Declining Stock and Decent Financials: Is The Market Wrong About Shoals Technologies Group, Inc. (NASDAQ:SHLS)?
Declining Stock and Decent Financials: Is The Market Wrong About Shoals Technologies Group, Inc. (NASDAQ:SHLS)?
With its stock down 22% over the past three months, it is easy to disregard Shoals Technologies Group (NASDAQ:SHLS). But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Particularly, we will be paying attention to Shoals Technologies Group's ROE today.
SHLS股票过去三个月下跌22%,很容易忽略Shoals Technologies Group(纳斯达克股票代码:SHLS)。但是,如果您仔细观察,您可能会发现其关键财务指标看起来相当不错,这可能意味着,鉴于市场通常会奖励更具弹性的长期基本面,股票在长期内可能会潜在上涨。特别是,我们今天将密切关注Shoals Technologies Group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 Shoals Technologies Group is:
因此,根据上述公式,Shoals Technologies Group的roe为:
5.5% = US$30m ÷ US$554m (Based on the trailing twelve months to March 2024).
5.5%= US$ 3000万÷ US$ 55400万(基于追溯到2024年3月的过去12个月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.05 in profit.
“回报率”是每年的利润。一个概念化的方法是,对于每1美元的股东资本,该公司可以获得0.05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. 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衡量公司如何高效地生成利润。现在我们需要评估公司以后的增长潜力,即公司重新投资或“保留”的利润。其他条件相同的情况下,同时具有较高的股权回报率和较高的利润保留的公司通常是相对于不具备相同特点的公司而言增长率更高的公司。
A Side By Side comparison of Shoals Technologies Group's Earnings Growth And 5.5% ROE
Shoals Technologies Group收益增长和5.5%roe的并排比较
When you first look at it, Shoals Technologies Group's ROE doesn't look that attractive. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 12% either. However, we we're pleasantly surprised to see that Shoals Technologies Group grew its net income at a significant rate of 43% in the last five years. Therefore, there could be other reasons behind this growth. Such as - high earnings retention or an efficient management in place.
当您第一次看到它时,Shoals Technologies Group的roe似乎并不那么有吸引力。快速进一步的研究显示,该公司的roe与12%的行业平均水平相比也不令人满意。但是,令我们惊喜的是,Shoals Technologies Group在过去五年中以显着的43%速率增长了净利润。因此,这种增长背后可能有其他原因,例如高利润保留率或高效的管理。
Next, on comparing with the industry net income growth, we found that Shoals Technologies Group's growth is quite high when compared to the industry average growth of 16% in the same period, which is great to see.
接下来,与行业净收入增长相比,我们发现Shoals Technologies Group的增长在同一时期与行业平均增长16%相比相当高,这是非常好的。
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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. This then helps them determine if the stock is placed for a bright or bleak future. Is Shoals Technologies Group 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),是否已经反映在价格之中。然后,这有助于他们确定股票是处于光明的还是黯淡的未来。Shoals Technologies Group相对于其他公司的估值是否合理?这3个估值指标可能会帮助您做出决定。
Is Shoals Technologies Group Efficiently Re-investing Its Profits?
Shoals Technologies Group是否有效地再投资其利润?
Given that Shoals Technologies Group 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.
考虑到Shoals Technologies Group不向股东支付任何定期股息,我们推断该公司一直在重投所有利润以发展业务。
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。
In total, it does look like Shoals Technologies Group has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. 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,Shoals Technologies Group具有一些积极的业务方面。尽管其回报率较低,但事实证明,该公司将其大部分利润重新投入业务中,无疑是其高增长的原因。话虽如此,最新的行业分析师预测显示该公司的收益增长预计将放缓。如想了解有关该公司的最新分析师预测的更多信息,请查看此分析师预测的可视化工具。
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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.
对本文有任何反馈?对内容有任何疑虑?请直接与我们联系。或者,发送电子邮件至editorial-team@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。