Should You Be Worried About JELD-WEN Holding, Inc.'s (NYSE:JELD) 13% Return On Equity?
Should You Be Worried About JELD-WEN Holding, Inc.'s (NYSE:JELD) 13% Return On Equity?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine JELD-WEN Holding, Inc. (NYSE:JELD), by way of a worked example.
許多投資者仍在學習分析股票時可能有用的各種指標。本文適用於那些想了解股本回報率(ROE)的人。我們將使用ROE來研究JELD-WEN Holding, Inc.(紐約證券交易所代碼:JELD),舉一個行之有效的例子。
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股本回報率或投資回報率是股東需要考慮的重要因素,因爲它可以告訴他們資本再投資的有效性。簡而言之,投資回報率顯示了每美元從其股東投資中產生的利潤。
Check out our latest analysis for JELD-WEN Holding
查看我們對 JELD-WEN Holding 的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率?
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for JELD-WEN Holding is:
因此,根據上述公式,JELD-WEN Holding的投資回報率爲:
13% = US$107m ÷ US$837m (Based on the trailing twelve months to September 2023).
13% = 1.07億美元 ¥8.37億美元(基於截至2023年9月的過去十二個月)。
The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.13.
“回報” 是企業在過去一年中獲得的收入。因此,這意味着其股東每投資1美元,公司就會產生0.13美元的利潤。
Does JELD-WEN Holding Have A Good Return On Equity?
JELD-WEN Holding 的股本回報率是否良好?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As shown in the graphic below, JELD-WEN Holding has a lower ROE than the average (19%) in the Building industry classification.
確定一家公司是否具有良好的股本回報率的一種簡單方法是將其與行業的平均水平進行比較。重要的是,這遠非完美的衡量標準,因爲同一行業分類中的公司差異很大。如下圖所示,JELD-WEN Holding的投資回報率低於建築行業分類中的平均水平(19%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231119/0-bc5d69369e9fff483cfff7b407e9e35c-0-6c6456f52e4bc3c68364fcc17f101700.png/big)
Unfortunately, that's sub-optimal. However, a low ROE is not always bad. If the company's debt levels are moderate to low, then there's still a chance that returns can be improved via the use of financial leverage. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved.
不幸的是,這並不理想。但是,低投資回報率並不總是壞事。如果公司的債務水平處於中度至低水平,那麼仍然有可能通過使用財務槓桿來提高回報。考慮到所涉及的風險,我們希望避免將高債務水平和低投資回報率的公司結合起來。
Why You Should Consider Debt When Looking At ROE
爲什麼在考慮投資回報率時應該考慮債務
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
幾乎所有公司都需要資金來投資該業務,以增加利潤。投資現金可以來自上一年度的利潤(留存收益)、發行新股或借款。在前兩種情況下,投資回報率將捕捉到資本的這種增長用途。在後一種情況下,增長所需的債務將提高回報,但不會影響股東的權益。通過這種方式,債務的使用將提高投資回報率,儘管業務的核心經濟保持不變。
Combining JELD-WEN Holding's Debt And Its 13% Return On Equity
合併JELD-WEN Holding的債務及其13%的股本回報率
It's worth noting the high use of debt by JELD-WEN Holding, leading to its debt to equity ratio of 1.38. While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
值得注意的是,JELD-WEN Holding大量使用債務,使其負債權益比率爲1.38。儘管其投資回報率相當可觀,但該公司目前的債務額並不理想。債務確實帶來了額外的風險,因此只有當一家公司從中獲得可觀的回報時,債務才真正值得。
Conclusion
結論
Return on equity is one way we can compare its business quality of different companies. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率是我們可以比較不同公司的業務質量的一種方式。能夠在不負債過多的情況下獲得高股本回報的公司通常質量很好。如果兩家公司的投資回報率相同,那麼我通常更喜歡負債較少的公司。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. 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 you might want to check this FREE visualization of analyst forecasts for the company.
但是投資回報率只是更大難題中的一部分,因爲高質量的企業通常以高倍的收益進行交易。還必須考慮利潤可能增長的速度,相對於當前價格所反映的利潤增長預期。因此,您可能需要查看該公司的分析師預測的免費可視化效果。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果你更願意去另一家公司——一家財務狀況可能優越的公司——那麼千萬不要錯過這份免費的股本回報率高、債務低的有趣公司的名單。
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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。