Is Northwest Natural Holding Company's (NYSE:NWN) 8.0% ROE Better Than Average?
Is Northwest Natural Holding Company's (NYSE:NWN) 8.0% ROE Better Than Average?
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 Northwest Natural Holding Company (NYSE:NWN), 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來研究西北自然控股公司(紐約證券交易所代碼:NWN),舉一個實例。
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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
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,它用於評估公司相對於其股權資本的盈利能力。
See our latest analysis for Northwest Natural Holding
查看我們對西北自然控股公司的最新分析
How To Calculate Return On Equity?
如何計算股本回報率?
The formula for ROE is:
ROE 的公式是:
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 Northwest Natural Holding is:
因此,根據上述公式,西北自然控股公司的投資回報率爲:
8.0% = US$97m ÷ US$1.2b (Based on the trailing twelve months to September 2023).
8.0% = 9,700萬美元 ¥12億美元(基於截至2023年9月的過去十二個月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.08 in profit.
“回報” 是每年的利潤。概念化這一點的一種方法是,公司每擁有1美元的股東資本,就會獲得0.08美元的利潤。
Does Northwest Natural Holding Have A Good Return On Equity?
西北自然控股有良好的股本回報率嗎?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Northwest Natural Holding has a similar ROE to the average in the Gas Utilities industry classification (8.6%).
可以說,評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。這種方法的侷限性在於,有些公司與其他公司有很大不同,即使屬於相同的行業分類也是如此。如果你看下圖,你會發現西北天然控股公司的投資回報率與燃氣公用事業行業分類中的平均水平相似(8.6%)。
![roe](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231205/0-67ff2e5e1d4050f553a7de1b1368d576-0-fdeb1ac9d593abc285166bcbffe616ea.png/big)
That isn't amazing, but it is respectable. Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels. If a company takes on too much debt, it is at higher risk of defaulting on interest payments. Our risks dashboardshould have the 3 risks we have identified for Northwest Natural Holding.
這並不奇怪,但還是值得尊敬的。儘管投資回報率與該行業相似,但我們仍應進行進一步檢查,以查看高債務水平是否提振了該公司的投資回報率。如果一家公司承擔過多的債務,則拖欠利息的風險就會更高。我們的風險儀表板應包含我們爲西北自然控股公司確定的3種風險。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. 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.
公司通常需要投資來增加利潤。投資現金可以來自上一年的利潤(留存收益)、發行新股或借款。對於第一和第二種選擇,投資回報率將反映這種對現金增長的使用。在後一種情況下,增長所需的債務將提高回報,但不會影響股東權益。通過這種方式,儘管企業的核心經濟保持不變,但債務的使用將提高投資回報率。
Northwest Natural Holding's Debt And Its 8.0% ROE
西北自然控股的債務及其8.0%的投資回報率
Northwest Natural Holding clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.38. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
西北自然控股顯然使用大量債務來提高回報,因爲它的負債權益比率爲1.38。即使使用了大量債務,它的投資回報率也相當低;在我們看來,這不是一個好結果。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。
Summary
摘要
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better.
股本回報率是衡量企業創造利潤並將其返還給股東的能力的有用指標。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。在其他條件相同的情況下,更高的投資回報率更好。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on 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較高的收益倍數進行交易。與股票價格所反映的預期相比,利潤增長率尤其需要考慮。因此,我認爲可能值得查看這份關於分析師對公司的預測的免費報告。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然,通過尋找其他地方,你可能會找到一筆不錯的投資。因此,來看看這份有趣的公司的免費清單吧。
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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.
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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。