Do Its Financials Have Any Role To Play In Driving LGI Homes, Inc.'s (NASDAQ:LGIH) Stock Up Recently?
Do Its Financials Have Any Role To Play In Driving LGI Homes, Inc.'s (NASDAQ:LGIH) Stock Up Recently?
LGI Homes' (NASDAQ:LGIH) stock is up by a considerable 16% over the past week. 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 LGI Homes' ROE in this article.
过去一周,LGI Homes(纳斯达克:LGIH)的股价上涨了16%。通常,股票价格通常与公司的长期财务表现相一致,因此我们决定更加密切地研究其财务指标,以确定它们是否在最近的股价上涨中发挥了作用。具体而言,我们决定在本文中研究LGI Homes的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE,即净资产收益率,测试一家公司有效增加价值和管理股东资金的能力。换句话说,它揭示了公司将股东投资转化为利润的成功程度。
How Is ROE Calculated?
净资产收益率怎么计算?
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 LGI Homes is:
因此,根据上述公式,LGI Homes的ROE为:
10% = US$189m ÷ US$1.9b (Based on the trailing twelve months to March 2024).
10%= US$ 18900万 ÷ US$ 19亿(基于截至2024年3月的过去十二个月)。
The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.10.
'回报'是年利润。这意味着对于股东的每1美元投资,公司能够产生0.10美元的利润。
What Has ROE Got To Do With Earnings Growth?
ROE与盈利增长有什么关系?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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,我们已经了解到ROE衡量公司利润的效率如何。基于公司选择再投资或保留多少利润,我们随后能够评估公司未来产生利润的能力。总的来说,在其他条件相等的情况下,具有高ROE和利润保留的公司的增长率比没有这些特征的公司要高。
LGI Homes' Earnings Growth And 10% ROE
LGI Homes的盈利增长和10%的ROE
On the face of it, LGI Homes' ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 15% either. Although, we can see that LGI Homes saw a modest net income growth of 5.9% over the past five years. So, there might be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.
从表面上看,LGI Homes的ROE不值一提。进一步的研究表明,该公司的ROE也不比15%的行业平均水平更具优势。尽管如此,我们可以看到LGI Homes在过去五年中的净利润增长率为5.9%,这表明可能有其他方面正面影响了公司的盈利增长。例如,该公司具有较低的派息比率或正在有效管理。
We then compared LGI Homes' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 24% in the same 5-year period, which is a bit concerning.
然后我们将LGI Homes的净利润增长与行业进行了比较,并发现公司的增长数字低于同一5年期间24%的行业平均增长率,这有点令人担忧。
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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. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if LGI Homes is trading on a high P/E or a low P/E, relative to its industry.
盈利增长是股票估值的重要因素。投资者应该试图确定预期的盈利增长或下降(无论哪种情况),是否已经定价。通过这样做,他们将有一个想法,股票是进入明朗状态还是等待沼泽的状态。一项良好的预期盈利增长指标是市盈率,它根据股票的盈利前景确定市场愿意支付的价格。因此,您可能需要检查LGI Homes相对于其行业是否正在交易高市盈率或低市盈率。
Is LGI Homes Making Efficient Use Of Its Profits?
LGI Homes是否有效地利用其利润?
LGI Homes 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.
LGI Homes目前不支付任何常规股息,这实际上意味着它一直在将所有利润再投资到业务中。这肯定有助于实现我们上面讨论的体面的盈利增长数字。
Conclusion
结论
In total, it does look like LGI Homes has some positive aspects to its business. Namely, its respectable earnings growth, which it achieved due to it retaining most of its profits. However, given the low ROE, investors may not be benefitting from all that reinvestment after all. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. 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,看起来LGI Homes业务有一些积极方面。即,它具有可观的盈利增长,这是由于它保留大部分利润实现的。然而,由于低ROE,投资者可能并没有从所有再投资中受益。即便如此,通过查看当前的分析师预期,我们发现该公司的盈利预计将获得势头。这些分析师预期是基于行业的总体预期还是基于公司的基本面?单击此处,进入我们的分析师预测页面。
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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.
对本文有反馈?对内容感到担忧?请直接与我们联系。或者,发送电子邮件至editorial-team (at) simplywallst.com。
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?对内容感到担忧?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。