Is Old Dominion Freight Line, Inc.'s (NASDAQ:ODFL) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
Is Old Dominion Freight Line, Inc.'s (NASDAQ:ODFL) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?
Old Dominion Freight Line (NASDAQ:ODFL) has had a great run on the share market with its stock up by a significant 11% over the last month. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. In this article, we decided to focus on Old Dominion Freight Line's ROE.
Old Dominion Freight Line (納斯達克:ODFL)股價在過去一個月中表現出色,上漲了11%。考慮到公司的出色表現,我們決定更仔細地研究其財務指標,因爲公司的長期財務健康狀況通常決定市場結果。在本文中,我們決定關注Old Dominion Freight Line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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
roe或權益回報率是評估公司有效利用股東投資產生回報效率的有用工具。簡而言之,roe顯示每個股東投資所產生的利潤。
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 Old Dominion Freight Line is:
因此,根據以上公式,Old Dominion Freight Line的ROE爲:
28% = US$1.2b ÷ US$4.4b (Based on the trailing twelve months to March 2024).
28% = 12億美元 ÷ 44億美元(基於過去十二個月到2024年3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 $0.28 in profit.
“回報”是過去十二個月稅後賺得的金額。這意味着,每1美元的股東權益,公司創造了0.28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?
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。
A Side By Side comparison of Old Dominion Freight Line's Earnings Growth And 28% ROE
Old Dominion Freight Line盈利增長和28%ROE的並列對比
First thing first, we like that Old Dominion Freight Line has an impressive ROE. Secondly, even when compared to the industry average of 11% the company's ROE is quite impressive. This probably laid the groundwork for Old Dominion Freight Line's moderate 19% net income growth seen over the past five years.
首先,我們喜歡Old Dominion Freight Line有令人印象深刻的ROE。其次,即使與行業平均水平11%相比,公司的ROE也相當令人印象深刻。這可能爲Old Dominion Freight Line過去五年中見到的適度淨利潤增長(19%)奠定了基礎。
We then performed a comparison between Old Dominion Freight Line's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 16% in the same 5-year period.
然後,我們將Old Dominion Freight Line的淨利潤增長與行業進行了比較,發現該公司的增長與同樣的5年期間平均增長16%相似。
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Earnings growth is a huge factor in stock valuation. 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. Is Old Dominion Freight Line fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增長是股票估值的一個重要因素。投資者需要判斷的下一步是,預期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定股票的未來前景是有前途還是不樂觀。與其他公司相比,Old Dominion Freight Line是否合理定價?這3個估值指標可能會幫助您做出決定。
Is Old Dominion Freight Line Using Its Retained Earnings Effectively?
Old Dominion Freight Line是否有效地利用了保留利潤?
Old Dominion Freight Line's three-year median payout ratio to shareholders is 9.8% (implying that it retains 90% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business.
Old Dominion Freight Line三年的股東中位數支付比率爲9.8%(意味着其保留了90%的收入),這是較低的一面,因此看起來管理層正在大力重新投資利潤以增加業務規模。
Besides, Old Dominion Freight Line has been paying dividends over a period of seven years. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 18% over the next three years. Regardless, the ROE is not expected to change much for the company despite the higher expected payout ratio.
此外,Old Dominion Freight Line已經連續七年支付分紅派息。這顯示公司致力於與股東分享利潤。我們最新的分析師數據顯示,預計公司未來三年的派息比率將上升至18%。儘管預期的派息比率更高,ROE並不會對公司產生太大的影響。
Conclusion
結論
In total, we are pretty happy with Old Dominion Freight Line'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, 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.
總體而言,我們對Old Dominion Freight Line的表現感到非常滿意。特別是,我們喜歡公司高額的複合年增長率,而且表現出色。毫不意外的是,這導致了令人印象深刻的盈利增長。然而,據目前分析師預測,公司的盈利增長預計會放緩。要了解更多關於公司未來盈利增長預測的信息,請查看此免費報告。
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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。