Mueller Water Products, Inc.'s (NYSE:MWA) Recent Stock Performance Looks Decent- Can Strong Fundamentals Be the Reason?
Mueller Water Products, Inc.'s (NYSE:MWA) Recent Stock Performance Looks Decent- Can Strong Fundamentals Be the Reason?
Mueller Water Products' (NYSE:MWA) stock up by 9.2% over the past three months. Since the market usually pay for a company's long-term financial health, we decided to study the company's fundamentals to see if they could be influencing the market. In this article, we decided to focus on Mueller Water Products' ROE.
过去三个月 Mueller Water Products (纽交所:MWA) 的股价上涨了9.2%。由于市场通常为公司的长期财务健康买单,我们决定研究该公司的基本面,以确定它们是否可能影响市场。在本文中,我们决定关注 Mueller Water Products 的ROE。
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.
股东权益回报率ROE是测试公司增值能力和管理股东投资的有效性的指标。更简单地说,它衡量公司在股东权益中的盈利能力。
How Is ROE Calculated?
净资产收益率怎么计算?
The formula for return on equity is:
权益回报率的计算公式是:
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 Mueller Water Products is:
因此,根据上述公式,Mueller Water Products 的ROE为:
13% = US$100m ÷ US$755m (Based on the trailing twelve months to March 2024).
13% = US$100m ÷ US$755m (基于过去十二个月至2024年3月的数据)。
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 $0.13 in profit.
“回报”是企业上一年度所赚取的收入。就像这样,对于每1美元的股权,公司能够赚取0.13美元的利润。
What Has ROE Got To Do With Earnings Growth?
ROE与盈利增长有什么关系?
So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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,我们已经了解了roe是公司盈利能力的一种衡量标准。根据公司重新投资或“保留”的利润数量和效率,我们可以评估公司的盈利增长潜力。假设其他所有因素保持不变,roe和保留的利润越高,相对于不一定具有这些特征的公司,公司的增长率就越高。
A Side By Side comparison of Mueller Water Products' Earnings Growth And 13% ROE
Mueller Water Products 收益增长和13% ROE的侧比较
To begin with, Mueller Water Products seems to have a respectable ROE. Further, the company's ROE is similar to the industry average of 14%. This probably goes some way in explaining Mueller Water Products' moderate 5.6% growth over the past five years amongst other factors.
首先,Mueller Water Products 的ROE似乎相当不错。此外,该公司的ROE与行业平均水平相当,为14%。这可能在一定程度上解释了该公司在过去五年中保持5.6%的适度增长以及其他因素。
Next, on comparing with the industry net income growth, we found that Mueller Water Products' reported growth was lower than the industry growth of 8.9% over the last few years, which is not something we like to see.
接下来,与行业净收入增长相比,我们发现 Mueller Water Products 的报告增长低于过去几年行业的8.9%,这是我们不想看到的。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240620/0-6d9a798507dec9d85c3b6e6e44e3db3e-0-931ecff330f8c2edb94dc0098a9acaa6.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). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Mueller Water Products''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增长是衡量一只股票价值的重要指标。投资者了解市场是否已经计入了公司的预期收益增长(或下降)非常重要。这有助于评估股票是否前景光明或暗淡。如果您想了解 Mueller Water Products 的估值,请查看其与行业的市盈率比较。
Is Mueller Water Products Using Its Retained Earnings Effectively?
Mueller Water Products 有效地利用保留利润吗?
With a three-year median payout ratio of 47% (implying that the company retains 53% of its profits), it seems that Mueller Water Products is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
通过过去三年的中位数股息支付比率为47%(意味着该公司保留了53%的利润),似乎 Mueller Water Products 正在以一种有效的方式进行再投资,以获得合理的盈利增长并支付保持良好的股息。
Moreover, Mueller Water Products is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 27% over the next three years.
此外,Mueller Water Products 决定继续与股东分享其利润,这可以从该公司至少十年支付股息的历史中推断出来。我们最新的分析师数据显示,该公司未来三年的股息支付比率预计将降至27%。
Conclusion
结论
On the whole, we feel that Mueller Water Products' performance has been quite good. 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. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
总体而言,我们认为 Mueller Water Products 的表现相当不错。具体而言,我们喜欢该公司以高回报率再投资其利润的巨大份额。当然,这导致了该公司盈利增长的相当大幅度。不过我们注意到,根据目前的分析师预测,该公司的盈利预计将获得动力。这些分析师的预期基于行业的整体预期,还是公司的基本面?请单击此处访问我们的分析师预测页面。
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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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