Will Weakness in RenaissanceRe Holdings Ltd.'s (NYSE:RNR) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in RenaissanceRe Holdings Ltd.'s (NYSE:RNR) Stock Prove Temporary Given Strong Fundamentals?
It is hard to get excited after looking at RenaissanceRe Holdings' (NYSE:RNR) recent performance, when its stock has declined 3.7% 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. Specifically, we decided to study RenaissanceRe Holdings' ROE in this article.
RenaissanceRe Holdings (NYSE: RNR)近三个月股价下跌3.7%,不太令人兴奋。然而,股票价格通常受公司长期财务表现推动,在这种情况下,迈出了相当有前途的一步。本文将重点研究RenaissanceRe Holdings的roe。
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. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE(净资产收益率)是股东需考虑的一个重要因素,因为它告诉他们资本被有效地再投资的效果如何。换句话说,它揭示了公司将股东的投资转化为利润的成功程度。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润(从持续经营中获得)÷ 股东权益
So, based on the above formula, the ROE for RenaissanceRe Holdings is:
因此,根据上述公式,RenaissanceRe Holdings的ROE为21%= US $ 3.4b ÷ US $ 16b(基于截至2024年3月的最近十二个月)。
21% = US$3.4b ÷ US$16b (Based on the trailing twelve months to March 2024).
“回报”是指公司过去一年的收益。这意味着,对于每美元的股东投资,该公司产生了0.21美元的利润。
The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.21.
RenaissanceRe Holdings的收益增长和21%的ROE
What Has ROE Got To Do With Earnings Growth?
ROE与盈利增长有什么关系?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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 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.
我们已经确定ROE是衡量公司未来盈利能力的有效指标。基于公司选择再投资或“留存”利润的比例,我们可以评估公司未来生成利润的能力。其他条件相同的情况下,具有更高净资产收益率和更高利润留存率的公司通常比没有这些特点的公司增长率更高。
RenaissanceRe Holdings' Earnings Growth And 21% ROE
首先,RenaissanceRe Holdings的ROE看起来是可以接受的。与行业平均ROE 13%的比较表明,公司的ROE相当出色。这可能为RenaissanceRe Holdings过去五年中适度的9.8%净收入增长奠定了基础。
To start with, RenaissanceRe Holdings' ROE looks acceptable. On comparing with the average industry ROE of 13% the company's ROE looks pretty remarkable. This probably laid the ground for RenaissanceRe Holdings' moderate 9.8% net income growth seen over the past five years.
我们随后对RenaissanceRe Holdings的净收入增长与行业进行了比较,发现该公司的增长与同一5年期内8.4%的行业平均增长类似。
We then performed a comparison between RenaissanceRe Holdings' net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 8.4% in the same 5-year period.
NYSE:RNR过去的收益增长2024年6月11日
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240612/0-0f03376d11cba1deffcda621dc7215f6-0-503d25d304e692904f0df770e2e70b48.png/big)
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if RenaissanceRe Holdings is trading on a high P/E or a low P/E, relative to its industry.
RenaissanceRe Holdings是否有效地重新投资其利润?
Is RenaissanceRe Holdings Efficiently Re-investing Its Profits?
在RenaissanceRe Holdings的情况下,其可观的盈利增长可能可以通过其低的近十二个月(或最近十二个月)支付比率为3.3%(或留存比率为97%)来解释,这表明公司正在投资大部分利润以发展业务。
In RenaissanceRe Holdings' case, its respectable earnings growth can probably be explained by its low LTM (or last twelve month) payout ratio of 3.3% (or a retention ratio of 97%), which suggests that the company is investing most of its profits to grow its business.
此外,RenaissanceRe Holdings在至少十年的时间内支付了股息,这意味着公司非常重视与股东分享利润。从当前的分析师共识数据来看,我们可以看到公司未来的支付比率预计将在未来三年内上升至4.5%。因此,预期支付比率的上升解释了为什么公司的ROE预计会在同一时期下降至16%。
Additionally, RenaissanceRe Holdings has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Looking at the current analyst consensus data, we can see that the company's future payout ratio is expected to rise to 4.5% over the next three years. Therefore, the expected rise in the payout ratio explains why the company's ROE is expected to decline to 16% over the same period.
总的来说,我们认为RenaissanceRe Holdings的表现相当不错。特别的,看到公司正在大力投资到业务中,并且伴随着高回报率,导致了其收益的可观增长。话虽如此,在研究最新的分析师预测时,我们发现虽然该公司过去的收益增长,但分析师预计其未来的收益将会缩水。要了解更多关于该公司的最新分析师预测,请查看该公司的分析师预测可视化。
Conclusion
结论
On the whole, we feel that RenaissanceRe Holdings' performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
在本文中,RenaissanceRe Holdings的表现相当不错。特别的,看到公司正在大力投资到业务中,并且伴随着高回报率,导致了其收益的可观增长。话虽如此,在研究最新的分析师预测时,我们发现虽然该公司过去的收益增长,但分析师预计其未来的收益将会缩水。要了解更多关于该公司的最新分析师预测,请查看该公司的分析师预测可视化。
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