Could The Market Be Wrong About LegalZoom.com, Inc. (NASDAQ:LZ) Given Its Attractive Financial Prospects?
Could The Market Be Wrong About LegalZoom.com, Inc. (NASDAQ:LZ) Given Its Attractive Financial Prospects?
It is hard to get excited after looking at LegalZoom.com's (NASDAQ:LZ) recent performance, when its stock has declined 45% over the past three months. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Particularly, we will be paying attention to LegalZoom.com's ROE today.
看完LegalZoom.com(NASDAQ:LZ)最近的表現後很難感到興奮,因爲它的股價在過去三個月中下跌了45%。然而,股票價格通常受到公司長期的財務表現的推動,在這種情況下看來相當有前途。特別是今天我們將會關注LegalZoom.com的淨資產收益率ROE。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或roe是一項關鍵指標,用於評估公司管理層使用公司資本的效率。換句話說,它揭示了公司將股東的投資轉化爲利潤的成功。
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 LegalZoom.com is:
因此,基於上述公式,LegalZoom.com的ROE 爲:
13% = US$21m ÷ US$168m (Based on the trailing twelve months to March 2024).
13%=2100萬美元÷16800萬美元(截至2024年3月的過去12個月計算)。
The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.13 in profit.
“回報率”是過去十二個月的利潤。這意味着,針對每1美元的股東權益,該公司產生了0.13美元的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
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. 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.
到目前爲止,我們已經了解到roe是衡量公司利潤產生效率的指標。根據公司選擇再投資或“保留”其利潤的比例,我們隨後可以評估公司未來利潤的能力。其他條件都相同的情況下,roe和利潤保留率都較高的公司通常比沒有這些特徵的公司有更高的增長速度。
A Side By Side comparison of LegalZoom.com's Earnings Growth And 13% ROE
LegalZoom.com的盈利增長和13%的roe的對比。
To start with, LegalZoom.com's ROE looks acceptable. And on comparing with the industry, we found that the the average industry ROE is similar at 14%. Consequently, this likely laid the ground for the decent growth of 13% seen over the past five years by LegalZoom.com.
首先,LegalZoom.com的roe看起來可以接受。與行業平均roe相比,我們發現行業的平均roe在14%左右。因此,這很可能爲LegalZoom.com過去五年中看到的13%的良好增長奠定了基礎。
As a next step, we compared LegalZoom.com's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%.
作爲下一步,我們將LegalZoom.com的淨利潤增長與行業進行了比較,令人高興的是,我們發現該公司的增長率高於行業平均增長率11%。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240719/0-da1b229ca06ff475fa7f49156ede9f15-0-c480d964999c3416b70964fcfcee2986.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. 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 LegalZoom.com is trading on a high P/E or a low P/E, relative to its industry.
賦予一家公司價值的基礎,很大程度上與其盈利增長有關。投資者需要確定的下一個問題是,期望的盈利增長,或者它的缺乏,是否已經體現在股價中。從而幫助他們確定股票是處於光明的未來還是黯淡的未來。一個好的預期盈利增長的指標是市盈率,它根據其盈利前景確定市場願意支付的股票價格。因此,您可能需要檢查LegalZoom.com的市盈率是高於行業平均水平還是低於行業平均水平。
Is LegalZoom.com Using Its Retained Earnings Effectively?
LegalZoom.com是否有效利用其保留收益?
LegalZoom.com doesn't pay any regular dividends, meaning that all of its profits are being reinvested in the business, which explains the fair bit of earnings growth the company has seen.
LegalZoom.com不支付任何定期股息,這意味着其所有利潤都被再投資於業務中,這解釋了公司所看到的相當多的盈利增長。
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。
Overall, we are quite pleased with LegalZoom.com's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總的來說,我們對LegalZoom.com的表現感到相當滿意。尤其是,我們喜歡該公司以高回報率大量再投資於業務。毫不意外,這導致了令人矚目的盈利增長。話雖如此,根據當前的分析師預測,我們發現該公司的盈利有望獲得動力。要了解有關該公司最新分析師預測的更多信息,請查看該公司的分析師預測可視化。
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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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。