Will Weakness in Yalla Group Limited's (NYSE:YALA) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Yalla Group Limited's (NYSE:YALA) Stock Prove Temporary Given Strong Fundamentals?
With its stock down 7.5% over the past week, it is easy to disregard Yalla Group (NYSE:YALA). 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 Yalla Group's ROE today.
在过去的一周里,雅乐科技(纽交所:YALA)的股票下跌了7.5%,很容易忽视它。然而,股票价格通常是由公司的长期财务表现驱动的,而在这种情况下,看起来非常有前景。特别是,我们今天将关注雅乐科技的ROE。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股东权益回报率(ROE)是衡量公司价值增长和管理投资者资金有效性的一项指标。简而言之,ROE展示了每一美元相对于股东投资所带来的利润。
How To Calculate Return On Equity?
如何计算股东权益回报率?
ROE can be calculated by using the formula:
ROE可以通过以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股东权益回报率 = 净利润(来自持续运营)÷ 股东权益
So, based on the above formula, the ROE for Yalla Group is:
因此,根据上述公式,雅乐科技的ROE为:
20% = US$131m ÷ US$670m (Based on the trailing twelve months to September 2024).
20% = 13100万美元 ÷ 67000万美元(基于截至2024年9月的过去十二个月)。
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 $0.20 in profit.
'回报'是指业务在过去一年中赚取的收入。可以通过一种方式来概念化这一点,即对于每1美元的股东资本,公司赚取了0.20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?
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.
我们已经确认ROE作为公司未来收益的有效利润生成指标。现在我们需要评估公司再投资或"保留"多少利润以支持未来增长,这样我们才能了解到公司的增长潜力。一般来说,在其他条件相同的情况下,拥有高股本回报率和利润保留的公司,其增长率往往高于没有这些特征的公司。
Yalla Group's Earnings Growth And 20% ROE
雅乐科技的盈利增长和20%的ROE
To begin with, Yalla Group seems to have a respectable ROE. Especially when compared to the industry average of 7.5% the company's ROE looks pretty impressive. This probably laid the ground for Yalla Group's significant 43% net income growth seen over the past five years. However, there could also be other causes behind this growth. For instance, the company has a low payout ratio or is being managed efficiently.
首先,雅乐科技似乎拥有可观的ROE。特别是与行业平均水平7.5%相比,公司ROE显得相当出色。这很可能为雅乐科技在过去五年中实现的42%的净利润增长奠定了基础。然而,这一增长背后可能还有其他原因。例如,公司拥有较低的分红派息比例,或者管理效率较高。
As a next step, we compared Yalla 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 13%.
作为下一步,我们将雅乐科技的净利润增长与行业进行了比较,令人高兴的是,我们发现公司的增长高于行业平均增长13%。

Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). 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 Yalla Group is trading on a high P/E or a low P/E, relative to its industry.
盈利增长是评估股票时需要考虑的重要指标。投资者需要知道市场是否已经考虑到公司的预期盈利增长(或下降)。这样做将帮助他们判断股票的未来是光明还是暗淡。一个良好的预期盈利增长指标是市盈率,它决定了市场愿意根据股票的盈利前景支付的价格。因此,您可能想检查雅乐科技相较于其行业,是否在高市盈率或低市盈率上交易。
Is Yalla Group Making Efficient Use Of Its Profits?
雅乐科技是否有效利用其利润?
Yalla Group doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above.
雅乐科技没有向其股东支付任何定期分红,这意味着公司一直在将所有利润再投资于业务。这很可能是推动上述高盈利增长数字的原因。
Conclusion
结论
Overall, we are quite pleased with Yalla 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. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. 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,我们对雅乐科技的表现相当满意。具体来说,我们喜欢公司以高回报率再投资其大量利润。当然,这导致公司盈利大幅增长。不过,最新的行业分析师预测显示,公司盈利增长预计将放缓。这些分析师的预期是基于行业的广泛预期,还是公司基本面?点击此处查看我们分析师对该公司的预测页面。
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