How Did SJW Group's (NYSE:SJW) 6.9% ROE Fare Against The Industry?
How Did SJW Group's (NYSE:SJW) 6.9% ROE Fare Against The Industry?
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). By way of learning-by-doing, we'll look at ROE to gain a better understanding of SJW Group (NYSE:SJW).
许多投资者仍在学习分析股票时可能有用的各种指标。本文适用于那些想了解股本回报率(ROE)的人。通过边干边学的方式,我们将研究投资回报率,以更好地了解SJW集团(纽约证券交易所代码:SJW)。
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.
股本回报率或投资回报率是股东需要考虑的重要因素,因为它可以告诉他们资本再投资的有效性。换句话说,它是衡量公司股东提供的资本回报率的盈利比率。
How Is ROE Calculated?
ROE 是如何计算的?
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for SJW Group is:
因此,根据上述公式,SJW 集团的投资回报率为:
6.9% = US$85m ÷ US$1.2b (Based on the trailing twelve months to December 2023).
6.9% = 8,500万美元 ÷ 12亿美元(基于截至2023年12月的过去十二个月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.07 in profit.
“回报” 是企业去年获得的收入。将其概念化的一种方法是,每持有1美元的股东资本,公司就会获得0.07美元的利润。
Does SJW Group Have A Good Return On Equity?
SJW 集团有良好的股本回报率吗?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. You can see in the graphic below that SJW Group has an ROE that is fairly close to the average for the Water Utilities industry (8.1%).
通过将公司的投资回报率与其行业平均水平进行比较,我们可以快速衡量其表现如何。但是,这种方法仅在粗略检查时有用,因为各公司在相同的行业分类中确实存在很大差异。您可以在下图中看到,SJW集团的投资回报率与水务行业的平均水平(8.1%)相当接近。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240223/0-3dad503193122bcc715e8e51db3cca02-0-035af4bd079d266e097e314ef81ede85.png/big)
That's neither particularly good, nor bad. Even if the ROE is respectable when compared to the industry, its worth checking if the firm's ROE is being aided by high debt levels. If true, then it is more an indication of risk than the potential. You can see the 3 risks we have identified for SJW Group by visiting our risks dashboard for free on our platform here.
这既不是特别好,也不是特别糟糕。即使与行业相比,投资回报率可观,也值得检查一下公司的投资回报率是否受到高额债务水平的支撑。如果属实,则与其说是潜在风险,不如说是风险。您可以访问我们的 SJW 集团确定的三种风险 风险仪表板 在我们的平台上免费使用。
Why You Should Consider Debt When Looking At ROE
为什么在考虑投资回报率时应该考虑债务
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
大多数公司需要来自某个地方的资金来增加利润。这些现金可以来自留存收益、发行新股(股权)或债务。对于第一和第二种选择,投资回报率将反映现金用于增长的这种用途。在后一种情况下,增长所需的债务将提高回报,但不会影响股东权益。这将使投资回报率看起来比不使用债务时更好。
SJW Group's Debt And Its 6.9% ROE
SJW 集团的债务及其 6.9% 的投资回报率
It's worth noting the high use of debt by SJW Group, leading to its debt to equity ratio of 1.42. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
值得注意的是,SJW集团大量使用债务,导致其债务权益比率为1.42。相当低的投资回报率和大量使用债务相结合并不是特别有吸引力。投资者应该仔细考虑如果一家公司无法如此轻易地借款,其表现会如何,因为信贷市场确实会随着时间的推移而发生变化。
Summary
摘要
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
股本回报率是衡量企业创造利润并将其返还给股东的能力的有用指标。在我们的账簿中,尽管债务很低,但质量最高的公司的股本回报率却很高。在其他条件相同的情况下,更高的投资回报率更好。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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 you might want to check this FREE visualization of analyst forecasts for the company.
但是投资回报率只是更大难题中的一部分,因为高质量的企业通常以高倍的收益进行交易。还必须考虑利润可能增长的速度,相对于当前价格所反映的利润增长预期。因此,您可能需要查看该公司的分析师预测的免费可视化效果。
Of course SJW Group may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
当然,SJW集团可能不是最值得购买的股票。因此,您不妨免费查看其他投资回报率高、负债率低的公司的名单。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。