Cisco Systems, Inc.'s (NASDAQ:CSCO) Has Had A Decent Run On The Stock Market: Are Fundamentals In The Driver's Seat?
Cisco Systems, Inc.'s (NASDAQ:CSCO) Has Had A Decent Run On The Stock Market: Are Fundamentals In The Driver's Seat?
Cisco Systems' (NASDAQ:CSCO) stock up by 4.5% over the past month. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Specifically, we decided to study Cisco Systems' ROE in this article.
思科系統（NASDAQ:CSCO）股票過去一個月上漲了4.5%。正如大多數人所知，長期的基本面與市場價格變動密切相關，因此我們決定今天查看公司的關鍵財務指標，以判斷它們是否在最近的價格變動中發揮任何作用。具體而言，在本文中，我們決定研究思科系統的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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回報率（roe）是一項用於評估公司管理層如何利用公司資本的有效性的關鍵指標。簡而言之，它用於評估企業的股本相對於盈利的盈利能力。
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 Cisco Systems is:
因此，根據上述公式，思科系統的ROE爲：
26% = US$12b ÷ US$46b (Based on the trailing twelve months to April 2024).
26%= 120億美元 ÷ 460億美元(截至2024年4月後12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 $0.26 in profit.
“回報”是過去十二個月的利潤。換句話說，對於價值1美元的股本，公司能夠賺取0.26美元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
既然我們已經確定ROE是一種有效的利潤生成標準，用於評估公司未來的盈利能力，我們現在需要評估公司“保留”爲未來增長而重新投資的利潤多少，這使我們對公司的增長潛力有了一個了解。一般而言，在其他條件相等的情況下，ROE和利潤留存高的公司，增長率比沒有這些屬性的公司要高。
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 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.
我們已經建立了roe作爲公司未來收益的有效利潤生成測量工具。我們現在需要評估公司再投資或“保留”未來增長多少盈利，這會讓我們對公司的增長潛力有一個想法。其他一切都相等的情況下，roe和利潤保留都較高的公司通常是在與這些功能不同的公司相比具有更高增長率的公司。
A Side By Side comparison of Cisco Systems' Earnings Growth And 26% ROE
思科系統盈利增長和26% ROE的並置比較
First thing first, we like that Cisco Systems has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 7.1% which is quite remarkable. Despite this, Cisco Systems' five year net income growth was quite low averaging at only 2.5%. That's a bit unexpected from a company which has such a high rate of return. Such a scenario is likely to take place when a company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures.
首先，我們認爲思科系統的roe值令人印象深刻。此外，該公司的roe比7.1%的行業平均水平要高得多，這相當顯着。儘管如此，思科系統的五年淨利潤增長率相當低，僅平均爲2.5%。這在一個擁有如此高利潤率的公司是有些出乎意料的。這種情況很可能發生在一個公司將其大部分收益作爲股息支付，或者面臨競爭壓力的情況下。
We then compared Cisco Systems' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 10% in the same 5-year period, which is a bit concerning.
然後，我們將思科系統的淨利潤增長率與行業相比較，並發現該公司的增長數字低於同一5年期間平均行業增長率的10％，這有點令人擔憂。
NasdaqGS:CSCO Past Earnings Growth July 19th 2024
納斯達克：CSCO過去的盈利增長情況2024年7月19日
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). This then helps them determine if the stock is placed for a bright or bleak future. Is CSCO fairly valued? This infographic on the company's intrinsic value has everything you need to know.
盈利增長是考慮股票估值時重要的指標。投資者需要知道市場是否已經將公司預期的盈利增長（或下降）定價。這有助於他們判斷股票是面臨光明還是黯淡的未來。CSCO的估值是否公允？這份關於公司內在價值的信息圖有你需要知道的一切。
Is Cisco Systems Efficiently Re-investing Its Profits?
思科系統是否有效地重新投資其利潤？
With a high three-year median payout ratio of 53% (or a retention ratio of 47%), most of Cisco Systems' profits are being paid to shareholders. This definitely contributes to the low earnings growth seen by the company.
在過去的三年中，思科系統的中位數派息比率高達53％（留存比率爲47％），公司的大部分利潤都向股東支付。這無疑對公司的利潤增長有所影響。
Moreover, Cisco Systems has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 44%. As a result, Cisco Systems' ROE is not expected to change by much either, which we inferred from the analyst estimate of 30% for future ROE.
此外，思科系統至少連續十年支付股息，這表明管理層必須認爲股東更喜歡股息而不是利潤增長。根據最新的分析師估計，我們發現公司未來三年的派息比率預計將保持穩定在44％左右。因此，思科系統的roe也不會有太大變化，這一點我們從分析師對未來roe的30％的估計中推斷出來。
Conclusion
最後，總的來說，我們對阿拉莫集團的表現非常滿意。特別是，公司在大量投資業務和高回報率方面表現出色，這導致其盈利規模的顯着增長。但是，最新分析師預測的研究表明，預計該公司未來的盈利增長將放緩。
On the whole, we do feel that Cisco Systems has some positive attributes. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return. Investors could have benefitted from the high ROE, had the company been reinvesting more of its earnings. As discussed earlier, the company is retaining a small portion of its profits. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. 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，我們確實認爲思科系統擁有一些積極的屬性。然而，低利潤增長有點令人擔憂，特別是考慮到該公司具有高利潤率。如果該公司重新投資更多的收益，投資者可能會從高roe中受益。正如前面所討論的，該公司僅保留了其利潤的一小部分。與此同時，我們發現，儘管該公司在過去的盈利方面表現良好，但分析師預測其未來盈利將會下降。要了解有關該公司未來盈利增長預測的更多信息，請查看本公司的分析師預測免費報告。