Are Robust Financials Driving The Recent Rally In Meritage Homes Corporation's (NYSE:MTH) Stock?
Are Robust Financials Driving The Recent Rally In Meritage Homes Corporation's (NYSE:MTH) Stock?
Meritage Homes' (NYSE:MTH) stock is up by a considerable 12% over the past three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to Meritage Homes' ROE today.
在过去的三个月里,meritage homes(纽交所:mth)的股票上涨了12%。由于市场通常会为一家公司的长期基本面付费,我们决定研究该公司的关键业务指标,以确定它们是否可能对市场产生影响。特别是,我们将关注meritage homes(纽交所:mth)的roe(净资产收益率)今天。
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 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 Meritage Homes is:
因此,根据上述公式,meritage homes(纽交所:mth)的roe(净资产收益率)为:
17% = US$838m ÷ US$4.9b (Based on the trailing twelve months to June 2024).
17% = 83800万美元 ÷ 490亿美元(基于截至2024年6月的过去十二个月)。
The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.17.
“回报”是年利润。这意味着,对于每1美元的股东投资,公司可以获得0.17美元的利润。
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. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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,我们已经知道ROE测量公司如何高效地生成利润。基于公司选择重新投资或“保留”其利润的比例,我们能够评估公司未来生成利润的能力。假设其他所有因素保持不变,则ROE和利润保留率越高,公司的增长率也越高,与不一定具备这些特征的公司相比。
A Side By Side comparison of Meritage Homes' Earnings Growth And 17% ROE
对meritage homes的净利润增长和17%的roe进行了并列对比
At first glance, Meritage Homes seems to have a decent ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 15%. This probably goes some way in explaining Meritage Homes' significant 24% net income growth over the past five years amongst other factors. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
乍一看,meritage homes的roe似乎还不错。与行业相比,我们发现平均行业roe也在15%左右。这可能在一定程度上解释了过去五年meritage homes显著的24%净利润增长,其中可能还有其他因素。我们认为这里也可能涉及其他因素,比如 - 高额收益留存或者高效的管理团队。
As a next step, we compared Meritage Homes' net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 22% in the same period.
作为下一步,我们将meritage homes的净利润增长与行业进行了比较,发现该公司在同一时期的增长数据与行业平均增长率22%相当。
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Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Meritage Homes is trading on a high P/E or a low P/E, relative to its industry.
当评估股票时,盈利增长是一个重要的指标。投资者应该尝试确定预期的盈利增长或下降是否已经被定价进去。这样做将帮助他们确定股票的未来是看好还是看淡。预期盈利增长的一个良好指标是市盈率,它根据股票的盈利前景决定市场愿意支付的价格。所以,您可能想要查看meritage homes的市盈率高还是低,相对于其所在行业。
Is Meritage Homes Efficiently Re-investing Its Profits?
meritage homes是否有效地将利润再投资?
Meritage Homes' three-year median payout ratio to shareholders is 4.5%, which is quite low. This implies that the company is retaining 95% 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.
meritage homes三年来股东的中位数派息比率为4.5%,相当低。这意味着公司保留了95%的利润。这表明管理层将大部分利润重新投资于业务的发展,正如公司所见的增长所表明的那样。
While Meritage Homes has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 17% over the next three years. Consequently, the higher expected payout ratio explains the decline in the company's expected ROE (to 14%) over the same period.
尽管meritage homes的盈利增长,但其最近才开始支付股息。很可能是公司决定通过分红来打动新老股东。我们最新的分析师数据显示,未来三年公司的派息比率预计将上升到17%。因此,预期派息比率的提高解释了公司在同期间预期roe下降至14%。
Conclusion
结论
In total, we are pretty happy with Meritage Homes' performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. Having said that, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink in the future. 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.
总体来说,我们对Meritage Homes的业绩非常满意。特别是,在公司大力投资的同时,高收益率也带来了可观的收益增长。然而,我们注意到,根据目前的分析师预测,尽管公司过去的盈利增长,分析师们预计其未来的盈利将会收缩。这些分析师的预期是基于对整个行业的广泛预期,还是基于公司的基本面?点击此处查看我们对该公司的分析师预测页面。
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