Are Robust Financials Driving The Recent Rally In Cars.com Inc.'s (NYSE:CARS) Stock?
Are Robust Financials Driving The Recent Rally In Cars.com Inc.'s (NYSE:CARS) Stock?
Most readers would already be aware that Cars.com's (NYSE:CARS) stock increased significantly by 15% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study Cars.com's ROE in this article.
大多数读者可能已经意识到，Cars.com的(NYSE:CARS)股票在过去三个月里大幅上涨了15%。考虑到市场长期看重强劲的财务状况，我们想知道这在这种情况下是否成立。具体而言，我们决定在本文中研究Cars.com的ROE。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或ROE是一项用于评估公司管理层如何利用公司资本的效率的关键指标。简而言之，它用于评估公司相对于其股本资本的盈利能力。
How Do You Calculate Return On Equity?
怎样计算ROE?
ROE can be calculated by using the formula:
净资产收益率可以使用以下公式进行计算：
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 Cars.com is:
因此，根据以上公式，Cars.com的ROE为：
22% = US$108m ÷ US$481m (Based on the trailing twelve months to March 2024).
22% = 108百万美元 ÷ 481百万美元(截至2024年3月的过去十二个月)。
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.22 in profit.
“回报”指的是一家公司过去一年的收益。换句话说，对于每1美元的股本，公司能够赚取0.22美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
既然我们已经确定ROE是一种有效的利润生成标准，用于评估公司未来的盈利能力，我们现在需要评估公司“保留”为未来增长而重新投资的利润多少，这使我们对公司的增长潜力有了一个了解。一般而言，在其他条件相等的情况下，ROE和利润留存高的公司，增长率比没有这些属性的公司要高。
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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.
我们已经确认roe是一个有效的盈利指标，用于衡量公司未来的盈利能力。现在我们需要评估公司为未来增长重新投资或“保留”的利润有多少，这将给我们提供有关公司增长潜力的想法。假设其他一切相等，具有更高回报率和更高盈利保留的公司通常比没有同样特点的公司具有更高的增长率。
Cars.com's Earnings Growth And 22% ROE
Cars.com的收益增长和22%的ROE
To begin with, Cars.com seems to have a respectable ROE. On comparing with the average industry ROE of 7.4% the company's ROE looks pretty remarkable. Probably as a result of this, Cars.com was able to see an impressive net income growth of 58% over the last five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
首先，Cars.com似乎有一个体面的ROE。与行业平均ROE 7.4%相比，公司的ROE看起来相当引人注目。可能由于这个原因，Cars.com在过去五年中的净收入增长了58%。我们相信，也可能有其他方面对公司的收益增长产生积极影响。例如，公司的管理层可能做出了一些良好的战略决策，或者公司的派息比率较低。
As a next step, we compared Cars.com's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 6.0%.
作为下一步，我们将Cars.com的净收入增长与行业进行了比较，并且令人高兴的是，我们发现公司所看到的增长比平均行业增长6.0％高。
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. If you're wondering about Cars.com's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增长是考虑估值时需要考虑的重要指标。投资者需要确定的下一步是，预期的收益增长或其缺乏是否已经反映在股价中。通过这样做，他们将了解到股票是朝着明朗未来发展还是陷入困境。如果你想了解Cars.com的估值，请查看其市盈率与所属行业的比较。
Is Cars.com Using Its Retained Earnings Effectively?
Cars.com是否有效地利用了其留存收益？
Cars.com doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.
Cars.com不向其股东支付任何定期股息，这意味着公司一直将所有利润重新投资到业务中。这很可能就是上述高收益增长数字的推动力。
Summary
总的来说，我们对伟明环保的表现非常满意。具体而言，我们喜欢公司以高回报率再投资了其利润的很大一部分。当然，这导致公司的收益大幅增长。但是，最新的行业分析师预测表明，该公司的收益预计将加速增长。
In total, we are pretty happy with Cars.com's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总体而言，我们对Cars.com的表现非常满意。特别是，我们喜欢公司大量重投业务，并以较高的回报率进行投资。不出所料，这导致了卓越的收益增长。也就是说，最新的行业分析师预测显示，公司的收益增长预期将放缓。有关该公司未来收益增长预测的更多信息，请查看此免费的分析师预测报告。
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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