With A Return On Equity Of 11%, Has New Jersey Resources Corporation's (NYSE:NJR) Management Done Well?
With A Return On Equity Of 11%, Has New Jersey Resources Corporation's (NYSE:NJR) Management Done Well?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of New Jersey Resources Corporation (NYSE:NJR).
儘管某些投資者已經精通金融指標(致以敬意),但本文是爲那些想學習回報率(ROE)及其重要性的人而寫的。通過學以致用,我們將研究ROE,以更好地了解新澤西能源公司(NYSE:NJR)。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE(淨資產收益率)是股東需考慮的一個重要因素,因爲它告訴他們資本被有效地再投資的效果如何。換句話說,它揭示了公司將股東的投資轉化爲利潤的成功程度。
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 New Jersey Resources is:
因此,基於上述公式,新澤西能源的ROE爲:
11% = US$236m ÷ US$2.1b (Based on the trailing twelve months to June 2024).
11% = 2.36億美元 ÷ 21億美元(截至2024年6月的過去十二個月)。
The 'return' is the yearly profit. That means that for every $1 worth of shareholders' equity, the company generated $0.11 in profit.
「回報」是每年的利潤。這意味着公司每1美元的股東權益產生了0.11美元的利潤。
Does New Jersey Resources Have A Good ROE?
新澤西能源的ROE表現如何?
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see New Jersey Resources has a similar ROE to the average in the Gas Utilities industry classification (10%).
確定公司的股東權益回報率是否良好的一種簡單方法是將其與同一行業的平均水平進行比較。但需要注意的是,這遠非是一個完美的衡量標準,因爲同一行業內的公司差異很大。從下面的圖片可以看出,新澤西能源的ROE與燃料幣公用股行業分類平均水平(10%)相當。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240810/0-2cfe46506e6ec8b9f6ea4bbf7896ec32-0-baf7f289e60f274b67f71079cca54eb7.png/big)
So while the ROE is not exceptional, at least its acceptable. While at least the ROE is not lower than the industry, its still worth checking what role the company's debt plays as high debt levels relative to equity may also make the ROE appear high. If true, then it is more an indication of risk than the potential. Our risks dashboardshould have the 3 risks we have identified for New Jersey Resources.
雖然ROE並不是非常優秀,至少是可以接受的。雖然ROE至少不低於行業平均水平,但仍值得注意公司的債務在其中扮演的角色,因爲相對股權高的債務水平可能也會使ROE顯得高。如果是這樣,那麼這更多地是風險的指示而非潛力的指示。我們的風險控制儀表板應該列出了我們爲新澤西能源確定的三個風險。
How Does Debt Impact ROE?
債務對ROE的影響是怎樣的?
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
實際上,幾乎所有公司都需要資金來投資業務,以實現利潤增長。這些資金可以來自發行股票、留存盈餘或債務。在前兩種情況下,ROE將捕捉到資本用於增長的這種使用方法。在後一種情況下,使用債務將提高投資回報,但不會改變股權。因此,使用債務可以改善ROE,儘管在像暴風雨般的天氣出現時會帶來額外的風險,比喻性地說。
Combining New Jersey Resources' Debt And Its 11% Return On Equity
結合新澤西能源的債務和11%的ROE
New Jersey Resources clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.50. The combination of a rather low ROE and significant use of debt is not particularly appealing. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
新澤西能源顯然使用了大量債務來提高投資回報,因爲其資產負債比爲1.5。相當低的ROE和大量的債務使用並不特別吸引人。投資者應該仔細考慮如果公司無法輕鬆借款會表現如何,因爲信貸市場確實會隨着時間而變化。
Conclusion
結論
Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
股本回報率在比較不同企業質量時很有用。一家可以在沒有債務的情況下實現高股本回報率的公司可以被認爲是一家高質量的公司。其他條件相同,股本回報率越高,越好。
But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
但ROE只是更大圖景中的一部分,因爲高質量企業常常以高倍數的市盈率交易。相對於當前價格所反映的盈利增長預期,盈利增長速度必須被考慮在內。所以你可能想看看這個數據豐富的互動圖表,了解該公司的預測情況。
But note: New Jersey Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但需要注意的是:新澤西能源可能不是最值得購買的股票。因此,請查看此免費高股息低債務的有趣公司列表。
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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。