Declining Stock and Decent Financials: Is The Market Wrong About Novanta Inc. (NASDAQ:NOVT)?
Declining Stock and Decent Financials: Is The Market Wrong About Novanta Inc. (NASDAQ:NOVT)?
Novanta (NASDAQ:NOVT) has had a rough three months with its share price down 4.1%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Particularly, we will be paying attention to Novanta's ROE today.
在過去的三個月裏，Novanta（納斯達克: NOVT）的股價下降了4.1％。然而，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趨勢相一致。特別是今天我們將關注Novanta的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股東權益回報率（ROE）是測試公司如何有效地增加其價值並管理投資者資金的指標。簡而言之，它用於評估公司相對於股本資本的盈利能力。
How Is ROE Calculated?
淨資產收益率怎麼計算？
The formula for ROE is:
roe的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤（從持續經營中獲得）÷ 股東權益
So, based on the above formula, the ROE for Novanta is:
因此，根據上面的公式，Novanta的roe爲:
10% = US$69m ÷ US$682m (Based on the trailing twelve months to March 2024).
10％= US$ 69m ÷ US$ 682m（基於截至2024年3月的過去十二個月）
The 'return' is the yearly profit. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.10 in profit.
“回報”是年利潤。換句話說，對於每1美元的股東權益，公司可以賺取0.10美元的利潤。
What Has ROE Got To Do With Earnings Growth?
ROE與盈利增長有什麼關係？
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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前爲止，我們已經了解了ROE衡量公司產生利潤的效率。現在，我們需要評估公司爲未來增長“留存”的利潤或“保留”多少，這就讓我們對公司的增長潛力有了一個想法。一般來說，其他條件相同的情況下，ROE和利潤保留較高的公司比沒有這些屬性的公司具有更高的增長率。
Novanta's Earnings Growth And 10% ROE
Novanta的盈利增長和10％的roe
When you first look at it, Novanta's ROE doesn't look that attractive. However, its ROE is similar to the industry average of 9.6%, so we won't completely dismiss the company. On the other hand, Novanta reported a moderate 13% net income growth over the past five years. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.
當你第一次看它時，Novanta的roe看起來並不那麼有吸引力。然而，其roe與行業平均值9.6％相似，因此我們不會完全忽略該公司。另一方面，Novanta在過去五年中報告了適度的13％淨收入增長。考慮到相對較低的roe，很可能會有一些其他方面對公司的盈利增長產生積極影響。例如，公司的股息支付比率低或被有效地管理。
Next, on comparing Novanta's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 15% over the last few years.
接下來，將Novanta的淨收入增長與行業進行比較，我們發現該公司報告的增長與過去幾年的行業平均增長率15％相似。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. If you're wondering about Novanta's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
價值評估公司的基礎在很大程度上取決於其盈利增長。投資者了解市場是否已經定價反映了公司預期的盈利增長（或下降）是很重要的。這有助於他們判斷股票的未來前景是光明還是黯淡。如果你想知道Novanta的股票估值，請查看其市盈率相對於行業的計算方法。
Is Novanta Making Efficient Use Of Its Profits?
Novanta是否有效利用其利潤？
Novanta doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the decent earnings growth number that we discussed above.
Novanta目前不支付任何常規股息，這基本上意味着公司一直在將其所有利潤重新投資到業務中。這無疑有助於上述不錯的盈利增長。
Conclusion
結論
Overall, we feel that Novanta certainly does have some positive factors to consider. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總體而言，我們認爲Novanta確實具有一些值得考慮的積極因素。雖然roe較低，但是公司以較高的再投資率實現了相當可觀的盈利增長。雖然如此，最新的分析師預測顯示，公司將繼續看到其盈利的擴張。要了解有關公司最新分析師預測的更多信息，請查看本可視化分析師預測。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論，只使用公正的方法論，我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議，也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意，我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。