡公司以高的回報率再投資了大量利潤來促進其業務增長。當然,這導致了公司盈利的顯着增長。不過,通過研究最新的分析師預測,我們發現雖然公司過去的收益增長表現不錯,但分析師們預計其未來的收益會下降。想了解更多有關該公司最新分析師預測的信息,請查看這份分析師預測的可視化報告。
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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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。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。