Vertex, Inc. (NASDAQ:VERX) Delivered A Weaker ROE Than Its Industry
Vertex, Inc. (NASDAQ:VERX) Delivered A Weaker ROE Than Its Industry
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Vertex, Inc. (NASDAQ:VERX).
虽然一些投资者已经对财务指标非常熟悉(致敬),但这篇文章是给那些想要了解净资产收益率(ROE)及其重要性的人。为了让课程更加实际,我们将使用ROE来更好地了解Vertex公司(纳斯达克代码:VERX)。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
对于股东来说,股东回报率(ROE)是一个重要的考虑因素,因为它告诉股东他们的资本被有效地再投资了多少。换句话说,它是一个衡量公司股东提供的资本回报率的盈利能力比率。
How Is ROE Calculated?
净资产收益率怎么计算?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算:
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 Vertex is:
所以,根据上述公式,Vertex公司的ROE为:
8.5% = US$20m ÷ US$233m (Based on the trailing twelve months to June 2024).
8.5% = 2000万美元 ÷ 2,3300万美元(根据截至2024年6月的过去十二个月)。
The 'return' is the yearly profit. That means that for every $1 worth of shareholders' equity, the company generated $0.08 in profit.
“回报”是每年的利润。这意味着每1美元的股东权益产生了0.08美元的利润。
Does Vertex Have A Good ROE?
Vertex的ROE好吗?
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Vertex has a lower ROE than the average (14%) in the Software industry classification.
通过将一家公司的ROE与同行业平均水平进行比较,我们可以快速评估其表现。但这种方法的局限性在于,即使在同一行业中,有些公司与其他公司相比也存在很大差异。通过查看下面的图像,你可以看到Vertex在软件行业分类中的ROE低于行业平均水平(14%)。
![1724420161561](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240823/42806262-0-cab76375e70e6d8363fbb1a9af5f74f4.webp/bigjpg)
That certainly isn't ideal. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. Our risks dashboard should have the 3 risks we have identified for Vertex.
那肯定不理想。话虽如此,低ROE并不总是一件坏事,尤其是如果公司的负债率很低,这样仍有提升空间,如果公司增加债务,ROE将会改善。高负债率和低ROE的公司是我们愿意避免的。我们的风险仪表盘上应该有我们为Vertex确定的3个风险。
The Importance Of Debt To Return On Equity
债务对股本回报率的重要性
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
几乎所有公司都需要资金来投资业务以实现利润增长。这些资金可以来自发行股票、留存收益或债务。在前两种情况下,ROE将捕捉到这些资本的使用来实现增长。在后一种情况下,用于增长的债务将改善回报率,但不会影响总股本。这将使ROE看起来比不使用债务时更好。
Vertex's Debt And Its 8.5% ROE
Vertex的债务及其8.5%的roe
Vertex clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.43. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Vertex明显利用大量债务来提高回报率,因为其债务与净资产比率为1.43。相对较低的roe和使用债务的显著程度并不特别吸引人。投资者应仔细考虑一家公司如果无法轻松借钱会有怎样的表现,因为信贷市场会随时间而变化。
Conclusion
结论
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股本回报率是衡量企业盈利能力,并将其利润分配给股东的一项有用指标。在我们的清单中,高质量的公司股本回报率高,债务压力不大。如果两家公司的债务资本比大致相同,并且一家公司的ROE更高,则我通常更喜欢具有较高ROE的公司。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking this free report on analyst forecasts for the company.
尽管ROE是业务质量的一个有用指标,但您需要考虑一系列因素,以确定购买股票的正确价格。预计利润增长的速度与当前价格所反映的利润增长预期相对比也必须考虑在内。因此,我认为检查该公司分析师预测的免费报告可能值得一试。
Of course Vertex may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
当然,Vertex可能不是最好的股票买入选择。所以你可能希望查看这个免费的其他具有高roe和低债务的公司的收藏。
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