Has Encompass Health Corporation (NYSE:EHC) Stock's Recent Performance Got Anything to Do With Its Financial Health?
Has Encompass Health Corporation (NYSE:EHC) Stock's Recent Performance Got Anything to Do With Its Financial Health?
Encompass Health's (NYSE:EHC) stock is up by 9.7% over the past three months. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to investigate if the company's decent financials had a hand to play in the recent price move. In this article, we decided to focus on Encompass Health's ROE.
過去三個月,Encompass Health(紐交所:EHC)的股價上漲了9.7%。鑑於股價通常與公司的長期財務表現相一致,我們決定調查這家公司的良好財務是否對最近的股價上漲起了作用。在本文中,我們決定關注Encompass Health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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東要考慮的關鍵因素之一是淨資產收益率或roe,因爲它告訴他們公司如何有效地重新投資他們的資本。簡單點說,它衡量了公司與股東權益相關的盈利能力。
How Do You Calculate Return On Equity?
怎樣計算ROE?
The formula for ROE is:
roe的公式是:
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 Encompass Health is:
所以,根據上述公式,Encompass Health的ROE爲:
21% = US$501m ÷ US$2.4b (Based on the trailing twelve months to March 2024).
21%=US $ 5,0100萬÷US $ 24億(根據截至2024年3月的過去十二個月)。
The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.21.
'回報'是企業在過去一年內獲得的收益。這意味着對於每筆股東投資的1美元,公司將賺取0.21美元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
ROE與盈利增長之間的關係是什麼?
So far, we've learned that ROE is a measure of a company's profitability. 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. 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是衡量公司盈利能力的一個指標。我們現在需要評估公司再投資或“保留”未來增長的利潤量,以此給我們提供公司增長潛力的想法。假設其他所有因素保持不變,ROE和利潤保留率越高,相比不具備這些特徵的公司,這些公司的增長率就越高。
Encompass Health's Earnings Growth And 21% ROE
Encompass Health的盈利增長和21%的ROE
To begin with, Encompass Health seems to have a respectable ROE. On comparing with the average industry ROE of 11% the company's ROE looks pretty remarkable. However, we are curious as to how the high returns still resulted in flat growth for Encompass Health in the past five years. We reckon that there could be some other factors at play here that's limiting the company's growth. Such as, the company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures.
首先,Encompass Health似乎具有可敬的ROE。與平均行業ROE 11%相比,該公司的ROE看起來非常出色。然而,我們很好奇高收益爲什麼在過去五年裏仍然導致了Encompass Health的盈利增長停滯不前。我們認爲這裏可能會有其他因素在起作用,這些因素限制了公司的增長。例如,公司支付巨額股息,或面臨競爭壓力。
We then compared Encompass Health's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 5.0% in the same 5-year period, which is a bit concerning.
然後,我們將Encompass Health的淨利潤增長與行業進行比較,發現公司的增長率低於同一5年期的行業平均增長率5.0%,這有點令人擔憂。
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Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Encompass Health's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是考慮股票估值時需要考慮的重要指標。投資者需要確定的下一步是預期的盈利增長,或者缺乏盈利增長是否已經建立在股票價格中。通過這樣做,他們將了解股票是朝着明朗的藍色水域還是沼澤水域前進。如果您想了解Encompass Health的估值,請查看其市盈率與行業相比的評估。
Is Encompass Health Making Efficient Use Of Its Profits?
Encompass Health是否有效利用其利潤?
Despite having a normal three-year median payout ratio of 35% (implying that the company keeps 65% of its income) over the last three years, Encompass Health has seen a negligible amount of growth in earnings as we saw above. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
儘管在過去三年中,Encompass Health的常態化三年中位數股息支付比率爲35%(暗示公司將其收入的65%保留下來),但在過去的幾年中,其盈利增長几乎沒有增長。所以這裏可能會有其他因素在發揮作用,這些因素可能會影響增長。例如,該業務遇到了一些困難。
Additionally, Encompass Health has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 12% over the next three years. However, the company's ROE is not expected to change by much despite the lower expected payout ratio.
此外,Encompass Health已經連續至少十年支付股息,這意味着即使沒有盈利增長,該公司的管理層也決心支付股息。現有的分析師估計表明,未來三年該公司的股息支付比率預計將下降至12%。但是,儘管預期的股息支付比率較低,該公司的ROE預計不會有太大變化。
Conclusion
結論
Overall, we feel that Encompass Health certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing 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.
總體而言,我們認爲Encompass Health確實有一些要考慮的積極因素。然而,收益增長較低有點令人擔憂,尤其是考慮到公司的高回報率並正在重新投資其利潤。看起來,可能有其他因素,不一定是業務的控制之下,正在阻止增長。儘管如此,最新的分析師預測顯示,該公司的收益將繼續擴張。這些分析師的預期是基於整個行業的預期,還是基於公司的基本面?請點擊此處訪問我們的分析師預測頁面。
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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。