Should You Be Impressed By Core & Main, Inc.'s (NYSE:CNM) ROE?
Should You Be Impressed By Core & Main, Inc.'s (NYSE:CNM) ROE?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Core & Main, Inc. (NYSE:CNM).
許多投資者仍在學習分析股票時可能有用的各種指標。本文適用於那些想了解股本回報率(ROE)的人。通過邊幹邊學的方式,我們將研究投資回報率,以更好地了解Core & Main, Inc.(紐約證券交易所代碼:CNM)。
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.
股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。換句話說,它揭示了公司成功地將股東投資轉化爲利潤。
How To Calculate Return On Equity?
如何計算股本回報率?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Core & Main is:
因此,根據上述公式,Core & Main的投資回報率爲:
30% = US$499m ÷ US$1.6b (Based on the trailing twelve months to April 2024).
30% = 4.99億美元 ÷ 16億美元(基於截至2024年4月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.30 in profit.
「回報」 是指公司去年的收益。對此進行概念化的一種方法是,該公司每擁有1美元的股東資本,就能獲得0.30美元的利潤。
Does Core & Main Have A Good Return On Equity?
Core & Main 的股本回報率是否良好?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Core & Main has a better ROE than the average (16%) in the Trade Distributors industry.
可以說,評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。但是,這種方法僅在粗略檢查時有用,因爲各公司在相同的行業分類中確實存在很大差異。如下圖所示,Core & Main的投資回報率高於貿易分銷商行業的平均水平(16%)。
![1724932519914](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240829/43065515-0-d6dc8d139599fbe320159c6c0fcf3a32.webp/bigjpg)
That's clearly a positive. Bear in mind, a high ROE doesn't always mean superior financial performance. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk .
這顯然是積極的。請記住,高投資回報率並不總是意味着卓越的財務業績。公司資本結構中債務比例的增加也可能導致較高的投資回報率,而高債務水平可能構成巨大的風險。
Why You Should Consider Debt When Looking At ROE
爲什麼在考慮投資回報率時應該考慮債務
Most companies need money -- from somewhere -- to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. That will make the ROE look better than if no debt was used.
大多數公司需要來自某個地方的資金來增加利潤。這些現金可以來自發行股票、留存收益或債務。對於第一和第二種選擇,投資回報率將反映現金用於增長的這種用途。在後一種情況下,債務的使用將提高回報,但不會改變股權。這將使投資回報率看起來比不使用債務時更好。
Combining Core & Main's Debt And Its 30% Return On Equity
合併Core & Main的債務及其30%的股本回報率
It's worth noting the high use of debt by Core & Main, leading to its debt to equity ratio of 1.47. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
值得注意的是,Core & Main大量使用債務,導致其負債權益比率爲1.47。毫無疑問,投資回報率令人印象深刻,但值得記住的是,如果該公司減少債務,該指標可能會更低。債務會增加風險,減少公司未來的選擇,因此您通常希望從使用債務中獲得豐厚的回報。
Conclusion
結論
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股本回報率是衡量企業創造利潤並將其返還給股東的能力的有用指標。能夠在不負債過多的情況下獲得高股本回報的公司通常質量很好。如果兩家公司的債務與股權比率大致相同,而一家公司的投資回報率更高,那麼我通常更喜歡投資回報率更高的那家公司。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
話雖如此,儘管投資回報率是衡量業務質量的有用指標,但你必須考慮一系列因素才能確定購買股票的正確價格。與股票價格所反映的預期相比,利潤增長率尤其值得考慮。因此,你可能想看看這張數據豐富的公司預測交互式圖表。
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
如果你更願意去另一家公司——一家財務狀況可能優越的公司——那麼千萬不要錯過這份免費的股本回報率高、債務低的有趣公司的名單。
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.
對這篇文章有反饋嗎?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。