Preformed Line Products Company's (NASDAQ:PLPC) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Preformed Line Products Company's (NASDAQ:PLPC) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Preformed Line Products (NASDAQ:PLPC) has had a great run on the share market with its stock up by a significant 13% 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. Particularly, we will be paying attention to Preformed Line Products' ROE today.
Preformed Line Products (納斯達克:PLPC) 在股市上表現出色,其股價在過去三個月大漲13%。鑑於股價通常與公司的長期業務績效相一致,我們決定更密切地研究其財務指標,以確定其是否對最近的股價變動有影響。特別關注Preformed Line Products今日的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.
淨資產收益率或roe是用來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顯示了每一美元投資在股東投資方面產生的利潤。
How Do You Calculate Return On Equity?
如何計算淨資產收益率?
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(來自持續經營) ÷ 股東權益
So, based on the above formula, the ROE for Preformed Line Products is:
因此,根據以上公式,Preformed Line Products的roe爲:
7.7% = US$33m ÷ US$429m (Based on the trailing twelve months to September 2024).
7.7% = 3300萬美元 ÷ 42900萬美元 (基於截至2024年9月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.08 in profit.
所謂「回報」是指公司過去十二個月內納稅後賺取的 amount。這意味着對於每1美元的股東權益,公司可以產生0.08美元的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
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. 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,我們已經了解了roe是衡量公司盈利能力的一種指標。根據公司選擇重新投資或「保留」多少利潤,我們就能評估公司未來盈利的能力。一般來說,其他條件相同的情況下,具有高roe和盈利保留的公司比不具備這些屬性的公司增長率更高。
Preformed Line Products' Earnings Growth And 7.7% ROE
preformed line products的收益增長和7.7%的roe
At first glance, Preformed Line Products' ROE doesn't look very promising. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 12% either. Preformed Line Products was still able to see a decent net income growth of 17% over the past five years. So, there might be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
乍一看,preformed line products的roe似乎並不令人振奮。 快速深入研究發現,該公司的roe也不如行業平均水平的12%。 preformed line products在過去五年仍然能夠看到17%的淨收入增長。 因此,可能有其他積極影響公司收益增長的因素。 例如 - 高收益留存或有效的管理。
Next, on comparing Preformed Line Products' net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 16% over the last few years.
接下來,將preformed line products的淨收入增長與行業進行比較,我們發現該公司報告的增長與行業過去幾年的16%增長率相似。
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Preformed Line Products is trading on a high P/E or a low P/E, relative to its industry.
收益增長是股票估值的一個重要因素。投資者需要接下來確定的是,預期的收益增長,或者缺乏預期收益增長,是否已經反映在股價中。然後這有助於他們判斷股票是走向光明還是走向暗淡未來。預期收益增長的一個很好的指標是市盈率,它決定了市場願意根據股票的盈利前景支付的價格。因此,您可能想要檢查一下Preformed Line Products的市盈率,看它相對於其行業是高還是低。
Is Preformed Line Products Efficiently Re-investing Its Profits?
Preformed Line Products在有效地重新投資其利潤嗎?
Preformed Line Products has a low three-year median payout ratio of 8.4%, meaning that the company retains the remaining 92% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.
Preformed Line Products的三年中位數低至8.4%的支付比率,意味着公司留下了其利潤的剩餘92%。這表明管理層正在重投大部分利潤來發展業務。
Additionally, Preformed Line Products 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.
此外,Preformed Line Products至少在過去十年內支付了股息,這意味着公司對與股東分享利潤非常認真。
Summary
總結
In total, it does look like Preformed Line Products has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. You can see the 1 risk we have identified for Preformed Line Products by visiting our risks dashboard for free on our platform here.
總的來看,Preformed Line Products的業務確實有一些積極的方面。儘管ROE較低,但公司以較高的再投資率,成功實現了盈利的相當增長。雖然我們不會完全忽視這家公司,但我們會努力確定業務的風險程度,以便做出更明智的決定。您可以免費訪問我們平台上的風險儀表盤,查看我們爲Preformed Line Products確定的1項風險。
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Simply Wall St的這篇文章是一般性質的。我們僅基於歷史數據和分析師預測提供評論,使用公正的方法,我們的文章並非意在提供財務建議。這並不構成買入或賣出任何股票的建議,並且不考慮您的目標或財務狀況。我們旨在爲您帶來基於基礎數據驅動的長期聚焦分析。請注意,我們的分析可能未考慮最新的價格敏感公司公告或定性材料。Simply Wall St對提及的任何股票都沒有持倉。