What American Water Works Company, Inc.'s (NYSE:AWK) ROE Can Tell Us
What American Water Works Company, Inc.'s (NYSE:AWK) ROE Can Tell Us
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of American Water Works Company, Inc. (NYSE:AWK).
虽然一些投资者已经精通财务指标(向帽子致敬),但本文是给那些想要了解净资产收益率(ROE)及其重要性的人。通过学以致用,我们将观察ROE,以便更好地了解美国水务公司(NYSE: AWK)。
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 To Calculate Return On Equity?
如何计算股东权益报酬率?
The formula for ROE is:
roe的公式是:
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 American Water Works Company is:
因此,根据上述公式,美国水务公司的ROE为:
9.6% = US$959m ÷ US$10b (Based on the trailing twelve months to March 2024).
9.6%= 9.59亿美元÷ 100亿美元(基于截至2024年3月的过去十二个月)。
The 'return' is the profit over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.10 in profit.
“回报”是过去十二个月的利润。另一种思考方式是,对于每个1美元的股本,公司能够赚取0.10美元的利润。
Does American Water Works Company Have A Good ROE?
美国水务公司具有良好的ROE吗?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. The image below shows that American Water Works Company has an ROE that is roughly in line with the Water Utilities industry average (9.6%).
通过将公司的ROE与其行业平均水平进行比较,我们可以快速衡量公司的好坏。这种方法的局限性在于,即使在同一行业分类中,有些公司与其他公司非常不同。下图显示,美国水务公司的ROE大致与水利公用事业行业的平均水平(9.6%)相当。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240703/0-b90d70c008fb2e591e916ec851dde957-0-58904497787d12b065119302f3c38a64.png/big)
That isn't amazing, but it is respectable. Even if the ROE is respectable when compared to the industry, its worth checking if the firm's ROE is being aided by high debt levels. If a company takes on too much debt, it is at higher risk of defaulting on interest payments. Our risks dashboardshould have the 2 risks we have identified for American Water Works Company.
虽然与行业相比ROE还算可观,但我们还是需要检查公司的ROE是否受高负债的影响。如果公司承担过多的债务,那么违约的风险就会更高。我们的风险仪表板应该显示了我们为美国水务公司确定的2个风险。
Why You Should Consider Debt When Looking At ROE
为什么在观察ROE时你应该考虑债务问题?
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
大多数公司需要资金——从某个地方——来增加其利润。这笔资金可以来自发行股票、保留收益或债务。在第一和第二种情况下,ROE将反映此类资金的使用,以促进增长。在后一种情况下,债务的使用将提高回报,但不会改变权益。通过这种方式,虽然业务的核心经济学保持不变,但债务的使用仍将提高ROE。
American Water Works Company's Debt And Its 9.6% ROE
美国水务公司的债务及其9.6%的ROE
American Water Works Company does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.31. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
美国水务公司确实使用了大量的债务来提高回报。其负债与股本比率为1.31。即使使用了大量的债务,其ROE仍然相当低,这不是一个好结果。投资者应仔细考虑,如果公司无法轻松获得借贷,它将如何表现,因为信贷市场确实会随着时间的推移而发生变化。
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。
Return on equity is one way we can compare its business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股东权益回报率是比较不同公司业务质量的方法之一。可以在没有太多债务的情况下实现高股东权益回报率的公司通常质量较好。如果两家公司的负债权益比大约相同,并且一家公司ROE较高,我通常更喜欢ROE较高的公司。
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to check this FREE visualization of analyst forecasts for the company.
但是,当一个公司业务高品质时,市场通常会将其推高到反映这一点的价格。应该考虑利润增长的速度,相对于当前价格反映的利润增长预期的速度。因此,您可能希望检查这家公司的分析师预测的免费可视化效果。
But note: American Water Works Company may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但请注意:美国水务公司可能不是最好的股票。因此,请查看此免费列表,其中包括具有高ROE和低债务的有趣公司。
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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。