Woodward, Inc.'s (NASDAQ:WWD) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Woodward, Inc.'s (NASDAQ:WWD) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Most readers would already be aware that Woodward's (NASDAQ:WWD) stock increased significantly by 14% over the past three months. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Specifically, we decided to study Woodward's ROE in this article.
大多数读者可能已经知道,伍德沃德(纳斯达克:WWD)的股价在过去三个月里大幅增长了14%。考虑到股票价格通常与公司的长期财务表现相一致,我们决定更仔细地研究其财务指标,以确定他们是否在最近的价格波动中有所作为。具体而言,我们在本文中决定研究伍德沃德的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. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股东要考虑的关键因素之一是净资产收益率或roe,因为它告诉他们公司如何有效地重新投资他们的资本。简单点说,它衡量了公司与股东权益相关的盈利能力。
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 Woodward is:
因此,按照上述公式,伍德沃德的roe为:
15% = US$355m ÷ US$2.3b (Based on the trailing twelve months to March 2024).
15% = US$3.55亿 ÷ US$23亿(基于截至2024年3月的过去十二个月)。
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 $0.15 in profit.
“回报”是企业在过去一年中获得的收益。换个角度思考,就是对于每1美元的股权,该公司能够获得0.15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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
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。
Woodward's Earnings Growth And 15% ROE
伍德沃德的盈利增长和15%的roe
To begin with, Woodward seems to have a respectable ROE. Further, the company's ROE is similar to the industry average of 14%. However, while Woodward has a pretty respectable ROE, its five year net income decline rate was 2.3% . So, there might be some other aspects that could explain this. For example, it could be that the company has a high payout ratio or the business has allocated capital poorly, for instance.
首先,伍德沃德似乎拥有可观的roe。此外,公司的roe与14%的行业平均水平相似。然而,虽然伍德沃德的roe相当可观,但其五年净收入下降率为2.3%。因此,可能还有其他方面可以解释这一点。例如,公司的派息比率较高,或者业务配置资本不善等。
That being said, we compared Woodward's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 6.4% in the same 5-year period.
话虽如此,我们将伍德沃德的业绩与整个行业进行了比较,并在发现虽然公司的收益下降,但该行业在同一五年期内的收益增长率为6.4%时感到担忧。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240630/0-5c54b51cdf608dbf62c1cfc08ba29f64-0-9eea41afbc9448be82ecd387b200565e.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. Is WWD fairly valued? This infographic on the company's intrinsic value has everything you need to know.
盈利增长是考虑股票价值时需要考虑的重要指标。投资者需要判断的下一步是,预期的盈利增长率或缺乏盈利增长率是否已经融入了股价。通过这样做,他们将知道该股票是朝着明朗的前途还是等待着泥泞的水域。WWD是否被公平地估值了?这份关于公司内在价值的信息图表包含了您需要知道的一切。
Is Woodward Efficiently Re-investing Its Profits?
伍德沃德是否有效地重新投资其利润?
Woodward's low three-year median payout ratio of 22% (or a retention ratio of 78%) over the last three years should mean that the company is retaining most of its earnings to fuel its growth but the company's earnings have actually shrunk. The low payout should mean that the company is retaining most of its earnings and consequently, should see some growth. So there might be other factors at play here which could potentially be hampering growth. For instance, the business has faced some headwinds.
伍德沃德过去三年的中位数派息比率很低,仅为22%(或留存比率为78%),这意味着公司正在保留大部分收益以推动其增长,但公司的收益实际上已经下降。低派息比率应该意味着公司正在保留大部分收益,因此应该看到一些增长。所以可能还有其他因素在起作用,这些因素可能会潜在地阻碍增长。例如,该业务面临一些逆风。
Additionally, Woodward has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 15% over the next three years. Accordingly, the expected drop in the payout ratio explains the expected increase in the company's ROE to 19%, over the same period.
此外,伍德沃德在至少十年的时间里支付了股息,这意味着即使没有盈利增长,公司管理层也决心支付股息。现有的分析师预测表明,未来三年公司的红利支付比率预计将降至15%。因此,预计红利支付比率的下降解释了同期公司roe的预期增加为19%。
Conclusion
结论
Overall, we feel that Woodward certainly does have some positive factors to consider. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. 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.
总的来说,我们认为伍德沃德确实有一些需要考虑的积极因素。虽然,我们对于即使拥有高roe和高再投资率,收益仍然缺乏增长感到失望。我们认为可能有一些外部因素可能对业务产生负面影响。话虽如此,看着当前的分析师预测,我们发现公司的盈利增长率有望大幅提高。要了解有关该公司未来盈利增长预测的更多信息,请查看有关该公司的分析师预测的免费报告。
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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.
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
对本文有反馈?关于内容有所顾虑?直接和我们联系。或者发送电子邮件至editorial-team@simplywallst.com。