Declining Stock and Solid Fundamentals: Is The Market Wrong About Yelp Inc. (NYSE:YELP)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Yelp Inc. (NYSE:YELP)?
Yelp (NYSE:YELP) has had a rough three months with its share price down 5.3%. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Particularly, we will be paying attention to Yelp's ROE today.
Yelp(纽约证券交易所代码:YELP)经历了艰难的三个月,其股价下跌了5.3%。但是,股票价格通常由公司的长期财务业绩驱动,在这种情况下,这看起来很有希望。特别是,我们今天将关注Yelp的投资回报率。
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.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键指标。简而言之,投资回报率显示了每美元从其股东投资中产生的利润。
How Is ROE Calculated?
ROE 是如何计算的?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Yelp is:
因此,根据上述公式,Yelp的投资回报率为:
19% = US$138m ÷ US$735m (Based on the trailing twelve months to June 2024).
19% = 1.38亿美元 ÷ 7.35亿美元(基于截至2024年6月的过去十二个月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.19 in profit.
“回报” 是每年的利润。对此进行概念化的一种方法是,该公司每拥有1美元的股东资本,就能获得0.19美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系?
So far, we've learned that ROE is a measure of a company's profitability. 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. 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.
到目前为止,我们已经了解到,投资回报率是衡量公司盈利能力的指标。然后,我们能够评估公司的收益增长潜力,具体取决于公司对这些利润进行再投资或 “保留” 了多少及其有效性。一般而言,在其他条件相同的情况下,股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。
Yelp's Earnings Growth And 19% ROE
Yelp的收益增长和19%的投资回报率
At first glance, Yelp seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 6.7%. This certainly adds some context to Yelp's exceptional 35% net income growth seen over the past five years. We believe that there might also 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.
乍一看,Yelp的投资回报率似乎不错。此外,该公司的投资回报率与行业平均水平的6.7%相比相当不错。这无疑为Yelp在过去五年中惊人的35%净收入增长增添了一些背景信息。我们认为,可能还有其他方面对公司的收益增长产生积极影响。例如,该公司的派息率较低或管理效率很高。
Next, on comparing with the industry net income growth, we found that Yelp's growth is quite high when compared to the industry average growth of 9.1% in the same period, which is great to see.
接下来,与行业净收入增长相比,我们发现与同期9.1%的行业平均增长率相比,Yelp的增长相当高,这真是太好了。
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. 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 Yelp is trading on a high P/E or a low P/E, relative to its industry.
为公司附加价值的基础在很大程度上与其收益增长息息相关。对于投资者来说,重要的是要知道市场是否对公司的预期收益增长(或下降)进行了定价。然后,这可以帮助他们确定股票是面向光明还是暗淡的未来。衡量预期收益增长的一个很好的指标是市盈率,它根据收益前景决定了市场愿意为股票支付的价格。因此,您可能需要检查Yelp相对于其行业是以高市盈率还是低市盈率进行交易。
Is Yelp Using Its Retained Earnings Effectively?
Yelp是否有效地使用了其留存收益?
Yelp 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 high earnings growth number that we discussed above.
Yelp目前不支付任何定期分红,这实质上意味着它一直在将所有利润再投资于该业务。这无疑促成了我们上面讨论的高收益增长数字。
Summary
摘要
On the whole, we feel that Yelp's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. 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. 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.
总的来说,我们觉得Yelp的表现相当不错。特别是,我们喜欢该公司对其业务进行大量再投资,而且回报率很高。毫不奇怪,这带来了令人印象深刻的收益增长。既然如此,对分析师最新预测的研究表明,预计该公司未来的收益增长将放缓。这些分析师的预期是基于对该行业的广泛预期,还是基于公司的基本面?点击此处进入我们分析师对公司的预测页面。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对这篇文章有反馈吗?对内容感到担忧吗?请直接联系我们。或者,也可以发送电子邮件至编辑团队 (at) simplywallst.com。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。