Could The Market Be Wrong About Flex Ltd. (NASDAQ:FLEX) Given Its Attractive Financial Prospects?
Could The Market Be Wrong About Flex Ltd. (NASDAQ:FLEX) Given Its Attractive Financial Prospects?
It is hard to get excited after looking at Flex's (NASDAQ:FLEX) recent performance, when its stock has declined 2.4% over the past three months. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Flex's ROE.
看看偉創力(納斯達克股票代碼:FLEX)最近的表現,很難感到興奮,當時其股票在過去三個月中下跌了2.4%。但是,仔細觀察其穩健的財務狀況可能會讓您重新考慮。鑑於基本面通常會推動長期市場業績,該公司值得一看。在本文中,我們決定重點關注Flex的投資回報率。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
Check out our latest analysis for Flex
查看我們對 Flex 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 Flex is:
因此,根據上述公式,Flex的投資回報率爲:
19% = US$1.2b ÷ US$6.4b (Based on the trailing twelve months to September 2023).
19% = 12億美元 ¥64億美元(基於截至2023年9月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.19 in profit.
“回報” 是過去十二個月的稅後收入。將其概念化的一種方法是,公司每擁有1美元的股東資本,就能獲得0.19美元的利潤。
What Has ROE Got To Do With Earnings Growth?
投資回報率與收益增長有什麼關係?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經了解到,投資回報率衡量的是公司創造利潤的效率。現在,我們需要評估公司再投資或 “保留” 了多少利潤以用於未來的增長,從而使我們對公司的增長潛力有所了解。假設其他一切保持不變,那麼與不一定具有這些特徵的公司相比,投資回報率和利潤保留率越高,公司的增長率就越高。
Flex's Earnings Growth And 19% ROE
Flex的收益增長和19%的投資回報率
To start with, Flex's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 11%. This certainly adds some context to Flex's exceptional 40% 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. Such as - high earnings retention or an efficient management in place.
首先,Flex的投資回報率看起來可以接受。此外,該公司的投資回報率與行業平均水平的11%相比相當不錯。這無疑爲Flex在過去五年中實現40%的驚人淨收入增長提供了一些背景信息。我們認爲,可能還有其他方面對公司的收益增長產生積極影響。例如-高收入留存率或有效的管理。
Next, on comparing with the industry net income growth, we found that Flex's growth is quite high when compared to the industry average growth of 15% in the same period, which is great to see.
接下來,與行業淨收入增長相比,我們發現,與同期行業平均增長15%相比,Flex的增長相當高,這很高興看到。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231211/0-42f7a467aa9d352bc30d3bc920af1740-0-4ee74ed94f0dcf9e9435ada38695507c.png/big)
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for FLEX? You can find out in our latest intrinsic value infographic research report.
收益增長是股票估值的重要因素。投資者應努力確定預期的收益增長或下降,無論情況如何,是否已被考慮在內。然後,這可以幫助他們確定股票是面向光明還是黯淡的未來。市場是否對FLEX的未來前景進行了定價?您可以在我們最新的內在價值信息圖研究報告中找到答案。
Is Flex Using Its Retained Earnings Effectively?
偉創力是否有效地使用了其留存收益?
Flex doesn't pay any dividend 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.
偉創力不向股東支付任何股息,這意味着該公司一直在將其所有利潤再投資於該業務。這可能是推動上述高收益增長數字的原因。
Conclusion
結論
On the whole, we feel that Flex's performance has been quite good. 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. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
總的來說,我們認爲Flex的表現相當不錯。具體而言,我們喜歡該公司以高回報率將其利潤的很大一部分再投資。當然,這使該公司的收益大幅增長。話雖如此,最新的行業分析師預測顯示,該公司的收益增長預計將放緩。要了解有關公司未來收益增長預測的更多信息,請查看這份關於分析師對公司的預測的免費報告,以了解更多信息。
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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。