Universal Display Corporation's (NASDAQ:OLED) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
Universal Display Corporation's (NASDAQ:OLED) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
It is hard to get excited after looking at Universal Display's (NASDAQ:OLED) recent performance, when its stock has declined 14% over the past three months. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. In this article, we decided to focus on Universal Display's ROE.
看了环球显示器(纳斯达克股票代码:OLED)的近期表现,很难感到兴奋,当时其股票在过去三个月中下跌了14%。但是,股票价格通常由公司的长期财务业绩驱动,在这种情况下,这看起来很有希望。在本文中,我们决定重点关注环球显示器的投资回报率。
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 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 Universal Display is:
因此,根据上述公式,环球显示器的投资回报率为:
14% = US$203m ÷ US$1.4b (Based on the trailing twelve months to December 2023).
14% = 2.03亿美元 ÷ 14亿美元(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. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.14 in profit.
“回报” 是企业在过去一年中获得的收入。另一种思考方式是,每持有价值1美元的股权,该公司就能获得0.14美元的利润。
What Has ROE Got To Do With Earnings Growth?
投资回报率与收益增长有什么关系?
So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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。根据公司选择将多少利润进行再投资或 “保留”,我们便能够评估公司未来创造利润的能力。假设其他一切保持不变,那么与不一定具有这些特征的公司相比,投资回报率和利润保留率越高,公司的增长率就越高。
Universal Display's Earnings Growth And 14% ROE
环球显示器的收益增长和14%的投资回报率
To begin with, Universal Display seems to have a respectable ROE. Even when compared to the industry average of 14% the company's ROE looks quite decent. This certainly adds some context to Universal Display's moderate 17% net income growth seen over the past five years.
首先,环球显示器似乎具有可观的投资回报率。即使与行业平均水平的14%相比,该公司的投资回报率也相当不错。这无疑为环球显示在过去五年中实现的17%的温和净收入增长增添了一些背景信息。
We then compared Universal Display's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 29% in the same 5-year period, which is a bit concerning.
然后,我们将环球显示器的净收入增长与该行业进行了比较,发现该公司的增长数字低于同期29%的行业平均增长率,这有点令人担忧。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240328/0-e7c7277cea2611bc3d2c4722de002fe1-0-3c51f278558a0194ca10aaa220a7f094.png/big)
Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is OLED fairly valued? This infographic on the company's intrinsic value has everything you need to know.
收益增长是对股票进行估值时要考虑的重要指标。对于投资者来说,重要的是要知道市场是否对公司的预期收益增长(或下降)进行了定价。这样做将帮助他们确定股票的未来是乐观还是不祥的。OLED 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 Universal Display Using Its Retained Earnings Effectively?
环球显示器能否有效地使用其留存收益?
Universal Display has a healthy combination of a moderate three-year median payout ratio of 26% (or a retention ratio of 74%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.
环球显示的三年派息率中位数为26%(或74%的留存率)和可观的收益增长(如上所示),这是一个健康的组合,这意味着该公司一直在有效利用其利润。
Additionally, Universal Display has paid dividends over a period of seven years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 22%. As a result, Universal Display's ROE is not expected to change by much either, which we inferred from the analyst estimate of 17% for future ROE.
此外,环球显示已在七年内派发了股息,这意味着该公司非常认真地与股东分享利润。我们的最新分析师数据显示,公司未来三年的派息率预计约为22%。因此,环球显示器的投资回报率预计也不会有太大变化,我们从分析师对未来投资回报率为17%的估计中推断了这一点。
Conclusion
结论
Overall, we are quite pleased with Universal Display's performance. 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 a good amount of growth in its earnings. On studying current analyst estimates, we found that analysts expect the company to continue its recent growth streak. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总的来说,我们对环球显示器的表现非常满意。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,这使该公司的收益实现了可观的增长。在研究分析师当前的估计时,我们发现分析师预计该公司将继续保持最近的增长势头。要详细了解分析师对公司的最新预测,请查看该公司的分析师预测的可视化。
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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。