Has Grand Canyon Education, Inc.'s (NASDAQ:LOPE) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Has Grand Canyon Education, Inc.'s (NASDAQ:LOPE) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Grand Canyon Education (NASDAQ:LOPE) has had a great run on the share market with its stock up by a significant 15% over the last three months. 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. In this article, we decided to focus on Grand Canyon Education's ROE.
大峡谷教育(纳斯达克股票代码:LOPE)在过去的三个月里在股票市场上表现出色,其股票价格大幅上涨15%。由于股票价格通常与公司的长期财务表现相关,我们决定更仔细地研究其财务指标,看看它们是否在最近的股价走势中起到了作用。在这篇文章中,我们决定重点关注大峡谷教育的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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股本回报率或roe是评估公司管理层如何有效利用公司资本的关键指标。简而言之,ROE显示每美元股东投资所产生的利润。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
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 Grand Canyon Education is:
因此,基于上述公式,大峡谷教育的roe为:
28% = US$213m ÷ US$759m (Based on the trailing twelve months to March 2024).
28%=美元21300万 ÷美元75900万(基于截至2024年3月的最近十二个月)。
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.28 in profit.
“回报”是过去12个月内的利润。一种概念化的方法是,对于每1美元的股东资本,公司获得了0.28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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
我们已经确定roe对于公司未来收益的有效衡量工具。根据公司再投资或“留存”这些利润的程度及其有效性,我们随后可以评估公司的收益增长潜力。一般而言,其他条件相同的情况下,roe和利润留存率较高的公司比不具备这些属性的公司具有更高的增长率。
Grand Canyon Education's Earnings Growth And 28% ROE
大峡谷教育的盈利增长和28%的roe
Firstly, we acknowledge that Grand Canyon Education has a significantly high ROE. Secondly, even when compared to the industry average of 14% the company's ROE is quite impressive. As you might expect, the 5.7% net income decline reported by Grand Canyon Education doesn't bode well with us. We reckon that there could be some other factors at play here that are preventing the company's growth. These include low earnings retention or poor allocation of capital.
首先,我们认识到大峡谷教育的roe相当高。其次,即使与行业平均水平的14%相比,公司的roe也非常令人印象深刻。正如你所期望的,大峡谷教育报告的5.7%净收入下降对我们来说并不好。我们认为可能有一些其他因素在起作用,从而阻止了公司的增长。这些因素包括低收益保留或资本配置差。
However, when we compared Grand Canyon Education's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 19% in the same period. This is quite worrisome.
然而,当我们将大峡谷教育的增长与行业进行比较时,我们发现,尽管该公司的收益在萎缩,但该行业在同一时期内的收益增长了19%。这非常令人担忧。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. What is LOPE worth today? The intrinsic value infographic in our free research report helps visualize whether LOPE is currently mispriced by the market.
给公司附加价值的基础在很大程度上与其盈利增长相关。对于投资者来说,了解市场是否已经定价了公司预期的盈利增长(或下降)非常重要。这样做将有助于他们确定股票的未来前景是否看好或不祥。今天LOPE值多少钱?我们的免费研究报告中的内在价值信息图表可以帮助您可视化LOPE当前是否被市场错误定价。
Is Grand Canyon Education Using Its Retained Earnings Effectively?
大峡谷教育是否有效地利用了其保留收益?
Because Grand Canyon Education doesn't pay any regular dividends, we infer that it is retaining all of its profits, which is rather perplexing when you consider the fact that there is no earnings growth to show for it. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.
由于大峡谷教育不支付任何定期股息,我们推断其保留了所有利润,而这在考虑其没有盈利增长的情况下非常令人困惑。因此,在这方面可能会有一些其他的解释。例如,公司可能的业务可能正在恶化。
Conclusion
结论
Overall, we feel that Grand Canyon Education certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. 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,我们认为大峡谷教育肯定有一些值得考虑的积极因素。然而,盈利增长的低迷还是有点令人担忧,尤其是考虑到公司具有很高的回报率,并且正在重新投资其大部分利润。从表面上看,可能有一些其他因素,不一定受业务控制,正在阻止增长。话虽如此,我们研究了最新的分析师预测,并发现即使该公司过去收益有所缩水,分析师也希望其未来的收益将会增长。要了解有关公司的最新分析师预测的更多信息,请查看该公司的分析师预测可视化。
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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。