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Is ITT Inc.'s (NYSE:ITT) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?

Is ITT Inc.'s (NYSE:ITT) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?

ITt Inc.(紐交所:ITT)股票最近的表現是否受到其吸引人的財務前景的推動?
Simply Wall St ·  12/11 19:34

Most readers would already be aware that ITT's (NYSE:ITT) stock increased significantly by 17% 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. Particularly, we will be paying attention to ITT's ROE today.

大多數讀者可能已經意識到,ITT(紐交所:ITT)在過去三個月裏股價顯著上漲了17%。 由於市場通常關注公司的長期基本面,我們決定研究公司的關鍵業績因子,以看看它們是否可能影響市場。 尤其是,我們今天將關注ITT的ROE。

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

股本回報率(ROE)是測試公司如何有效增長其價值和管理投資者資金的指標。簡單來說,它用於評估公司在其股本資本方面的盈利能力。

How To Calculate Return On Equity?

如何計算股東權益回報率?

The formula for ROE is:

roe的公式是:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

股東權益回報率 = 淨利潤(來自持續運營)÷ 股東權益

So, based on the above formula, the ROE for ITT is:

因此,根據上述公式,ITT的ROE爲:

18% = US$488m ÷ US$2.8b (Based on the trailing twelve months to September 2024).

18% = US$48800萬 ÷ US$28億(基於截至2024年9月的過去十二個月)。

The 'return' is the income the business earned over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.18 in profit.

「回報」是業務在過去一年內賺取的收入。這意味着,對於每1美元的股東權益,公司產生了0.18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?

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. 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,我們已經知道ROE測量公司如何高效地生成利潤。基於公司選擇重新投資或「保留」其利潤的比例,我們能夠評估公司未來生成利潤的能力。假設其他所有因素保持不變,則ROE和利潤保留率越高,公司的增長率也越高,與不一定具備這些特徵的公司相比。

A Side By Side comparison of ITT's Earnings Growth And 18% ROE

ITT的收益增長與18%的ROE的並排比較

To begin with, ITT seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 15%. This certainly adds some context to ITT's decent 17% net income growth seen over the past five years.

首先,ITT似乎擁有一個可觀的ROE。此外,該公司的ROE與行業平均水平15%相比非常有利。這無疑爲ITT在過去五年中實現的17%的淨利潤增長提供了一些背景。

Next, on comparing ITT's 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ITT的淨利潤增長與行業進行比較,我們發現公司的報告增長與過去幾年行業平均增長率16%相似。

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NYSE:ITT Past Earnings Growth December 11th 2024
紐交所:ITT過去的收益增長 2024年12月11日

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. What is ITT worth today? The intrinsic value infographic in our free research report helps visualize whether ITT is currently mispriced by the market.

對公司價值評估的基礎在很大程度上與其盈利增長相關。投資者應該嘗試判斷預期的盈利增長或下降是否已經反映在股價中。這樣能夠幫助他們判斷股票的未來是光明還是黯淡。那麼,ITt今天值多少錢?我們免費研究報告中的內在價值信息圖可以幫助可視化ITt是否被市場錯誤定價。

Is ITT Efficiently Re-investing Its Profits?

ITt是否有效地再投資其利潤?

ITT has a low three-year median payout ratio of 23%, meaning that the company retains the remaining 77% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.

ITt的三年期中位支付比率僅爲23%,這意味着公司保留了77%的利潤。這表明管理層正在將大部分利潤再投資於業務發展。

Additionally, ITT 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. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 16% over the next three years. Despite the lower expected payout ratio, the company's ROE is not expected to change by much.

此外,該公司在至少十年內支付了分紅派息,這意味着公司十分重視與股東分享其利潤。 經過對最新分析師共識數據的研究,我們發現公司的未來派息比率預計將在接下來的三年內降至16%。儘管預計派息比率降低,但公司的ROE並不預計會有太大變化。

Summary

總結

Overall, we are quite pleased with ITT's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.

總體而言,我們對ITT的表現感到相當滿意。特別是,看到公司在其業務上進行大量投資,以及高回報率,導致其收益大幅增長,這一點非常好。不過,公司的收益增長預計會放緩,正如當前分析師的預測所預示的。要了解更多關於公司未來收益增長預測的信息,請查看這份關於公司分析師預測的免費報告,了解更多。

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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.

對本文有反饋?對內容有疑慮?請直接與我們聯繫。或者,發送電子郵件至 editorial-team (at) simplywallst.com。
這篇來自Simply Wall St的文章是一般性的。我們根據歷史數據和分析師預測提供評論,採用無偏見的方法,我們的文章並不旨在提供財務建議。它不構成對任何股票的買入或賣出建議,也未考慮到您的目標或財務狀況。我們旨在爲您提供以基本數據驅動的長期分析。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在提到的任何股票中均沒有持倉。

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