Will Weakness in Five Below, Inc.'s (NASDAQ:FIVE) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Five Below, Inc.'s (NASDAQ:FIVE) Stock Prove Temporary Given Strong Fundamentals?
With its stock down 39% over the past three months, it is easy to disregard Five Below (NASDAQ:FIVE). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Five Below's ROE.
由于其股价在过去三个月中下跌了39％，很容易忽视Five Below（纳斯达克股票代码：FIVE）。但是，仔细观察其稳健的财务状况可能会让你重新考虑。鉴于基本面通常会推动长期市场业绩，因此该公司值得关注。在本文中，我们决定重点关注 Five Below 的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。简而言之，它用于评估公司相对于其股权资本的盈利能力。
How Is ROE Calculated?
ROE 是如何计算的？
The formula for return on equity is:
股本回报率的公式是：
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 Five Below is:
因此，根据上述公式，Five Below 的投资回报率为：
19% = US$295m ÷ US$1.6b (Based on the trailing twelve months to May 2024).
19% = 2.95亿美元 ÷ 16亿美元（基于截至2024年5月的过去十二个月）。
The 'return' is the yearly profit. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.19 in profit.
“回报” 是每年的利润。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0.19美元的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要？
So far, we've learned that ROE is a measure of a company's profitability. 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 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。现在，我们需要评估公司再投资或 “保留” 了多少利润以用于未来的增长，从而使我们对公司的增长潜力有所了解。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。
Five Below's Earnings Growth And 19% ROE
Five Below's的收益增长和19％的投资回报率
To begin with, Five Below seems to have a respectable ROE. Even when compared to the industry average of 19% the company's ROE looks quite decent. This probably goes some way in explaining Five Below's moderate 17% growth over the past five years amongst other factors.
首先，Five Below的投资回报率似乎相当不错。即使与行业平均水平的19％相比，该公司的投资回报率也相当不错。这可能在某种程度上解释了Five Below在过去五年中17％的温和增长以及其他因素。
As a next step, we compared Five Below's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 23% in the same period.
下一步，我们将Five Below的净收入增长与该行业进行了比较，并失望地看到该公司的增长低于同期23％的行业平均增长。
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is FIVE 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。无论如何，投资者应设法确定预期的收益增长或下降是否已计入其中。然后，这可以帮助他们确定股票是为光明还是暗淡的未来而布局。FIVE 的估值是否合理？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 Five Below Using Its Retained Earnings Effectively?
Five Belower 能否有效使用其留存收益？
Five Below doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above.
Five Below目前不支付任何定期分红，这实质上意味着它一直在将所有利润再投资于该业务。这无疑有助于实现我们上面讨论的可观的收入增长数字。
Summary
摘要
Overall, we are quite pleased with Five Below's performance. 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 respectable growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. 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.
总的来说，我们对Five Below的表现非常满意。特别是，很高兴看到该公司正在对其业务进行大量投资，再加上高回报率，这为其收益带来了可观的增长。话虽如此，正如分析师目前的估计所预测的那样，该公司的收益增长预计将放缓。这些分析师的预期是基于对该行业的广泛预期，还是基于公司的基本面？点击此处进入我们分析师对公司的预测页面。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对这篇文章有反馈吗？对内容感到担忧？直接联系我们。 或者，给编辑团队 (at) simplywallst.com 发送电子邮件。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对这篇文章有反馈吗？对内容感到担忧？直接联系我们。 或者，发送电子邮件至 editorial-team@simplywallst.com