Can Strategic Education, Inc.'s (NASDAQ:STRA) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?
Can Strategic Education, Inc.'s (NASDAQ:STRA) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?
Most readers would already be aware that Strategic Education's (NASDAQ:STRA) stock increased significantly by 26% over the past three months. We, however wanted to have a closer look at its key financial indicators as the markets usually pay for long-term fundamentals, and in this case, they don't look very promising. Particularly, we will be paying attention to Strategic Education's ROE today.
大多數讀者已經意識到,戰略教育(納斯達克股票代碼:STRA)的股票在過去三個月中大幅上漲了26%。但是,我們想仔細研究其關鍵財務指標,因爲市場通常會爲長期基本面買單,在這種情況下,它們看起來並不十分樂觀。特別是,我們今天將關注戰略教育的投資回報率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. 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用於評估公司管理層利用公司資本效率的關鍵指標。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 Strategic Education is:
因此,根據上述公式,戰略教育的投資回報率爲:
6.2% = US$102m ÷ US$1.6b (Based on the trailing twelve months to March 2024).
6.2% = 1.02億美元 ÷ 16億美元(基於截至2024年3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 $0.06 in profit.
“回報” 是每年的利潤。對此進行概念化的一種方法是,該公司每擁有1美元的股東資本,就能獲得0.06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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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 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.
我們已經確定,投資回報率是衡量公司未來收益的有效盈利指標。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 Strategic Education's Earnings Growth And 6.2% ROE
戰略教育的收益增長和6.2%的投資回報率的並排比較
On the face of it, Strategic Education's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 13% either. Hence, the flat earnings seen by Strategic Education over the past five years could probably be the result of it having a lower ROE.
從表面上看,戰略教育的投資回報率沒什麼好談的。一項快速的進一步研究表明,該公司的投資回報率與行業平均水平的13%相比也並不理想。因此,戰略教育在過去五年中收入持平可能是其投資回報率較低的結果。
As a next step, we compared Strategic Education's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 24% in the same period.
下一步,我們將Strategic Education的淨收入增長與該行業進行了比較,並失望地看到該公司的增長低於同期24%的行業平均增長。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240521/0-3373a09df44fab1046557d09b78886aa-0-ade5ff608ebd170d383e3c90629520c7.png/big)
Earnings growth is an important metric to consider when valuing a stock. 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. Is STRA fairly valued? This infographic on the company's intrinsic value has everything you need to know.
收益增長是對股票進行估值時要考慮的重要指標。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面向光明還是暗淡的未來。STRA 估值合理嗎?這張關於公司內在價值的信息圖包含了你需要知道的一切。
Is Strategic Education Using Its Retained Earnings Effectively?
戰略教育能否有效地使用其留存收益?
Strategic Education has a very high three-year median payout ratio of 115% over the last last three years, which suggests that the company is dipping into more than just its earnings to pay its dividend. The absence of growth in Strategic Education's earnings therefore, doesn't come as a surprise. Paying a dividend higher than reported profits is not a sustainable move. That's a huge risk in our books.
在過去三年中,Strategic Education的三年派息率中位數非常高,爲115%,這表明該公司投入的不僅僅是收益來支付股息。因此,戰略教育的收入缺乏增長並不令人意外。支付高於報告利潤的股息不是可持續的舉動。在我們的書中,這是一個巨大的風險。
Moreover, Strategic Education has been paying dividends for seven years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer dividends over earnings growth.
此外,Strategic Education支付股息已有七年了,這是相當長的時間,這表明管理層一定已經意識到股東更喜歡分紅而不是收益增長。
Summary
摘要
In total, we would have a hard think before deciding on any investment action concerning Strategic Education. The low ROE, combined with the fact that the company is paying out almost if not all, of its profits as dividends, has resulted in the lack or absence of growth in its earnings. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總的來說,在決定任何與戰略教育有關的投資行動之前,我們會經過深思熟慮。低的投資回報率,加上該公司將幾乎甚至全部的利潤作爲股息支付,導致其收益缺乏或沒有增長。既然如此,分析師的最新預測顯示,該公司的收益將繼續增長。這些分析師的預期是基於對該行業的廣泛預期,還是基於公司的基本面?點擊此處進入我們分析師對公司的預測頁面。
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。