Earnings Growth of 2.4% Over 3 Years Hasn't Been Enough to Translate Into Positive Returns for American Water Works Company (NYSE:AWK) Shareholders
Earnings Growth of 2.4% Over 3 Years Hasn't Been Enough to Translate Into Positive Returns for American Water Works Company (NYSE:AWK) Shareholders
Many investors define successful investing as beating the market average over the long term. But if you try your hand at stock picking, you risk returning less than the market. We regret to report that long term American Water Works Company, Inc. (NYSE:AWK) shareholders have had that experience, with the share price dropping 21% in three years, versus a market return of about 19%.
长期而言,许多投资者认为成功的投资应该是超过市场平均水平。但是如果您尝试选股,您可能面临着低于市场回报的风险。我们很遗憾地报告说,长期持有美国水务公司(纽交所:AWK)的股东们已经有了这种经历,股价在三年内下跌了21%,而市场回报率只有大约19%。
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
考虑到过去一周对股东来说是艰难的,让我们调查一下基本面并看看我们能学到什么。
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
引用本杰明·格雷厄姆的话:短期内市场是一个投票机,但长期来看它是一个称重机。评估公司周边环境的情绪变化的一种有缺陷但合理的方法是将每股收益(EPS)与股价进行比较。
Although the share price is down over three years, American Water Works Company actually managed to grow EPS by 7.5% per year in that time. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Alternatively, growth expectations may have been unreasonable in the past.
尽管在三年内股价下跌,美国水务公司实际上在此期间成功的每年EPS增长了7.5%。鉴于股价反应,人们可能会怀疑在这段时期内EPS是否是业绩表现的良好指标(可能由于一次性的亏损或收益所导致)。或者,过去的增长预期可能是不合理的。
It's worth taking a look at other metrics, because the EPS growth doesn't seem to match with the falling share price.
值得一提的是,在三年的时间里,营业收入实际上年增长了32%,因此这似乎不是出售股票的理由。很可能需要进一步调查中国儒意控股,因为我们在分析中可能会漏掉一些内容,而这也可能是一个机会。
We note that, in three years, revenue has actually grown at a 3.3% annual rate, so that doesn't seem to be a reason to sell shares. It's probably worth investigating American Water Works Company further; while we may be missing something on this analysis, there might also be an opportunity.
我们注意到,在三年内,营业收入实际上以每年3.3%的速度增长,因此这似乎不是出售股票的原因。进一步调查美国水务公司的业务可能是值得的;虽然我们在分析中可能会失落了某些事情,但也可能会有机会。
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
您可以看到以下收益和营收的变化情况(通过单击图像了解精确值)。
![earnings-and-revenue-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240612/0-e0c68081cd521add6c1bc94c3e56e54f-0-c313a13a44c86edfb5af0029d97334a3.png/big)
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling American Water Works Company stock, you should check out this free report showing analyst profit forecasts.
我们喜欢内部人士在过去12个月中一直在购买该公司的股票。与此同时,大多数人认为收益和营收的增长趋势是更有意义的业务指南。如果您正在考虑购买或出售美国水务公司的股票,则应查看此免费报告,其中显示了分析师的盈利预测。
What About Dividends?
那么分红怎么样呢?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for American Water Works Company the TSR over the last 3 years was -16%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
除了计算股价回报率之外,投资者还应考虑股东总回报率(TSR)。 TSR是一个回报率计算,它考虑到现金分红的价值(假设收到的任何股息都重新投资),以及任何折价资本募集和分拆的计算价值。可以说,TSR为支付股息的股票提供了更完整的图片。我们注意到,在过去的3年中,美国水务公司的TSR为-16%,这比上述股价回报率要好。无需猜测,分红付款基本上是解释这种差异的原因!
A Different Perspective
不同的观点
American Water Works Company shareholders are down 11% for the year (even including dividends), but the market itself is up 23%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for American Water Works Company you should be aware of, and 1 of them is a bit concerning.
美国水务公司的股东在今年已经减少了11%(即使包括分红),但市场本身上升了23%。即使优秀的股票价格有时也会下跌,但在我们对业务基本指标的兴趣增强之前,我们希望看到业务基本指标的改善。长期投资者不会太失望,因为他们在过去五年中每年赚取了4%。最近的抛售可能是一个机会,因此可能值得检查基本数据是否存在长期增长趋势的迹象。 尽管有市场条件对股价产生不同影响的影响是值得考虑的,但还有其他更重要的因素。重要的是:我们已经发现了有关美国水务公司的两个警告信号,您应该注意其中1个有些令人担忧。
American Water Works Company is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.
美国水务公司不是唯一一家内部人士在购买的股票。因此,请查看此免费列表,其中显示了有吸引力的小盘公司的估值,内部人士一直在购买这些股票。
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
请注意,本文所引述的市场回报反映了目前在美国交易所上市的股票的市场加权平均回报。
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