Eaton's (NYSE:ETN) Returns Have Hit A Wall
Eaton's (NYSE:ETN) Returns Have Hit A Wall
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don't think Eaton (NYSE:ETN) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
如果你不确定下一个多倍增长的起点在哪里,那么你应该留意一些关键趋势。 通常,我们要注意到资本回报率(ROCE)正在增长的趋势,同时也是资本使用的不断扩大。 如果你看到这个趋势,通常意味着这是一个拥有出色的商业模式和许多有利可图的再投资机会的公司。但是,经过简短地查看过数字后,我们认为伊顿(NYSE:ETN)未来不太可能成为多倍增长的公司,但让我们看看可能的原因。
Return On Capital Employed (ROCE): What Is It?
资本雇用回报率(ROCE)是什么?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Eaton, this is the formula:
对于那些不知道什么是ROCE的人,ROCE是衡量公司年利润(即回报)与业务所使用的资本之间的关系的方法。要计算伊顿的这个度量标准,使用的公式是:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
资产雇用回报率(ROCE)是指企业利润,即企业税前利润除以企业投入的总资本(负债加股权)。如果ROCE高于企业财务成本的承受能力,那么企业就会创造出更多的价值。
0.13 = US$4.1b ÷ (US$39b - US$7.6b) (Based on the trailing twelve months to March 2024).
0.13 = 41亿美元 ÷ (390亿美元 - 7.6亿美元)(基于最近12个月截至2024年3月)。
Thus, Eaton has an ROCE of 13%. By itself that's a normal return on capital and it's in line with the industry's average returns of 13%.
因此,伊顿的ROCE为13%。 单独看来,这是一项正常的资本回报率,并且它与行业平均回报率13%保持一致。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240726/0-43a85457ff2c0b14b16fe922dba9a355-0-c61c84b95c2344509bfa1a9abdfcab86.png/big)
In the above chart we have measured Eaton's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Eaton .
在上述图表中,我们将伊顿以往的ROCE与其业绩进行了比较,但未来或许更为重要。 如果您感兴趣,您可以查看我们为伊顿免费提供的分析师报告中的分析师预测。
What Does the ROCE Trend For Eaton Tell Us?
伊顿的ROCE趋势为我们提供了什么信息?
There hasn't been much to report for Eaton's returns and its level of capital employed because both metrics have been steady for the past five years. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. So don't be surprised if Eaton doesn't end up being a multi-bagger in a few years time. This probably explains why Eaton is paying out 33% of its income to shareholders in the form of dividends. Unless businesses have highly compelling growth opportunities, they'll typically return some money to shareholders.
过去五年间,伊顿的回报和使用的资本水平都保持稳定。 当查看一家成熟和稳定的企业时,看到这种情况并不罕见,因为它可能已经经过了企业周期的阶段,不会再进行再投资。 因此,如果未来几年伊顿不能成为多倍增长的公司,也不要感到惊讶。这可能解释了为什么伊顿将其33%的收入以股息形式分配给股东。除非企业有极具吸引力的增长机会,否则它们通常会将一些钱分配给股东。
The Key Takeaway
重要提示
In a nutshell, Eaton has been trudging along with the same returns from the same amount of capital over the last five years. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 307% gain to shareholders who have held over the last five years. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
简而言之,伊顿在过去五年中一直以相同的资本回报率和相同的资本数量缓慢前进。投资者必须认为会有更好的前景,因为这支股票表现出色,对那些在过去五年持有股票的股东提供了307%的回报。但是,如果这些潜在趋势的轨迹继续下去,我们认为从现在开始成为多倍增长的公司的可能性不高。
If you're still interested in Eaton it's worth checking out our FREE intrinsic value approximation for ETN to see if it's trading at an attractive price in other respects.
如果您仍然对伊顿感兴趣,那么值得查看我们为ETN免费提供的内在价值近似值,以查看该股在其他方面是否具有吸引力的价格。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果您想寻找财务状况良好、回报卓越的实力强企业,可以免费查看以下公司列表。
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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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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。