Is Everest Group, Ltd.'s (NYSE:EG) Recent Performance Tethered To Its Attractive Financial Prospects?
Is Everest Group, Ltd.'s (NYSE:EG) Recent Performance Tethered To Its Attractive Financial Prospects?
Most readers would already know that Everest Group's (NYSE:EG) stock increased by 4.1% over the past three months. Since the market usually pay for a company's long-term financial health, we decided to study the company's fundamentals to see if they could be influencing the market. Particularly, we will be paying attention to Everest Group's ROE today.
大多数读者可能已经知道,Everest Group (纽交所: EG) 的股价在过去三个月里增长了4.1%。由于市场通常关注公司的长期财务状况,我们决定研究该公司的基本面,以查看它们是否会影响市场。特别地,我们今天将关注Everest Group的roe。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股东权益回报率(roe)是一种关键指标,用于评估公司管理层如何有效利用公司资本。更简单地说,它衡量了公司相对股东权益的盈利能力。
How Do You Calculate Return On Equity?
怎样计算ROE?
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 Everest Group is:
因此,根据上述公式,Everest Group的roe为:
21% = US$2.9b ÷ US$14b (Based on the trailing twelve months to March 2024).
21% = 29亿美元 ÷ 140亿美元(基于截至2024年3月的过去十二个月)。
The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.21 in profit.
'回报'是指公司过去一年的收益。这意味着对于每1美元的股东权益,公司创造了0.21美元的利润。
Why Is ROE Important For Earnings Growth?
ROE对于盈利增长的重要性是什么?
So far, we've learned that ROE is a measure of a company's profitability. 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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
到目前为止,我们已经了解到 ROE 是衡量公司盈利能力的一种指标。现在,我们需要评估公司重新投资或“保留”的利润有多少,以此来衡量公司的成长潜力。其他因素相同的情况下,具有更高的股本回报率和更高的利润保留的公司通常比没有相同特征的公司具有更高的增长率。
Everest Group's Earnings Growth And 21% ROE
Everest Group的净利润增长和21%的roe。
To begin with, Everest Group seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 13%. Probably as a result of this, Everest Group was able to see an impressive net income growth of 31% over the last five years. We believe that there might also 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.
首先,Everest Group的roe似乎相当可观。此外,该公司的roe与行业平均水平13%相比较相当有利。可能是因为这个原因,Everest Group在过去五年中实现了31%的净利润增长。我们认为,可能也有其他一些方面正面地影响公司的收益增长。例如,公司具有较低的派息比率或者正在进行高效管理。
Next, on comparing with the industry net income growth, we found that Everest Group's growth is quite high when compared to the industry average growth of 8.4% in the same period, which is great to see.
接下来,我们将净利润增长率与行业平均增长率进行比较,我们发现Everest Group的增长率相当高,而行业平均增长率为8.4%,这是非常好的。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. 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 Everest Group is trading on a high P/E or a low P/E, relative to its industry.
为一家公司赋予价值的基础在很大程度上与其盈利增长有关。投资者应该尝试确定预期的盈利增长或下降是否已经被定价。然后这有助于他们判断股票是前途光明还是前途暗淡。一项表明预期盈利增长的良好指标是市盈率,它根据公司的盈利前景决定市场愿意为股票支付的价格。因此,您可能需要检查Everest Group的市盈率是否高于或低于其行业水平。
Is Everest Group Making Efficient Use Of Its Profits?
Everest Group是否有效地利用其利润?
Everest Group's three-year median payout ratio to shareholders is 22%, which is quite low. This implies that the company is retaining 78% of its profits. So it looks like Everest Group is reinvesting profits heavily to grow its business, which shows in its earnings growth.
Everest Group三年的股息支付率中位数为22%,相当低。这意味着该公司保留了78%的利润。因此,Everest Group看起来正在大量重新投资其利润以促进其业务增长,这反映在其收益增长中。
Besides, Everest Group has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 12% over the next three years. However, the company's ROE is not expected to change by much despite the lower expected payout ratio.
此外,Everest Group已经连续十年或更长时间支付股息。这表明公司致力于与股东分享利润。在研究最新的分析师一致数据时,我们发现公司未来的派息比率预计将下降到12%。然而,尽管预期派息比率较低,但该公司的roe不会有太大变化。
Conclusion
结论
On the whole, we feel that Everest Group's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总体而言,我们认为Everest Group的绩效相当不错。特别是,公司大量投资其业务,加上高的回报率,使其收益实现了可观增长。即便如此,对最新分析师预测的研究显示该公司的未来收益增长有所减缓。了解有关该公司最新分析师预测的更多信息,请查看该公司分析师预测的可视化信息。
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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?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。