Mayville Engineering Company, Inc.'s (NYSE:MEC) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Mayville Engineering Company, Inc.'s (NYSE:MEC) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Mayville Engineering Company (NYSE:MEC) has had a great run on the share market with its stock up by a significant 23% over the last three months. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Mayville Engineering Company's ROE today.
Mayville Engineering Company (紐交所: MEC)在股票市場上運行良好,股價在過去三個月裏顯著上漲了23%。我們想知道公司的財務狀況在股價變化中所起的作用,因爲公司的長期基本面通常決定市場結果。我們今天特別關注Mayville Engineering Company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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
對於股東來說,股東回報率(ROE)是一個重要的考慮因素,因爲它告訴股東他們的資本被有效地再投資了多少。換句話說,它是一個衡量公司股東提供的資本回報率的盈利能力比率。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
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 Mayville Engineering Company is:
因此,根據以上公式,Mayville Engineering Company的roe爲:
3.6% = US$8.5m ÷ US$234m (Based on the trailing twelve months to March 2024).
3.6% = 850萬美元 ÷ 2.34億美元(截至2024年3月的最近12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 $0.04.
“回報”是企業在過去一年中所賺取的收入。因此,這意味着對於股東的每1美元投資,該公司就會創造0.04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?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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衡量公司生成利潤的效率。根據公司再投資或“保留”的利潤比例及其有效性,我們能夠評估公司的收益增長潛力。在其他一切保持不變的情況下,roe和利潤保留率越高,公司的增長率就越高,相比於那些不一定擁有這些特性的公司。
Mayville Engineering Company's Earnings Growth And 3.6% ROE
Mayville Engineering Company的盈利增長與3.6%的roe
It is hard to argue that Mayville Engineering Company's ROE is much good in and of itself. Even compared to the average industry ROE of 14%, the company's ROE is quite dismal. Despite this, surprisingly, Mayville Engineering Company saw an exceptional 35% net income growth over the past five years. Therefore, there could be other reasons behind this growth. Such as - high earnings retention or an efficient management in place.
很難說Mayville Engineering Company的roe本身很好。即使與行業平均roe相比14%,公司的roe也相當低迷。儘管如此,令人驚訝的是,Mayville Engineering Company在過去五年中看到了異常的35%的淨利潤增長。因此,這種增長背後可能有其他原因。例如-高保留收益或高效的管理。
As a next step, we compared Mayville Engineering Company's 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 11%.
作爲下一步,我們將Mayville Engineering Company的淨利潤增長與整個行業進行比較,令人高興的是,我們發現公司的增長高於11%的行業平均增長。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. 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 Mayville Engineering Company is trading on a high P/E or a low P/E, relative to its industry.
給公司附加價值的基礎,在很大程度上與其盈利增長有關。投資者應該試圖確定預期的盈利增長或下降,無論哪種情況,是否得到了定價。通過這樣做,他們將了解股票是進入明朗的藍色水域還是等待泥濘的水域。預期盈利增長的一個很好的指標是市盈率,它根據股票的盈利前景確定市場願意支付的價格。因此,您可能需要檢查Mayville Engineering Company的市盈率高還是低,相對於其行業而言。
Is Mayville Engineering Company Using Its Retained Earnings Effectively?
Mayville Engineering Company是否有效利用保留收益?
Mayville Engineering Company doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.
Mayville Engineering Company不向股東支付任何定期股息,這意味着公司一直將其所有利潤投資於業務中。這很可能是上述高盈利增長數字的推動因素。
Conclusion
結論
In total, it does look like Mayville Engineering Company has some positive aspects to its business. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總之,Mayville Engineering Company在業務上有一些積極因素。即使回報率很低,但公司通過大量投資業務實現了令人印象深刻的盈利增長。既然如此,最新分析師預測的研究顯示,預計該公司未來的盈利增長將放緩。要了解有關公司最新分析師預測的更多信息,請查看此分析師預測的可視化。
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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。