Should Weakness in Loews Corporation's (NYSE:L) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Loews Corporation's (NYSE:L) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
With its stock down 2.9% over the past three months, it is easy to disregard Loews (NYSE:L). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Loews' ROE in this article.
在过去的三个月中,股票下跌了2.9%,很容易忽略洛斯(纽交所:L)。然而,股票价格通常受公司长期的财务状况的影响,在这种情况下,看起来相当可观。具体而言,在本文中,我们决定研究洛斯(Loews)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 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 Loews is:
因此,根据以上公式,洛斯的roe为:
9.6% = US$1.6b ÷ US$17b (Based on the trailing twelve months to March 2024).
9.6%= 16亿美元 ÷ 170亿美元(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. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.10 in profit.
“回报”是企业在过去一年中赚取的收入。 一种概念化这一点的方法是,对于每1美元的股东资本,公司赚取了0.10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。
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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.
到目前为止,我们已经了解了ROE衡量公司产生利润的效率。现在,我们需要评估公司为未来增长“留存”的利润或“保留”多少,这就让我们对公司的增长潜力有了一个想法。一般来说,其他条件相同的情况下,ROE和利润保留较高的公司比没有这些属性的公司具有更高的增长率。
A Side By Side comparison of Loews' Earnings Growth And 9.6% ROE
洛斯的收益增长和9.6%的roe并列比较
When you first look at it, Loews' ROE doesn't look that attractive. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 13%. In spite of this, Loews was able to grow its net income considerably, at a rate of 28% in the last five years. We reckon that there could be other factors at play here. 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.
当您首次查看时,洛斯的roe看起来并不那么吸引人。然后,我们将公司的roe与更广泛的行业相比较,很失望地发现roe低于13%的行业平均水平。尽管如此,洛斯的净利润在过去五年中以28%的速度增长。我们认为可能有其他因素在起作用。例如,公司的管理层可能做出了一些不错的战略决策,或者公司的支付比率很低。
As a next step, we compared Loews' 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 7.9%.
作为下一步,我们将洛斯的净利润增长与行业进行了比较,令人高兴的是,我们发现公司的增长高于7.9%的行业平均增长率。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240705/0-86c99b1d866348edbd6174128a530823-0-a5e970711c571a31ed220094415bb21d.png/big)
Earnings growth is a huge factor in stock valuation. 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 Loews fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是股票估值的重要因素。投资者应该尝试确定预期的收益增长或下降,无论哪种情况,是否已定价。然后,这可以帮助他们确定股票将面临光明还是黯淡的未来。与其他公司相比,洛斯的估值是否合理?这3个估值措施可能会帮助您做出决定。
Is Loews Efficiently Re-investing Its Profits?
洛斯是否有效地再投资其利润?
Loews' three-year median payout ratio to shareholders is 4.2%, which is quite low. This implies that the company is retaining 96% of its profits. So it looks like Loews is reinvesting profits heavily to grow its business, which shows in its earnings growth.
洛斯的3年中位数股东派息比率为4.2%,相当低。这意味着公司保留了96%的利润。因此,看起来洛斯正在大量重新投资利润以发展业务,这反映在其收益增长中。
Moreover, Loews 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.
此外,洛斯决心继续向股东分红,这可以从其至少十年支付股息的悠久历史中推断出。
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。
Overall, we feel that Loews certainly does have some positive factors to consider. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 1 risk we have identified for Loews visit our risks dashboard for free.
总体而言,我们认为洛斯肯定有一些积极因素需要考虑。尽管roe低,但由于高比例的再投资,公司成功实现了收益的相当大的增长。虽然我们不会完全忽略公司,但我们会尝试确定业务的风险程度,以做出更明智的决策。了解我们为洛斯确认的1个风险,可免费访问我们的风险仪表板。
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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
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