Is PNM Resources, Inc.'s (NYSE:PNM) ROE Of 4.0% Concerning?
Is PNM Resources, Inc.'s (NYSE:PNM) ROE Of 4.0% Concerning?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. To keep the lesson grounded in practicality, we'll use ROE to better understand PNM Resources, Inc. (NYSE:PNM).
我们做的最好的投资之一就是提升自己的知识和技能。本文将介绍如何使用ROE(净资产收益率)更好地理解业务。为了使这个课程更具实用性,我们将使用ROE更好地了解PNm Resources, Inc.(纽交所:PNM)。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即净资产收益率,是一种评估公司如何有效地从股东手中获取投资回报的有用工具。换句话说,它是一种盈利能力比率,衡量公司股东提供的资本的回报率。
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 PNM Resources is:
因此,根据上述公式,PNm Resources的ROE为:
4.0% = US$96m ÷ US$2.4b (Based on the trailing twelve months to March 2024).
4.0%= US$9600万 ÷ US$24亿(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 $0.04 in profit.
“回报”是公司过去一年所赚取的收入。换句话说,对于每$1的净资产,公司可以赚取$0.04的利润。
Does PNM Resources Have A Good Return On Equity?
PNm Resources的净资产收益率(ROE)如何?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, PNM Resources has a lower ROE than the average (8.9%) in the Electric Utilities industry.
确定一个公司的净资产收益率是否良好的一个简单方法是将其与所在行业的平均水平进行比较。但要注意,这远非一种完美的衡量标准,因为即使是同一行业的公司也会有显著的差异。如下图所示,PNm Resources的ROE低于电力公用股行业的平均水平(8.9%)。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240712/0-b80689ae7cb571619df85d2650a589fd-0-3797ef23aa90f6634f5605623995b244.png/big)
That's not what we like to see. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. A high debt company having a low ROE is a different story altogether and a risky investment in our books. You can see the 5 risks we have identified for PNM Resources by visiting our risks dashboard for free on our platform here.
这不是我们想看到的。但是,低ROE并不总是坏事。如果公司的债务水平适中或较低,则仍有通过使用财务杠杆来提高收益的机会。高负债公司的低ROE则是完全不同的故事,是我们投资书中的高风险投资。您可以在此处免费访问我们的风险仪表板,了解我们已经为PNm Resources确定的5个风险。
How Does Debt Impact Return On Equity?
债务如何影响股东回报率?
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
公司通常需要投资以增加利润。投资所需的现金可以来自于前年的利润(保留收益),发行新股票或借款。在第一种和第二种情况下,ROE将反映用于投资企业的现金使用情况。在后一种情况下,用于增长的债务将改善回报,但不会影响总股本。这将使ROE看起来比不使用债务好。
Combining PNM Resources' Debt And Its 4.0% Return On Equity
综合考虑PNm Resources的负债和其4.0%的净资产收益率
PNM Resources clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.02. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
PNm Resources显然使用了大量债务来提高收益,因为其负债股本比率为2.02。相对较低的ROE和显著的债务使用的组合并不特别吸引人。债务增加了风险并减少了公司的未来选择,因此您通常希望使用它能看到一些良好的回报。
Conclusion
结论
Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
ROE是我们可以比较不同公司业务质量的一种方式,能够在不使用债务的情况下实现高ROE的公司可以被认为是高质量的企业,其他情况相等的情况下,较高的ROE更佳。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. 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 I think it may be worth checking this free report on analyst forecasts for the company.
尽管ROE是公司质量的一个有用指标,但您必须查看一系列因素才能确定购买股票的正确价格。还必须考虑利润增长率与当前股票价格反映的利润增长预期相对的速度。因此,我认为值得查看公司分析师预测的免费报告。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果您想查看另一家具有潜在优越财务状况的公司,则不要错过此具有高ROE和低债务的有趣公司的免费列表。
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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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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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