Are Robust Financials Driving The Recent Rally In Watsco, Inc.'s (NYSE:WSO) Stock?
Are Robust Financials Driving The Recent Rally In Watsco, Inc.'s (NYSE:WSO) Stock?
Watsco's (NYSE:WSO) stock is up by a considerable 10% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Watsco's ROE.
過去三個月裏,華斯科股票上漲了10%。鑑於市場長期看重強勁業績,我們想知道這是否也適用於此次情況。在本文中,我們決定聚焦於華斯科的roe。
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. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
roe指股東權益回報率,是一種有用的工具,用於評估公司如何有效地從股東獲得的投資中產生回報。簡單來說,這衡量了一家公司相對於股東權益的盈利能力。
How Do You Calculate Return On Equity?
怎樣計算ROE?
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 Watsco is:
因此,根據上述公式,華斯科的roe爲:
21% = US$608m ÷ US$2.9b (Based on the trailing twelve months to March 2024).
21% = 6.08億美元 ÷ 29億美元(截至2024年3月的過去12個月)。
The 'return' is the amount earned after tax over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.21 in profit.
所謂“回報”是指過去十二個月稅後收益,這意味着對於每1美元股東權益,公司產生了0.21美元的利潤。
Why Is ROE Important For Earnings Growth?
ROE對於盈利增長的重要性是什麼?
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。
Watsco's Earnings Growth And 21% ROE
華斯科的盈利增長和21%的roe
To start with, Watsco's ROE looks acceptable. Especially when compared to the industry average of 17% the company's ROE looks pretty impressive. This probably laid the ground for Watsco's significant 22% net income growth seen over the past five years. However, there could also be other causes behind this growth. For instance, the company has a low payout ratio or is being managed efficiently.
首先,華斯科的roe看起來是可以接受的。尤其是與17%的行業平均水平相比,公司的roe顯得相當令人印象深刻。這或許爲華斯科過去五年顯著的22%淨利潤增長打下了基礎。然而,也可能有其他原因導致了這種增長。例如,公司的股息支付比率較低或管理高效。
We then performed a comparison between Watsco's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 25% in the same 5-year period.
然後,我們對華斯科的淨利潤增長進行了與行業的比較,發現公司的增長與同期平均增長率爲25%的行業相似。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240703/0-5e999c6182d62a444a4abe8519ca5597-0-db07c87a840dc119b1a9b735edc1ce71.png/big)
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Watsco's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是估值股票時需要考慮的重要指標。接下來投資者需要判斷的是,期望的盈利增長或缺乏盈利增長是否已經反映在股價中。這樣做將有助於他們確認股票的未來前景是有希望的還是悲觀的。如果您想了解華斯科的估值,請查看其市盈率的儀表盤與其行業的相比較。
Is Watsco Using Its Retained Earnings Effectively?
華斯科是否有效地利用了保留盈利?
The high three-year median payout ratio of 63% (implying that it keeps only 37% of profits) for Watsco suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders.
華斯科的三年中位數股息支付比率高達63%(表明它只保留了37%的利潤),這表明儘管它將大部分收益返還給股東,但其增長並未受到太大影響。
Moreover, Watsco 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. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 72% of its profits over the next three years. Accordingly, forecasts suggest that Watsco's future ROE will be 21% which is again, similar to the current ROE.
此外,華斯科決定繼續與股東分享其利潤,我們從其至少十年的支付股息的歷史可以推斷出這一點。在研究最新的分析師共識數據時,我們發現公司有望在未來三年保持將近72%的利潤分配給股東。因此,預測表明華斯科未來的roe將達到21%,這與當前的roe相似。
Conclusion
結論
Overall, we are quite pleased with Watsco's performance. Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. 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,我們對華斯科的表現感到滿意。尤其是高roe,這爲其盈利表現的令人印象深刻的增長作出了貢獻。儘管公司只重新投資了一小部分利潤,但它仍然成功地將其收益增長。當然,根據分析師的預測,公司的盈利增長有望放緩。如果您想了解更多關於該公司未來盈利增長的預測,請查看此免費的分析師預測報告。
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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。