IDT Corporation's (NYSE:IDT) Stock Is Going Strong: Is the Market Following Fundamentals?
IDT Corporation's (NYSE:IDT) Stock Is Going Strong: Is the Market Following Fundamentals?
IDT (NYSE:IDT) has had a great run on the share market with its stock up by a significant 26% over the last month. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to IDT's ROE today.
IDT(紐約證券交易所代碼：IDT)的股票在過去一個月裡大幅上漲了26%。鑑於該公司令人印象深刻的業績，我們決定更仔細地研究其財務指標，因為公司的長期財務健康狀況通常決定著市場結果。特別是，今天我們將關注IDT的淨資產收益率。
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率或淨資產收益率是股東要考慮的一個重要因素，因為它告訴他們他們的資本再投資的效率。簡而言之，它衡量的是一家公司相對於股東權益的盈利能力。
Check out our latest analysis for IDT
查看我們對IDT的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率？
ROE can be calculated by using the formula:
可使用以下公式計算淨資產收益率：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率=(持續經營的)淨利潤？股東權益
So, based on the above formula, the ROE for IDT is:
因此，根據上面的公式，IDT的ROE為：
21% = US$44m ÷ US$210m (Based on the trailing twelve months to July 2023).
21%=4400萬美元×2.1億美元(基於截至2023年7月的12個月的往績)。
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 $0.21 in profit.
“回報”指的是企業在過去一年中獲得的收入。一種將其概念化的方法是，公司每擁有1美元的股東資本，就能獲得0.21美元的利潤。
Why Is ROE Important For Earnings Growth?
為什麼淨資產收益率對收益增長很重要？
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. 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.
到目前為止，我們已經瞭解到淨資產收益率衡量的是一家公司創造利潤的效率。根據公司將這些利潤再投資或“保留”多少，以及這樣做的效率如何，我們就能夠評估一家公司的收益增長潛力。一般來說，在其他條件相同的情況下，股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
A Side By Side comparison of IDT's Earnings Growth And 21% ROE
IDT盈利增長與21%淨資產收益率的並列比較
To begin with, IDT seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 11%. Probably as a result of this, IDT was able to see an impressive net income growth of 39% over the last five years. However, there could also be other causes behind this growth. Such as - high earnings retention or an efficient management in place.
首先，IDT似乎擁有令人尊敬的淨資產收益率。此外，該公司的淨資產收益率(ROE)與行業平均水準11%相比相當有利。或許正因為如此，IDT在過去五年中的淨收入增長了39%，令人印象深刻。然而，這種增長背後也可能有其他原因。例如-高收益留存或有效的管理到位。
We then compared IDT's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 8.5% in the same 5-year period.
然後，我們將IDT的淨收入增長與行業進行了比較，我們很高興地看到，與同期8.5%的行業增長率相比，該公司的增長數位更高。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. 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 IDT is trading on a high P/E or a low P/E, relative to its industry.
賦予一家公司價值的基礎在很大程度上與其盈利增長掛鉤。投資者應該嘗試確定預期的收益增長或下降是否已計入價格，無論是哪種情況。通過這樣做，他們將知道股票是將進入清澈的藍色水域，還是等待沼澤水域。衡量預期收益增長的一個很好的指標是本益比，它根據一隻股票的盈利前景決定市場願意為其支付的價格。因此，你可能想看看IDT相對於其行業是高本益比還是低本益比。
Is IDT Making Efficient Use Of Its Profits?
IDT是否在有效利用其利潤？
IDT doesn't pay any dividend 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.
IDT目前不支付任何股息，這實際上意味著它一直在將所有利潤再投資於該業務。這無疑是我們上面討論的高收益增長數位的原因。
Summary
摘要
On the whole, we feel that IDT's performance has been quite good. 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.
整體來說，我們覺得IDT的表現相當不錯。特別是，很高興看到該公司在業務上投入了大量資金，並獲得了高回報率，這導致了其收益的可觀增長。
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本文由Simply Wall St.撰寫，具有概括性.我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議.它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況.我們的目標是為您帶來由基本面數據驅動的長期重點分析.請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內.Simply Wall St.對上述任何一隻股票都沒有持倉.