Do Its Financials Have Any Role To Play In Driving LGI Homes, Inc.'s (NASDAQ:LGIH) Stock Up Recently?
Do Its Financials Have Any Role To Play In Driving LGI Homes, Inc.'s (NASDAQ:LGIH) Stock Up Recently?
LGI Homes' (NASDAQ:LGIH) stock is up by a considerable 16% over the past week. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Specifically, we decided to study LGI Homes' ROE in this article.
過去一週,LGI Homes(納斯達克:LGIH)的股價上漲了16%。通常,股票價格通常與公司的長期財務表現相一致,因此我們決定更加密切地研究其財務指標,以確定它們是否在最近的股價上漲中發揮了作用。具體而言,我們決定在本文中研究LGI Homes的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE,即淨資產收益率,測試一家公司有效增加價值和管理股東資金的能力。換句話說,它揭示了公司將股東投資轉化爲利潤的成功程度。
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 LGI Homes is:
因此,根據上述公式,LGI Homes的ROE爲:
10% = US$189m ÷ US$1.9b (Based on the trailing twelve months to March 2024).
10%= US$ 18900萬 ÷ US$ 19億(基於截至2024年3月的過去十二個月)。
The 'return' is the yearly profit. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.10.
'回報'是年利潤。這意味着對於股東的每1美元投資,公司能夠產生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. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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,我們已經了解到ROE衡量公司利潤的效率如何。基於公司選擇再投資或保留多少利潤,我們隨後能夠評估公司未來產生利潤的能力。總的來說,在其他條件相等的情況下,具有高ROE和利潤保留的公司的增長率比沒有這些特徵的公司要高。
LGI Homes' Earnings Growth And 10% ROE
LGI Homes的盈利增長和10%的ROE
On the face of it, LGI Homes' 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 15% either. Although, we can see that LGI Homes saw a modest net income growth of 5.9% over the past five years. So, there might be 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.
從表面上看,LGI Homes的ROE不值一提。進一步的研究表明,該公司的ROE也不比15%的行業平均水平更具優勢。儘管如此,我們可以看到LGI Homes在過去五年中的淨利潤增長率爲5.9%,這表明可能有其他方面正面影響了公司的盈利增長。例如,該公司具有較低的派息比率或正在有效管理。
We then compared LGI Homes' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 24% in the same 5-year period, which is a bit concerning.
然後我們將LGI Homes的淨利潤增長與行業進行了比較,並發現公司的增長數字低於同一5年期間24%的行業平均增長率,這有點令人擔憂。
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Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. 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 LGI Homes is trading on a high P/E or a low P/E, relative to its industry.
盈利增長是股票估值的重要因素。投資者應該試圖確定預期的盈利增長或下降(無論哪種情況),是否已經定價。通過這樣做,他們將有一個想法,股票是進入明朗狀態還是等待沼澤的狀態。一項良好的預期盈利增長指標是市盈率,它根據股票的盈利前景確定市場願意支付的價格。因此,您可能需要檢查LGI Homes相對於其行業是否正在交易高市盈率或低市盈率。
Is LGI Homes Making Efficient Use Of Its Profits?
LGI Homes是否有效地利用其利潤?
LGI Homes 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.
LGI Homes目前不支付任何常規股息,這實際上意味着它一直在將所有利潤再投資到業務中。這肯定有助於實現我們上面討論的體面的盈利增長數字。
Conclusion
結論
In total, it does look like LGI Homes has some positive aspects to its business. Namely, its respectable earnings growth, which it achieved due to it retaining most of its profits. However, given the low ROE, investors may not be benefitting from all that reinvestment after all. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. 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,看起來LGI Homes業務有一些積極方面。即,它具有可觀的盈利增長,這是由於它保留大部分利潤實現的。然而,由於低ROE,投資者可能並沒有從所有再投資中受益。即便如此,通過查看當前的分析師預期,我們發現該公司的盈利預計將獲得勢頭。這些分析師預期是基於行業的總體預期還是基於公司的基本面?單擊此處,進入我們的分析師預測頁面。
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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?對內容感到擔憂?請直接與我們聯繫。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?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。