Is On Holding AG's (NYSE:ONON) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
Is On Holding AG's (NYSE:ONON) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
On Holding's (NYSE:ONON) stock is up by a considerable 25% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to On Holding's ROE today.
在过去的三个月中，On Holding (NYSE:ONON) 的股价上涨了相当可观的25%。鉴于市场在长期内奖励强大的财务状况，我们想知道这种情况是否也适用于此。特别是今天我们将关注On Holding的roe值。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或ROE是一项用于评估公司管理层如何利用公司资本的效率的关键指标。简而言之，它用于评估公司相对于其股本资本的盈利能力。
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 On Holding is:
因此，根据以上公式，On Holding的roe值为：
11% = CHF127m ÷ CHF1.2b (Based on the trailing twelve months to March 2024).
11% = CHF12700万 ÷ CHF12亿（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. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.11.
“回报”是过去十二个月的利润。这意味着，对于股东投资的每1美元，公司可以获得0.11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？
So far, we've learned that ROE is a measure of a company's profitability. 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. 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。根据公司选择重新投资或'保留'多少利润，我们就能够评估公司未来生成利润的能力。假设其他条件相同，那些具有更高股本回报率和更高利润留存的公司通常比没有这些特征的公司有更高的增长率。
On Holding's Earnings Growth And 11% ROE
On Holding的收益增长和11%的roe值
To begin with, On Holding seems to have a respectable ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 13%. Consequently, this likely laid the ground for the impressive net income growth of 49% seen over the past five years by On Holding. However, there could also be other drivers behind this growth. 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.
首先，On Holding似乎具有一个体面的roe值。并且与行业相比，我们发现平均行业roe值也大致相同，约为13%。因此，这很可能为On Holding过去五年中惊人的49%净利润增长奠定了基础。不过，这种增长背后可能还有其他驱动因素。例如，公司管理层可能做出了一些好的战略决策，或者公司的股息支付率较低。
As a next step, we compared On Holding's 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 18%.
作为下一步，我们将On Holding的净收入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率高于平均行业增长率18%。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for ONON? You can find out in our latest intrinsic value infographic research report.
附加价值的基础很大程度上取决于企业的盈利增长。投资者需要确定的下一步是，预期的盈利增长或其缺乏是否已经反映在股价中。通过这样做，他们将了解股票是否正在进入清晰明确的境地，还是即将面临困境。市场中是否已经为ONON的未来前景定价？您可以在我们的最新内在价值信息图研究报告中了解更多。
Is On Holding Using Its Retained Earnings Effectively?
On Holding是否有效地利用了保留利润？
Given that On Holding doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鉴于On Holding不向股东支付任何定期股息，我们推断该公司一直将其所有利润再投资于业务扩展。
Conclusion
结论
In total, we are pretty happy with On Holding's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial 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.
总的来说，我们非常满意On Holding的表现。具体来说，我们喜欢公司高利润率下的大量利润再投资，这自然导致公司的收益大幅增长。然而，最新的分析师预测研究表明，该公司预计未来的盈利增长将放缓。要了解有关公司的最新分析师预测的更多信息，请查看此可视化分析师预测报告。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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。