Will Weakness in Paylocity Holding Corporation's (NASDAQ:PCTY) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Paylocity Holding Corporation's (NASDAQ:PCTY) Stock Prove Temporary Given Strong Fundamentals?
With its stock down 16% over the past three months, it is easy to disregard Paylocity Holding (NASDAQ:PCTY). But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Paylocity Holding's ROE today.
Paylocity Holding(纳斯达克股票代码:PCTY)的股价在过去三个月中下跌了16%,很容易被忽视。但是,如果你密切关注,你可能会发现,鉴于市场通常会奖励财务状况良好的公司,其强劲的财务状况可能意味着该股的长期价值可能会增加。特别是,我们今天将关注Paylocity Holding的投资回报率。
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. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE或股本回报率是评估公司如何有效地从股东那里获得的投资回报的有用工具。换句话说,它揭示了该公司成功地将股东投资转化为利润。
View our latest analysis for Paylocity Holding
查看我们对 Paylocity Holding 的最新分析
How To Calculate Return On Equity?
如何计算股本回报率?
The formula for return on equity is:
股本回报率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营)÷ 股东权益
So, based on the above formula, the ROE for Paylocity Holding is:
因此,根据上述公式,Paylocity Holding的投资回报率为:
16% = US$145m ÷ US$893m (Based on the trailing twelve months to September 2023).
16% = 1.45亿美元 ÷ 8.93亿美元(基于截至2023年9月的过去十二个月)。
The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.16.
“回报” 是过去十二个月的利润。因此,这意味着公司每投资1美元,就会产生0.16美元的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要?
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 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.
到目前为止,我们已经了解到,投资回报率是衡量公司盈利能力的指标。我们现在需要评估公司再投资或 “保留” 了多少利润以用于未来的增长,这样我们就可以了解公司的增长潜力。假设其他条件相同,与不具有相同特征的公司相比,既有更高股本回报率又更高利润保留率的公司通常是增长率更高的公司。
Paylocity Holding's Earnings Growth And 16% ROE
Paylocity Holding的收益增长和16%的投资回报率
To begin with, Paylocity Holding seems to have a respectable ROE. On comparing with the average industry ROE of 13% the company's ROE looks pretty remarkable. This certainly adds some context to Paylocity Holding's exceptional 21% net income growth seen over the past five years. However, there could also be other causes behind this growth. For instance, the company has a low payout ratio or is being managed efficiently.
首先,Paylocity Holding的投资回报率似乎不错。与13%的行业平均投资回报率相比,该公司的投资回报率看起来相当可观。这无疑为Paylocity Holding在过去五年中惊人的21%净收入增长增添了一些背景信息。但是,这种增长背后可能还有其他原因。例如,该公司的派息率很低或管理得很高效。
As a next step, we compared Paylocity Holding'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%.
下一步,我们将Paylocity Holding的净收入增长与该行业进行了比较,令人高兴的是,我们发现该公司的增长高于11%的行业平均增长。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240103/0-a0f1cdcd6885228fc28a86d0fe46c6d3-0-83b673ba54b46dc536308f0bca25eae0.png/big)
Earnings growth is a huge factor in stock valuation. 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. Is PCTY fairly valued? This infographic on the company's intrinsic value has everything you need to know.
收益增长是股票估值的重要因素。无论如何,投资者应设法确定预期的收益增长或下降是否已计入其中。这样做将帮助他们确定股票的未来是乐观还是不祥的。PCTY 的价值是否合理?这张关于公司内在价值的信息图包含了你需要知道的一切。
Is Paylocity Holding Efficiently Re-investing Its Profits?
Paylocity Holding是否有效地将其利润再投资?
Given that Paylocity Holding doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鉴于Paylocity Holding不向其股东支付任何股息,我们推断该公司一直在将其所有利润再投资以发展业务。
Conclusion
结论
On the whole, we feel that Paylocity Holding'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. We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to 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.
总的来说,我们认为Paylocity Holding的表现相当不错。具体而言,我们喜欢该公司以高回报率再投资其利润的很大一部分。当然,这导致该公司的收益大幅增长。我们还研究了最新的分析师预测,发现该公司的收益增长预计与其当前的增长率相似。要了解有关公司未来收益增长预测的更多信息,请查看这份关于分析师预测的免费报告,以了解更多信息。
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