Based On Its ROE, Is Concrete Pumping Holdings, Inc. (NASDAQ:BBCP) A High Quality Stock?
Based On Its ROE, Is Concrete Pumping Holdings, Inc. (NASDAQ:BBCP) A High Quality Stock?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Concrete Pumping Holdings, Inc. (NASDAQ:BBCP), by way of a worked example.
許多投資者仍在課堂上學習分析股票時可以用到的各種指標。本文是爲那些希望了解股本回報率(roe)的人準備的。我們將通過一個工作示例來使用roe來檢查concrete pumping holdings, inc.(納斯達克:BBCP)。
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股東必須考慮股本回報率或ROE,因爲它告訴他們公司如何有效地重新投資他們的資本。 簡而言之,ROE顯示每美元股東投資所產生的利潤。
How Do You Calculate Return On Equity?
如何計算淨資產收益率?
ROE can be calculated by using the formula:
roe可以通過以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤(來自持續經營) ÷ 股東權益
So, based on the above formula, the ROE for Concrete Pumping Holdings is:
因此,根據上述公式,concrete pumping holdings的roe爲:
4.8% = US$16m ÷ US$340m (Based on the trailing twelve months to July 2024).
4.8% = US$1600萬 ÷ US$34000萬(基於截至2024年7月的過去十二個月)。
The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.05 in profit.
「回報」是企業過去一年賺取的收入。另一種理解方式是,對於每1美元的淨資產,公司能夠賺取0.05美元的利潤。
Does Concrete Pumping Holdings Have A Good ROE?
concrete pumping holdings的roe好嗎?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Concrete Pumping Holdings has a lower ROE than the average (14%) in the Construction industry.
評估公司roe最簡單的方法是將其與行業的平均水平進行比較。重要的是,這遠非一個完美的衡量標準,因爲公司在同一行業分類中的差異顯著。從下面的圖像可以看出,concrete pumping holdings的roe低於施工行業的平均水平(14%)。
That's not what we like to see. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. Our risks dashboard should have the 2 risks we have identified for Concrete Pumping Holdings.
這不是我們想看到的。不過,低roe並不總是壞事。如果公司的債務水平適中或低,那麼仍然有機會通過財務槓桿來改善回報。我們喜歡避免高債務水平和低roe的公司,因爲這涉及風險。我們的風險儀表盤應該列出了我們爲concrete pumping holdings識別的2個風險。
Why You Should Consider Debt When Looking At ROE
爲什麼在觀察ROE時你應該考慮債務問題?
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
幾乎所有公司都需要資金來投資業務以增加利潤。 投資資金可以來自前年的利潤(留存收益),發行新股或借貸。 在前兩種情況下,ROE將反映出這種用於投資業務的現金使用情況。 在後一種情況下,使用債務將提高回報,但不會改變股權。 因此,使用債務可以改善ROE,儘管在像暴風雨一樣的情況下會伴隨着額外的風險。
Concrete Pumping Holdings' Debt And Its 4.8% ROE
concrete pumping holdings的債務及其4.8%的roe
Concrete Pumping Holdings does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.10. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
concrete pumping holdings確實使用了大量債務來增加回報。它的債務與股本比率爲1.10。由於roe相對較低且債務使用顯著,目前很難對這個業務感到興奮。債務增加了風險,減少了公司未來的選擇,因此通常你希望看到一些良好的回報。
Summary
總結
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
淨資產收益率是衡量企業創造利潤並將其返還給股東的能力的有用指標。如果一家公司能夠在沒有債務的情況下實現高回報股東的回報,那麼可以認爲這是一家高質量的公司。如果兩家公司的股權和債務水平大致相同,並且一家公司的ROE較高,那麼我通常會選擇那個ROE較高的公司。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking this free report on analyst forecasts for the company.
儘管ROE是業務質量的一個有用指標,但您需要考慮一系列因素,以確定購買股票的正確價格。預計利潤增長的速度與當前價格所反映的利潤增長預期相對比也必須考慮在內。因此,我認爲檢查該公司分析師預測的免費報告可能值得一試。
But note: Concrete Pumping Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但請注意:concrete pumping holdings可能不是最值得買入的股票。因此,請查看這份免費的有高roe和低債務的有趣公司清單。
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