Has Grand Canyon Education, Inc.'s (NASDAQ:LOPE) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Has Grand Canyon Education, Inc.'s (NASDAQ:LOPE) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Grand Canyon Education (NASDAQ:LOPE) has had a great run on the share market with its stock up by a significant 15% over the last three months. 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. In this article, we decided to focus on Grand Canyon Education's ROE.
大峽谷教育(納斯達克股票代碼:LOPE)在過去的三個月裏在股票市場上表現出色,其股票價格大幅上漲15%。由於股票價格通常與公司的長期財務表現相關,我們決定更仔細地研究其財務指標,看看它們是否在最近的股價走勢中起到了作用。在這篇文章中,我們決定重點關注大峽谷教育的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. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股本回報率或roe是評估公司管理層如何有效利用公司資本的關鍵指標。簡而言之,ROE顯示每美元股東投資所產生的利潤。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
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 Grand Canyon Education is:
因此,基於上述公式,大峽谷教育的roe爲:
28% = US$213m ÷ US$759m (Based on the trailing twelve months to March 2024).
28%=美元21300萬 ÷美元75900萬(基於截至2024年3月的最近十二個月)。
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.28 in profit.
“回報”是過去12個月內的利潤。一種概念化的方法是,對於每1美元的股東資本,公司獲得了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?
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。
Grand Canyon Education's Earnings Growth And 28% ROE
大峽谷教育的盈利增長和28%的roe
Firstly, we acknowledge that Grand Canyon Education has a significantly high ROE. Secondly, even when compared to the industry average of 14% the company's ROE is quite impressive. As you might expect, the 5.7% net income decline reported by Grand Canyon Education doesn't bode well with us. We reckon that there could be some other factors at play here that are preventing the company's growth. These include low earnings retention or poor allocation of capital.
首先,我們認識到大峽谷教育的roe相當高。其次,即使與行業平均水平的14%相比,公司的roe也非常令人印象深刻。正如你所期望的,大峽谷教育報告的5.7%淨收入下降對我們來說並不好。我們認爲可能有一些其他因素在起作用,從而阻止了公司的增長。這些因素包括低收益保留或資本配置差。
However, when we compared Grand Canyon Education's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 19% in the same period. This is quite worrisome.
然而,當我們將大峽谷教育的增長與行業進行比較時,我們發現,儘管該公司的收益在萎縮,但該行業在同一時期內的收益增長了19%。這非常令人擔憂。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240726/0-a07ca387a1c9756d48bf77249e8fc7e0-0-a07d345dfc48b0dc3f7f46fefdff2be3.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. What is LOPE worth today? The intrinsic value infographic in our free research report helps visualize whether LOPE is currently mispriced by the market.
給公司附加價值的基礎在很大程度上與其盈利增長相關。對於投資者來說,了解市場是否已經定價了公司預期的盈利增長(或下降)非常重要。這樣做將有助於他們確定股票的未來前景是否看好或不祥。今天LOPE值多少錢?我們的免費研究報告中的內在價值信息圖表可以幫助您可視化LOPE當前是否被市場錯誤定價。
Is Grand Canyon Education Using Its Retained Earnings Effectively?
大峽谷教育是否有效地利用了其保留收益?
Because Grand Canyon Education doesn't pay any regular dividends, we infer that it is retaining all of its profits, which is rather perplexing when you consider the fact that there is no earnings growth to show for it. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.
由於大峽谷教育不支付任何定期股息,我們推斷其保留了所有利潤,而這在考慮其沒有盈利增長的情況下非常令人困惑。因此,在這方面可能會有一些其他的解釋。例如,公司可能的業務可能正在惡化。
Conclusion
結論
Overall, we feel that Grand Canyon Education certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總體而言,我們認爲大峽谷教育肯定有一些值得考慮的積極因素。然而,盈利增長的低迷還是有點令人擔憂,尤其是考慮到公司具有很高的回報率,並且正在重新投資其大部分利潤。從表面上看,可能有一些其他因素,不一定受業務控制,正在阻止增長。話雖如此,我們研究了最新的分析師預測,並發現即使該公司過去收益有所縮水,分析師也希望其未來的收益將會增長。要了解有關公司的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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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。