Bright Horizons Family Solutions Inc.'s (NYSE:BFAM) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?
Bright Horizons Family Solutions Inc.'s (NYSE:BFAM) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?
Bright Horizons Family Solutions' (NYSE:BFAM) stock is up by a considerable 28% over the past three months. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. In this article, we decided to focus on Bright Horizons Family Solutions' ROE.
Bright Horizons Family Solutions(紐交所: BFAM)股票在過去三個月中大幅上漲了28%。然而,我們擔心公司不穩定的財務狀況是否會對當前股價勢頭產生任何不利影響。在本文中,我們決定專注於Bright Horizons Family Solutions的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE,即淨資產收益率,測試一家公司有效增加價值和管理股東資金的能力。換句話說,它揭示了公司將股東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?
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算:
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 Bright Horizons Family Solutions is:
所以,根據上述公式,Bright Horizons Family Solutions的ROE爲:
7.9% = US$102m ÷ US$1.3b (Based on the trailing twelve months to June 2024).
7.9% = 1.02億美元 ÷ 13億美元(截至2024年6月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.08 in profit.
「回報」是指過去十二個月稅後所賺的金額。換句話說,對於每一美元的股權,公司能夠賺取0.08美元的利潤。
What Has ROE Got To Do With Earnings Growth?
roe與盈利增長有何關係?
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,我們已經知道roe衡量公司生成利潤的效率。根據公司選擇再投資或「保留」的利潤的多少,我們能夠評估公司未來生成利潤的能力。一般而言,在其他條件相等的情況下,roe和盈利保留較高的公司,比沒有這些屬性的公司增長率更高。
Bright Horizons Family Solutions' Earnings Growth And 7.9% ROE
Bright Horizons Family Solutions的盈利增長和7.9%的ROE
At first glance, Bright Horizons Family Solutions' ROE doesn't look very promising. Next, when compared to the average industry ROE of 11%, the company's ROE leaves us feeling even less enthusiastic. For this reason, Bright Horizons Family Solutions' five year net income decline of 16% is not surprising given its lower ROE. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For example, it is possible that the business has allocated capital poorly or that the company has a very high payout ratio.
乍一看,Bright Horizons Family Solutions的ROE看起來並不太令人滿意。然後,與行業平均ROE 11%相比,該公司的ROE使我們對其感到更沒有熱情。因此,鑑於較低的ROE,Bright Horizons Family Solutions五年期的淨利潤下降16%並不令人意外。我們認爲還可能存在其他消極影響公司盈利前景的因素。例如,可能是公司資金配置不當,或者公司的派息比例非常高。
That being said, we compared Bright Horizons Family Solutions' performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 13% in the same 5-year period.
話雖如此,當我們發現Bright Horizons Family Solutions的業績在5年期間下降時,與同樣的5年期間行業的13%增長相比,我們感到擔憂。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. What is BFAM worth today? The intrinsic value infographic in our free research report helps visualize whether BFAM is currently mispriced by the market.
給一家公司賦予價值的基礎在很大程度上與其盈利增長有關。投資者需要判斷的是預計的盈利增長,或者缺乏盈利增長,是否已經融入了股價之中。這樣做將有助於他們判斷股票的未來是看漲還是看跌。BFAm今天的價值是多少?我們的免費研究報告中的內在價值信息圖表可以幫助您看出BFAm當前是否被市場錯誤定價。
Is Bright Horizons Family Solutions Efficiently Re-investing Its Profits?
Bright Horizons Family Solutions的利潤是否有效回報投資?
Because Bright Horizons Family Solutions 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. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
由於Bright Horizons Family Solutions不支付普通股息,我們可以推斷出它保留了所有利潤,考慮到沒有盈利增長,這是相當令人困惑的。看起來可能有其他原因可以解釋這種局面。例如,該業務可能在下滑。
Conclusion
結論
On the whole, we feel that the performance shown by Bright Horizons Family Solutions can be open to many interpretations. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings 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.
總的來說,我們認爲Bright Horizons Family Solutions的表現有許多不同的解釋。儘管公司有很高的再投資率,但低ROE意味着所有這些再投資對投資者沒有貢獻,而且對盈利增長有負面影響。話雖如此,我們研究了最新的分析師預測,發現儘管公司過去收縮了盈利,分析師們預計其未來將實現盈利增長。要了解該公司的最新分析師預測,請查看此分析師預測可視化。
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