Declining Stock and Decent Financials: Is The Market Wrong About Fox Factory Holding Corp. (NASDAQ:FOXF)?
Declining Stock and Decent Financials: Is The Market Wrong About Fox Factory Holding Corp. (NASDAQ:FOXF)?
With its stock down 19% over the past month, it is easy to disregard Fox Factory Holding (NASDAQ:FOXF). However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to Fox Factory Holding's ROE today.
鉴于最近一个月里Fox Factory Holding (纳斯达克:FOXF)的股价下跌了19%,有人可能会忽视这家公司。 但是,公司的基本面看起来相当不错,长期的财务状况通常与未来的市场价格走势相一致。 特别是,我们将关注今天Fox Factory Holding的ROE。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股东必须考虑股本回报率或ROE,因为它告诉他们公司如何有效地重新投资他们的资本。 简而言之,ROE显示每美元股东投资所产生的利润。
How Do You Calculate Return On Equity?
怎样计算ROE?
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 Fox Factory Holding is:
那么,基于上述公式,Fox Factory Holding的ROE为:
3.4% = US$41m ÷ US$1.2b (Based on the trailing twelve months to June 2024).
3.4% = US$4100万 ÷ US$12亿(根据截至2024年6月的过去12个月)。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.03 in profit.
‘回报’是企业在过去一年中赚取的收入。 一个理解这个概念的方法是,对于每1美元的股东资本,公司利润为0.03美元。
What Is The Relationship Between ROE And Earnings Growth?
ROE与盈利增长之间的关系是什么?
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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前为止,我们已经了解了roe衡量公司利润产生效率的程度。现在我们需要评估公司为未来增长而重新投资或“保留”的利润数量,然后了解公司的增长潜力。假设其他一切不变,roe和利润保留率越高,公司的增长率就越高,而与不一定具备这些特征的公司相比,这种增长率的相对性就越高。
A Side By Side comparison of Fox Factory Holding's Earnings Growth And 3.4% ROE
一份详细比较表显示Fox Factory Holding的盈利增长和3.4%的ROE。
It is hard to argue that Fox Factory Holding's ROE is much good in and of itself. Even when compared to the industry average of 11%, the ROE figure is pretty disappointing. However, the moderate 9.0% net income growth seen by Fox Factory Holding over the past five years is definitely a positive. We believe that there might 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.
很难说Fox Factory Holding的ROE本身非常好。 即使与11%的行业平均水平相比,ROE的数字也相当令人失望。 但是,Fox Factory Holding在过去五年中适度的9.0%净收入增长绝对是一个积极的方面。 我们认为,可能还有其他方面对公司的盈利增长产生积极影响。例如,公司有低的派息比率或被有效地管理。
We then compared Fox Factory Holding's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 15% in the same 5-year period, which is a bit concerning.
我们随后将Fox Factory Holding的净收入增长与行业进行了比较,并发现公司在同一5年期间的增长数字低于平均行业增长率的15%,这有点令人担忧。
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Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. Is Fox Factory Holding fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增长是股票估值的重要因素。投资者需要确定下一步的预期盈利增长(或其缺乏)是否已经包含在股价中。 这样做将有助于他们确定该股票的未来前景是有前途还是危险。 与其他公司相比,Fox Factory Holding的估值是否合理? 这3项估值指标可能会帮助您做出决策。
Is Fox Factory Holding Using Its Retained Earnings Effectively?
Fox Factory Holding是否有效地利用其留存收益?
Fox Factory Holding doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above.
Fox Factory Holding目前不支付任何常规股息,这基本上意味着它一直在将其所有利润重新投资到企业中。 这肯定有助于上文所述的不错的盈利增长数字。
Conclusion
结论
In total, it does look like Fox Factory Holding has some positive aspects to its business. That is, a decent growth in earnings backed by a high rate of reinvestment. However, we do feel that that earnings growth could have been higher if the business were to improve on the low ROE rate. Especially given how the company is reinvesting a huge chunk of its profits. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总的来说,Fox Factory Holding的业务具有一些积极的方面。即,盈利增长适度且受到高额再投资的支持。 但是,我们认为,如果业务能够提高低的ROE率,其盈利增长可能会更高。 尤其是考虑到该公司重新投资了大量利润。然而,通过查看当前的分析师预测,我们发现该公司的盈利预期将会上升。 要了解有关该公司未来盈利增长预测的更多信息,请查看此免费报告以了解分析师对该公司的预测。
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