Consolidated Edison (NYSE:ED) Has More To Do To Multiply In Value Going Forward
Consolidated Edison (NYSE:ED) Has More To Do To Multiply In Value Going Forward
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Although, when we looked at Consolidated Edison (NYSE:ED), it didn't seem to tick all of these boxes.
找到一家具有大幅增长潜力的企业并不容易,但是如果我们看一些关键的财务指标,这是可能的。在一个完美的世界中,我们希望看到一家公司向其业务投入更多资本,理想情况下,从这些资本中获得的回报也在增加。简而言之,这些类型的企业是复合机器,这意味着他们不断以更高的回报率对收益进行再投资。但是,当我们查看联合爱迪生(纽约证券交易所代码:ED)时,它似乎并没有勾选所有这些方框。
What Is Return On Capital Employed (ROCE)?
什么是资本使用回报率(ROCE)?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Consolidated Edison is:
对于那些不知道的人来说,ROCE是衡量公司相对于企业使用的资本的年度税前利润(其回报率)的指标。联合爱迪生的计算公式为:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率 = 息税前收益 (EBIT) ¥(总资产-流动负债)
0.048 = US$2.8b ÷ (US$64b - US$6.1b) (Based on the trailing twelve months to September 2023).
0.048 = 28亿美元 ÷(640亿美元-61亿美元) (基于截至2023年9月的过去十二个月)。
So, Consolidated Edison has an ROCE of 4.8%. On its own that's a low return on capital but it's in line with the industry's average returns of 5.1%.
因此,联合爱迪生的投资回报率为4.8%。这本身就是很低的资本回报率,但与该行业5.1%的平均回报率一致。
See our latest analysis for Consolidated Edison
查看我们对联合爱迪生的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231228/0-48bb9488c118dabb794c1725ebb2f0f4-0-bebd69e7179a70ccb947ff8a83fd9b80.png/big)
Above you can see how the current ROCE for Consolidated Edison compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Consolidated Edison here for free.
上面你可以看到合并爱迪生当前的投资回报率与其先前的资本回报率相比如何,但从过去可以看出来的只有那么多。如果你愿意,可以在这里免费查看报道合并爱迪生的分析师的预测。
The Trend Of ROCE
ROCE 的趋势
There are better returns on capital out there than what we're seeing at Consolidated Edison. The company has consistently earned 4.8% for the last five years, and the capital employed within the business has risen 32% in that time. This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments.
那里的资本回报率比我们在联合爱迪生所看到的要好。在过去五年中,该公司的收入一直保持在4.8%,在此期间,公司内部使用的资本增长了32%。这种糟糕的投资回报率目前并不能激发信心,随着所用资本的增加,很明显,该企业没有将资金部署到高回报的投资中。
Our Take On Consolidated Edison's ROCE
我们对合并后的爱迪生投资回报率的看法
As we've seen above, Consolidated Edison's returns on capital haven't increased but it is reinvesting in the business. Since the stock has gained an impressive 43% over the last five years, investors must think there's better things to come. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
正如我们在上面看到的,联合爱迪生的资本回报率没有增加,但它正在对该业务进行再投资。由于该股在过去五年中上涨了令人印象深刻的43%,因此投资者必须认为会有更好的事情发生。但是,如果这些潜在趋势的发展轨迹继续下去,我们认为从现在起它成为多股势力的可能性并不高。
Consolidated Edison does come with some risks though, we found 4 warning signs in our investment analysis, and 2 of those are potentially serious...
但是,合并后的爱迪生确实存在一些风险,我们在投资分析中发现了4个警告信号,其中2个可能很严重...
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
对于那些喜欢投资稳健公司的人,可以查看这份资产负债表稳健和股本回报率高的公司的免费清单。
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.
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。