Should Weakness in Materion Corporation's (NYSE:MTRN) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Materion Corporation's (NYSE:MTRN) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
With its stock down 23% over the past three months, it is easy to disregard Materion (NYSE:MTRN). But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Materion's ROE in this article.
在過去三個月中,Materion(紐交所:MTRN)的股價下跌了23%,所以它很容易被忽視。但是,如果你仔細觀察,你會發現它的主要財務指標看起來相當不錯,這可能意味着該股長期潛在上漲,因爲市場通常會獎勵更有彈性的長期基本面。具體而言,本文將研究Materion的ROE。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東權益回報率ROE是測試公司增值能力和管理股東投資的有效性的指標。更簡單地說,它衡量公司在股東權益中的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算:
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 Materion is:
所以,根據上述公式,Materion的ROE爲:
9.4% = US$84m ÷ US$890m (Based on the trailing twelve months to March 2024).
9.4%= 8.9億美元÷ 8.4億美元(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. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.09 in profit.
“回報”是過去十二個月的利潤。換句話說,對於每美元的股本,公司能夠獲得0.09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?
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 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.
我們已經確定了roe作爲衡量公司未來收益的有效收益率。現在我們需要評估公司再投資或“保留”的利潤,以便了解公司的增長潛力。假設其他一切不變,ROE和利潤保留率越高,公司的增長率就越高,而與不一定具備這些特徵的公司相比。
Materion's Earnings Growth And 9.4% ROE
Materion的盈利增長和9.4%的ROE
On the face of it, Materion's ROE is not much to talk about. However, its ROE is similar to the industry average of 9.8%, so we won't completely dismiss the company. Moreover, we are quite pleased to see that Materion's net income grew significantly at a rate of 30% over the last five years. 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. For instance, the company has a low payout ratio or is being managed efficiently.
表面上看,Materion的ROE不值一提。然而,其ROE與行業平均水平相似,爲9.8%,因此我們不會完全忽略該公司。此外,我們很高興地看到,Materion的淨利潤在過去五年中以30%的速度顯着增長。考慮到ROE並不特別高,我們認爲可能還有其他因素在發揮作用,可能正影響着公司的增長。例如,該公司的派息比率低或受到有效管理。
Next, on comparing with the industry net income growth, we found that Materion's growth is quite high when compared to the industry average growth of 25% in the same period, which is great to see.
接下來,我們發現與行業淨收入增長相比,Materion在同期的增長率相當高,這是個好消息。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240620/0-4ac870453cf124f5ac8a986b4d4a7e49-0-eb1dd9ee5224b3cb67c4eab2ec188053.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). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is MTRN fairly valued? This infographic on the company's intrinsic value has everything you need to know.
盈利增長是評估股票價值時要考慮的重要指標。對於投資者來說,知道市場是否已經定價了公司預期的盈利增長(或下滑)非常重要。通過這樣做,他們就會知道股票是否進入了清澈的藍色水域,還是有泥沼水坑在等待着。MTRN是否公平價值?此公司的內在價值信息圖表有您需要的一切。
Is Materion Efficiently Re-investing Its Profits?
Materion是否有效地再投資其利潤?
Materion has a really low three-year median payout ratio of 13%, meaning that it has the remaining 87% left over to reinvest into its business. This suggests that the management is reinvesting most of the profits to grow the business as evidenced by the growth seen by the company.
Materion的三年中位數派息比率非常低,爲13%,這意味着它剩餘的87%可以再投資到業務中。這表明管理層正在將大部分利潤再投資到公司,正如公司所見的增長一樣。
Moreover, Materion is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.
此外,Materion熱衷於與股東分享利潤,這可以從至少十年支付股息的歷史中推斷出來。
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
On the whole, we do feel that Materion has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. 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,我們認爲Materion具有一些積極的特點。儘管ROE比較低,但通過高比率再投資,公司已經實現了收益的顯著增長。最新的行業分析師預測表明,該公司預計將保持當前的增長率。這些分析師的預期是基於行業的廣泛預期,還是基於公司的基本面?單擊此處以訪問分析師預測頁面。
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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.
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 (at) simplywallst.com。
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。