Otter Tail Corporation's (NASDAQ:OTTR) Stock Is Going Strong: Is the Market Following Fundamentals?
Otter Tail Corporation's (NASDAQ:OTTR) Stock Is Going Strong: Is the Market Following Fundamentals?
Otter Tail's (NASDAQ:OTTR) stock is up by a considerable 15% over the past three months. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. In this article, we decided to focus on Otter Tail's ROE.
過去三個月中,奧特泰爾(納斯達克:OTTR)的股價上漲了可觀的15%。由於市場通常會考慮公司的長期基本面,因此我們決定研究公司的關鍵績效指標,以確定它們是否可能影響市場。在本文中,我們決定聚焦於奧特泰爾的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 Is ROE Calculated?
淨資產收益率怎麼計算?
The formula for return on equity is:
權益回報率的計算公式是:
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 Otter Tail is:
因此,根據上述公式,奧特泰爾的roe爲:
20% = US$306m ÷ US$1.5b (Based on the trailing twelve months to March 2024).
20%=US$3,0600萬÷US$15億(基於截至2024年3月的過去十二個月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.20 in profit.
“回報”是年利潤。將每$1的股東資本與盈利$0.20連接起來,是一種概念方法,說明公司的ROE值比15%的行業平均ROE值要好得多。
What Has ROE Got To Do With Earnings Growth?
roe與盈利增長有何關係?
So far, we've learned that ROE is a measure of a company's profitability. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經了解到roe是公司盈利能力的一種衡量標準。根據公司選擇重新投資或“留存”的利潤比例,我們能夠評估公司未來產生利潤的能力。其他條件不變的情況下,roe和盈利留存越高,相較於不具備這些特徵的公司,企業的增長率越高。
A Side By Side comparison of Otter Tail's Earnings Growth And 20% ROE
奧特泰爾的盈利增長和20%的roe的對比
At first glance, Otter Tail seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 8.7%. This certainly adds some context to Otter Tail's exceptional 31% net income growth seen over the past five years. However, there could also be other causes behind this growth. Such as - high earnings retention or an efficient management in place.
乍一看,奧特泰爾的roe似乎還不錯。此外,公司的roe比8.7%的行業平均水平要高出很多。這無疑爲奧特泰爾在過去五年中驚人的31%淨利潤增長增添了一些背景。然而,這種增長背後也可能有其他原因,例如高額的盈餘留存或有效的管理。
As a next step, we compared Otter Tail'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 6.4%.
作爲下一步,我們將奧特泰爾的淨利潤增長與行業進行了比較,令人高興的是,我們發現公司的增長要高於行業平均增長率6.4%。
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Earnings growth is an important metric to consider when valuing a stock. 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. If you're wondering about Otter Tail's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是估值一隻股票時需要考慮的重要指標。接下來,投資者需要判斷的是,預期的盈利增長,或者沒有預期的盈利增長是否已經反映在股價中,這將有助於他們判斷股票的未來前景是遠大還是暗淡。如果您想了解奧特泰爾的估值,可以查看其市盈率相對於同行業的情況。
Is Otter Tail Efficiently Re-investing Its Profits?
奧特泰爾是否有效地重新投資其利潤?
Otter Tail's three-year median payout ratio is a pretty moderate 26%, meaning the company retains 74% of its income. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Otter Tail is reinvesting its earnings efficiently.
奧特泰爾的三年中位數派息比率相當溫和,爲26%,這意味着公司保留了74%的收入。這表明其股息得到了很好的覆蓋,並且考慮到上述高增長,似乎奧特泰爾正在有效地重新投資其收益。
Additionally, Otter Tail has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to rise to 54% over the next three years.
此外,奧特泰爾在至少十年的時間內進行了股息支付,這意味着該公司非常重視與股東分享其利潤。我們最新的分析師數據表明,該公司未來的派息率有望在未來三年內上升至54%。
Conclusion
結論
In total, we are pretty happy with Otter Tail'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, on studying current analyst estimates, we were concerned to see that while the company has grown its earnings in the past, analysts expect its earnings to shrink 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,我們對奧特泰爾的表現相當滿意。尤其是,我們喜歡公司正在以高回報率大量重新投資業務。毫不奇怪,這導致了驚人的盈利增長。話雖如此,在研究了當前分析師的預測之後,我們擔心看到,雖然公司過去增加了其收益,但分析師們預計其收益在未來會收縮。要了解有關該公司的最新分析師預測的更多信息,請查看分析師對公司的預測的可視化。
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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。