Brookfield Reinsurance Ltd.'s (NYSE:BNRE) Stock Is Going Strong: Is the Market Following Fundamentals?
Brookfield Reinsurance Ltd.'s (NYSE:BNRE) Stock Is Going Strong: Is the Market Following Fundamentals?
Brookfield Reinsurance (NYSE:BNRE) has had a great run on the share market with its stock up by a significant 16% over the last 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 Brookfield Reinsurance's ROE.
Brookfield Reinsurance (紐交所:BNRE)股價在過去三個月中表現優異,上漲16%。鑑於市場長期看重強勁的財務狀況,我們想知道這是否在此情況下成立。在本文中,我們決定關注Brookfield Reinsurance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. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE或股東權益報酬率是一種有用的工具,用於評估一家公司能否有效地利用來自股東的投資產生回報。換句話說,它揭示了公司將股東的投資變成利潤的成功程度。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算:
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 Brookfield Reinsurance is:
因此,根據上述公式,Brookfield Reinsurance的roe爲:
13% = US$1.2b ÷ US$9.2b (Based on the trailing twelve months to March 2024).
13%=12億美元÷92億美元(基於截至2024年3月的過去12個月)。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.13 in profit.
“回報”是稅後過去十二個月賺取的金額。一個概念化這一點的方法是,對於公司擁有的每1美元股東資本,公司賺取了0.13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. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
我們已經確定roe對於公司未來收益的有效衡量工具。根據公司再投資或“留存”這些利潤的程度及其有效性,我們隨後可以評估公司的收益增長潛力。一般而言,其他條件相同的情況下,roe和利潤留存率較高的公司比不具備這些屬性的公司具有更高的增長率。
A Side By Side comparison of Brookfield Reinsurance's Earnings Growth And 13% ROE
Brookfield Reinsurance業績增長和13%的roe並排比較
To start with, Brookfield Reinsurance's ROE looks acceptable. And on comparing with the industry, we found that the the average industry ROE is similar at 13%. This certainly adds some context to Brookfield Reinsurance's exceptional 85% net income growth seen over the past five years. However, there could also be other drivers behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
首先,Brookfield Reinsurance的roe看起來是可以接受的。與該行業板塊相比,我們發現行業平均roe也爲13%。這無疑爲過去五年Brookfield Reinsurance卓越的85%淨利潤增長情況增添了一些背景。但是,這種增長也可能存在其他因素。例如,公司管理層可能做出了一些明智的戰略決策,或者該公司支付比率較低。
As a next step, we compared Brookfield Reinsurance'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 8.4%.
接下來,我們比較了Brookfield Reinsurance的淨利潤增長和業內平均水平,令人高興的是,我們發現該公司的增長高於行業平均增長8.4%。
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Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. 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 Brookfield Reinsurance 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一個巨大因素。投資者了解市場是否已經定價公司預期的盈利增長(或下降)是很重要的。這樣做將有助於他們判斷股票的未來是光明還是黯淡。其中一個衡量預期盈利增長的好指標是市盈率,它根據其盈利前景決定市場願意爲一隻股票支付的價格。因此,您可能需要檢查Brookfield Reinsurance的市盈率是高於還是低於其所在行業的。
Is Brookfield Reinsurance Using Its Retained Earnings Effectively?
Brookfield Reinsurance是否有效地利用其留存收益?
Brookfield Reinsurance has a really low three-year median payout ratio of 5.7%, meaning that it has the remaining 94% left over to reinvest into its business. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number.
Brookfield Reinsurance的三年中位支付比率非常低,僅爲5.7%,這意味着剩餘94%可用於公司的再投資。因此,管理層似乎在大量將利潤再投入到業務中以促進增長,這體現在其盈利增長數字中。
Moreover, Brookfield Reinsurance is determined to keep sharing its profits with shareholders which we infer from its long history of three years of paying a dividend.
此外,Brookfield Reinsurance有三年的分紅歷史,決定繼續向股東分享利潤。
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。
In total, we are pretty happy with Brookfield Reinsurance'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. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Let's not forget, business risk is also one of the factors that affects the price of the stock. So this is also an important area that investors need to pay attention to before making a decision on any business. To know the 1 risk we have identified for Brookfield Reinsurance visit our risks dashboard for free.
總的來說,我們對Brookfield Reinsurance的業績感到非常滿意。特別是,我們很喜歡該公司大量將利潤再投入業務並以高回報率取得的業績。不足爲奇,這導致了令人印象深刻的盈利增長。如果該公司繼續保持如此增長,那可能會對其股價產生積極影響,考慮到每股收益如何影響長期股價。不要忘記,業務風險也是影響股價的因素之一。在做出關於公司的任何決定之前,投資者需要注意這一點。要了解我們爲Brookfield Reinsurance確定的1項風險,請訪問我們的風險控制面板免費獲取。
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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。