EMCOR Group, Inc.'s (NYSE:EME) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
EMCOR Group, Inc.'s (NYSE:EME) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity With its stock down 5.5% over the past month, it is easy to disregard EMCOR Group (NYSE:EME). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on EMCOR Group's ROE.
EMCOR Group (NYSE:EME)股价在过去一个月下跌5.5%，很容易被人忽略。然而，更仔细地观察它的良好财务状况可能会让你再次思考。考虑到基本面通常驱动长期市场结果，该公司值得关注。本文将着眼于EMCOR Group的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股东权益回报率（ROE）是测试公司如何有效地增加其价值并管理投资者资金的指标。简而言之，它用于评估公司相对于股本资本的盈利能力。
How Is ROE Calculated?
净资产收益率怎么计算？
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 EMCOR Group is:
因此，根据上述公式，EMCOR Group的roe为：
30% = US$826m ÷ US$2.7b (Based on the trailing twelve months to June 2024).
30% = US$82600万 ÷ US$27亿（基于过去12个月截至2024年6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 $0.30 in profit.
'回报'是企业过去一年赚取的收入。可以这样概念化，即在每1美元股东资本中，公司盈利0.30美元。
Why Is ROE Important For Earnings Growth?
ROE为什么对净利润增长很重要？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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. 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是公司未来赚钱能力的有效衡量标准。现在我们需要评估公司为未来增长而再投资或“保留”的利润。这样，我们就能了解公司的增长潜力。一般而言，在其他条件相等的情况下，具有高净资产收益率和利润保留率的公司，比那些不具备这些特点的公司有更高的增长率。
EMCOR Group's Earnings Growth And 30% ROE
EMCOR Group的盈利增长和30%的roe
To begin with, EMCOR Group has a pretty high ROE which is interesting. Secondly, even when compared to the industry average of 13% the company's ROE is quite impressive. So, the substantial 24% net income growth seen by EMCOR Group over the past five years isn't overly surprising.
首先，EMCOR Group拥有相当高的roe，这很有趣。其次，即使与行业平均水平13%相比，该公司的roe仍非常印象深刻。因此，EMCOR Group在过去五年中实现了可观的24%净利润增长，这并不令人过度惊讶。
As a next step, we compared EMCOR Group'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EMCOR Group的净利润增长与该行业进行了比较，令人高兴的是，我们发现该公司的增长高于该行业平均增长率18%。
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is EME fairly valued? This infographic on the company's intrinsic value has everything you need to know.
盈利增长是股票估值的重要因素。投资者知道市场是否已经定价了公司的预期盈利增长(或下降)是很重要的。这有助于他们判断股票的未来前景是光明的还是黯淡的。EME是否公允定价？这份关于公司内在价值的信息图表包含了你需要知道的一切。
Is EMCOR Group Using Its Retained Earnings Effectively?
EMCOR Group是否有效利用了留存收益？
EMCOR Group's three-year median payout ratio to shareholders is 6.5%, which is quite low. This implies that the company is retaining 93% of its profits. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.
EMCOR Group三年的股东中位数支付比率为6.5%，相当低。这意味着公司保留了93%的利润。这表明管理层正在重新投资大部分利润来发展业务，正如公司的增长所证明的那样。
Besides, EMCOR Group has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.
此外，EMCOR Group在过去的十年或更长时间里一直在支付股息。这表明公司致力于与股东分享利润。
Conclusion
结论
In total, we are pretty happy with EMCOR Group'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，我们对EMCOR Group的表现感到非常满意，特别是因为该公司正在以较高的回报率重新投资巨额利润。当然，这导致了公司盈利的大幅增长。然而，最新的分析师预测显示，该公司未来的盈利增长将放缓。想了解更多关于该公司的最新分析师预测，请查看这份反映该公司分析师预测的可视化内容。
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