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Are Ryerson Holding Corporation's (NYSE:RYI) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?

Are Ryerson Holding Corporation's (NYSE:RYI) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?

鑑於瑞爾森控股公司(紐約證券交易所代碼:RYI)最近的疲軟,其基本面是否足以值得買入?
Simply Wall St ·  05/07 12:11

Ryerson Holding (NYSE:RYI) has had a rough month with its share price down 33%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study Ryerson Holding's ROE in this article.

瑞爾森控股(紐約證券交易所代碼:RYI)經歷了艱難的一個月,其股價下跌了33%。但是,該公司的基本面看起來相當不錯,長期財務狀況通常與未來的市場價格走勢一致。具體而言,我們決定在本文中研究瑞爾森控股的投資回報率。

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

ROE或股本回報率是評估公司如何有效地從股東那裏獲得的投資中獲得回報的有用工具。簡而言之,它用於評估公司相對於其股權資本的盈利能力。

How Is ROE Calculated?

ROE 是如何計算的?

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 Ryerson Holding is:

因此,根據上述公式,瑞爾森控股的投資回報率爲:

10% = US$92m ÷ US$897m (Based on the trailing twelve months to March 2024).

10% = 9200萬美元 ÷ 8.97億美元(基於截至2024年3月的過去十二個月)。

The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.10 in profit.

“回報” 是過去十二個月的利潤。這意味着,每獲得價值1美元的股東權益,公司就會產生0.10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?

So far, we've learned that ROE is a measure of a company's profitability. 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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.

到目前爲止,我們已經了解到,投資回報率是衡量公司盈利能力的指標。然後,我們能夠評估公司的收益增長潛力,具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。

A Side By Side comparison of Ryerson Holding's Earnings Growth And 10% ROE

瑞爾森控股的收益增長和10%的投資回報率的並排比較

When you first look at it, Ryerson Holding's ROE doesn't look that attractive. However, given that the company's ROE is similar to the average industry ROE of 9.7%, we may spare it some thought. Looking at Ryerson Holding's exceptional 25% five-year net income growth in particular, we are definitely impressed. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. Such as - high earnings retention or an efficient management in place.

當你第一次看時,瑞爾森控股的投資回報率看起來並不那麼吸引人。但是,鑑於該公司的投資回報率與9.7%的行業平均投資回報率相似,我們可以不加思索。特別是瑞爾森控股驚人的 25% 的五年淨收入增長,我們肯定印象深刻。考慮到投資回報率不是特別高,我們認爲還可能有其他因素在起作用,這些因素可能會影響公司的增長。例如——高收益留存率或實行高效管理。

As a next step, we compared Ryerson Holding's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 25% in the same period.

下一步,我們將瑞爾森控股的淨收入增長與該行業進行了比較,發現與同期25%的行業平均增長率相比,該公司的增長數字相似。

past-earnings-growth
NYSE:RYI Past Earnings Growth May 7th 2024
紐約證券交易所:RYI 過去的收益增長 2024 年 5 月 7 日

Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. 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 Ryerson Holding is trading on a high P/E or a low P/E, relative to its industry.

收益增長是股票估值的重要因素。對於投資者來說,重要的是要知道市場是否對公司的預期收益增長(或下降)進行了定價。然後,這可以幫助他們確定股票是爲光明還是暗淡的未來而佈局。衡量預期收益增長的一個很好的指標是市盈率,它根據收益前景決定了市場願意爲股票支付的價格。因此,您可能需要檢查瑞爾森控股相對於其行業是高市盈率還是低市盈率。

Is Ryerson Holding Making Efficient Use Of Its Profits?

瑞爾森控股是否在有效利用其利潤?

Ryerson Holding's ' three-year median payout ratio is on the lower side at 5.1% implying that it is retaining a higher percentage (95%) of its profits. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.

瑞爾森控股的三年派息率中位數處於較低水平,爲5.1%,這意味着它保留了更高的利潤百分比(95%)。這表明管理層正在將大部分利潤再投資於業務增長,公司的增長就證明了這一點。

Additionally, Ryerson Holding has paid dividends over a period of three years which means that the company is pretty serious about sharing its profits with shareholders.

此外,瑞爾森控股已在三年內派發了股息,這意味着該公司非常認真地與股東分享利潤。

Conclusion

結論

Overall, we feel that Ryerson Holding certainly does have some positive factors to consider. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 4 risks we have identified for Ryerson Holding visit our risks dashboard for free.

總體而言,我們認爲瑞爾森控股確實有一些積極因素需要考慮。儘管回報率很低,但該公司將其利潤的很大一部分再投資於業務這一事實無疑促進了其高收益增長。雖然我們不會完全解散公司,但我們要做的是努力確定業務的風險,以便在公司周圍做出更明智的決定。要了解我們爲瑞爾森控股確定的四種風險,請免費訪問我們的風險儀表板。

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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。

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