Universal Insurance Holdings, Inc.'s (NYSE:UVE) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Universal Insurance Holdings, Inc.'s (NYSE:UVE) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Universal Insurance Holdings (NYSE:UVE) has had a great run on the share market with its stock up by a significant 9.3% over the last week. 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. Specifically, we decided to study Universal Insurance Holdings' ROE in this article.
通用保险控股公司(纽交所:UVE)的股票在股市上运行良好,在上周上涨了显著的9.3%。考虑到股票价格通常与公司的长期财务表现相一致,我们决定仔细研究它的财务指标,以查看它们是否在最近的价格波动中发挥了作用。具体而言,我们决定在本文中研究通用保险控股公司的roe。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即净资产收益率,是一种评估公司如何有效地从股东手中获取投资回报的有用工具。换句话说,它是一种盈利能力比率,衡量公司股东提供的资本的回报率。
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 Universal Insurance Holdings is:
因此,根据上述公式,通用保险控股公司的roe为:
21% = US$83m ÷ US$393m (Based on the trailing twelve months to June 2024).
21%= US$8300万÷US$39300万(基于截至2024年6月的过去十二个月)。
The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.21.
'回报'是企业在过去一年内获得的收益。这意味着对于每笔股东投资的1美元,公司将赚取0.21美元的利润。
Why Is ROE Important For Earnings Growth?
ROE为什么对净利润增长很重要?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. 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,我们已经了解到roe衡量公司生成利润的效率。根据公司再投资或“保留”的利润比例及其有效性,我们能够评估公司的收益增长潜力。在其他一切保持不变的情况下,roe和利润保留率越高,公司的增长率就越高,相比于那些不一定拥有这些特性的公司。
Universal Insurance Holdings' Earnings Growth And 21% ROE
通用保险控股公司的盈利增长和21%的roe
At first glance, Universal Insurance Holdings seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 13%. For this reason, Universal Insurance Holdings' five year net income decline of 6.9% raises the question as to why the high ROE didn't translate into earnings growth. Therefore, there might be some other aspects that could explain this. Such as, the company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures.
乍一看,通用保险控股公司似乎拥有合理的roe的。此外,该公司的roe与行业平均水平13%相比相当有优势。因此,通用保险控股公司五年的净收益下降了6.9%,这引起了一个问题,即为什么高的roe没有转化为盈利增长。因此,可能有一些其他方面可以解释这一点。例如,该公司将其大部分收益用于分红派息,或面临竞争压力。
However, when we compared Universal Insurance Holdings' growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 10% in the same period. This is quite worrisome.
然而,当我们将通用保险控股公司的增长与行业进行比较时,我们发现尽管公司的盈利正在萎缩,但行业在同一时期实现了10%的盈利增长。这是相当令人担忧的。
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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). This then helps them determine if the stock is placed for a bright or bleak future. Is Universal Insurance Holdings fairly valued compared to other companies? These 3 valuation measures might help you decide.
附加价值评估公司的基础在很大程度上取决于其收益增长。一个投资者知道市场是否已经将公司预期的收益增长(或下降)价格化是很重要的。这有助于他们判断股票是否摆在光明或黯淡的未来。通用保险控股公司与其他公司相比是否公正地价值评估?这3个估值指标可能会帮助您决定。
Is Universal Insurance Holdings Using Its Retained Earnings Effectively?
通用保险控股公司是否有效利用其留存收益?
Looking at its three-year median payout ratio of 27% (or a retention ratio of 73%) which is pretty normal, Universal Insurance Holdings' declining earnings is rather baffling as one would expect to see a fair bit of growth when a company is retaining a good portion of its profits. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.
看看其三年间的中位数支付比率27%(或保留比率为73%),这相当正常,通用保险控股公司的收益下降相当令人困惑,因为人们希望在公司正保留其利润的时候看到很好的增长。因此,在这方面可能会有一些其他解释。例如,该公司的业务可能正在恶化。
Moreover, Universal Insurance Holdings has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth.
此外,通用保险控股公司已经连续十年或更长时间支付股息,这表明管理层必须认为股东更喜欢股息而非盈利增长。
Conclusion
结论
Overall, we feel that Universal Insurance Holdings certainly does have some positive factors to consider. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. With that said, we studied current analyst estimates and discovered that analysts expect the company's earnings growth to improve slightly. The company's existing shareholders might have some respite after all. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
总体而言,我们认为通用保险控股公司确定具有一些积极因素。尽管如此,我们对于即使在高roe和高再投资率的情况下,收益没有增长感到失望。我们相信可能有一些外部因素可能对业务产生负面影响。话虽如此,我们研究了目前的分析师预期,并发现分析师预计该公司的盈利增长略有改善。公司现有的股东最终可能会有所放松。这些分析师的预期是基于行业的广泛预期还是基于公司的基本面?单击此处,以进入我们的分析师预测页面。
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