Is Prudential Financial, Inc.'s (NYSE:PRU) 8.4% ROE Worse Than Average?
Is Prudential Financial, Inc.'s (NYSE:PRU) 8.4% ROE Worse Than Average?
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 Prudential Financial, Inc. (NYSE:PRU), by way of a worked example.
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。举一个有效的例子,我们将使用投资回报率来研究保诚金融公司(纽约证券交易所代码:PRU)。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。简而言之,它衡量公司相对于股东权益的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
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 Prudential Financial is:
因此,根据上述公式,保诚金融的投资回报率为:
8.4% = US$2.5b ÷ US$30b (Based on the trailing twelve months to December 2023).
8.4% = 25亿美元 ÷ 300亿美元(基于截至2023年12月的过去十二个月)。
The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.08 in profit.
“回报” 是指公司去年的收益。概念化这一点的一种方法是,公司每拥有1美元的股东资本,就会获得0.08美元的利润。
Does Prudential Financial Have A Good ROE?
保诚金融的投资回报率是否良好?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As shown in the graphic below, Prudential Financial has a lower ROE than the average (13%) in the Insurance industry classification.
确定公司股本回报率是否不错的一种简单方法是将其与该行业的平均水平进行比较。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。如下图所示,保诚金融的投资回报率低于保险行业分类中的平均水平(13%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240227/0-593890c87e60d32030c81e7137d56250-0-fe7c878bf85d96166489cce7c7ad9ffe.png/big)
That's not what we like to see. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved.
这不是我们喜欢看到的。但是,我们认为,只要现有债务水平较低,较低的投资回报率仍可能意味着公司有机会通过使用杠杆提高回报。鉴于所涉及的风险,高债务水平和低投资回报率的公司是我们希望避免的组合。
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
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
公司通常需要投资资金来增加利润。这些现金可以来自留存收益、发行新股(股权)或债务。在第一和第二种情况下,投资回报率将反映出现金投资业务的使用情况。在后一种情况下,用于增长的债务将提高回报,但不会影响总权益。因此,债务的使用可以提高投资回报率,尽管比喻地说,在暴风雨天气中还会带来额外的风险。
Prudential Financial's Debt And Its 8.4% ROE
保诚金融的债务及其8.4%的投资回报率
Prudential Financial clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.12. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
保诚金融显然使用大量债务来提高回报,因为其负债权益比率为1.12。即使使用了巨额债务,其投资回报率也相当低;在我们看来,这不是一个好结果。债务确实会带来额外的风险,因此只有当公司从中获得可观的回报时,债务才是真正值得的。
Summary
摘要
Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
股本回报率对于比较不同业务的质量很有用。能够在不负债过多的情况下获得高股本回报的公司通常质量很好。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. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at this data-rich interactive graph of 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。与股票价格所反映的预期相比,利润增长率尤其值得考虑。因此,你可能想看看这张数据丰富的公司预测交互式图表。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
当然,通过寻找其他地方,你可能会找到一笔不错的投资。因此,来看看这份有趣的公司的免费清单吧。
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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。