PC Connection, Inc.'s (NASDAQ:CNXN) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?
PC Connection, Inc.'s (NASDAQ:CNXN) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?
PC Connection's (NASDAQ:CNXN) stock is up by 8.9% over the past three months. However, the company's financials look a bit inconsistent and market outcomes are ultimately driven by long-term fundamentals, meaning that the stock could head in either direction. In this article, we decided to focus on PC Connection's ROE.
過去三個月,PC Connection(納斯達克股票代碼:CNXN)的股票上漲了8.9%。然而,該公司的財務狀況看起來有些不一致,市場結果最終受到長期基本面的驅動,這意味着股票可能會朝任何方向發展。在本文中,我們決定把重點放在PC Connection的roe上。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即淨資產收益率,是一種評估公司如何有效地從股東手中獲取投資回報的有用工具。換句話說,它是一種盈利能力比率,衡量公司股東提供的資本的回報率。
How Is ROE Calculated?
淨資產收益率怎麼計算?
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算:
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 PC Connection is:
因此,根據上述公式,PC Connection的roe爲:
9.6% = US$82m ÷ US$853m (Based on the trailing twelve months to March 2024).
9.6%= US$8200萬 ÷ US$85300萬(截至2024年3月的過去十二個月數據)。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.10 in profit.
“回報”是在過去12個月稅後所賺的金額。這個指標的一種理解方式是,對於每1美元的股東資本,公司的利潤爲0.10美元。
What Has ROE Got To Do With Earnings Growth?
ROE與盈利增長有什麼關係?
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”的利潤數量,我們能夠評估公司未來產生利潤的能力。一般而言,其他條件相等的情況下,具有高股東回報率和利潤保留能力的公司比不具備這些屬性的公司具有更高的增長率。
PC Connection's Earnings Growth And 9.6% ROE
PC Connection的淨利潤增長和9.6%的roe
On the face of it, PC Connection's ROE is not much to talk about. However, its ROE is similar to the industry average of 9.6%, so we won't completely dismiss the company. Having said that, PC Connection has shown a meagre net income growth of 4.1% over the past five years. Remember, the company's ROE is not particularly great to begin with. Hence, this does provide some context to low earnings growth seen by the company.
表面上看,PC Connection的roe並不值得大書特書。然而,其roe與行業平均水平相似,爲9.6%,因此我們不會完全忽視該公司。話雖如此,PC Connection在過去五年裏的淨利潤增長率僅爲4.1%。請記住,該公司的roe本來就不是特別好。因此,這爲公司的較低盈利增長提供了一些背景信息。
We then compared PC Connection's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 15% in the same 5-year period, which is a bit concerning.
然後,我們將PC Connection的淨利潤增長與行業進行比較,發現該公司的增長數字低於同一5年期內行業的平均增長率15%,這有點令人擔憂。
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Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. 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 PC Connection is trading on a high P/E or a low P/E, relative to its industry.
盈利增長是估值股票時需要考慮的重要指標。投資者應嘗試確定預期的盈利增長或下降,無論情況如何,都是定價的因素。這樣做將有助於他們確定股票的未來看起來是有前途還是不妙的。預期盈利增長的一個好指標是市盈率,它根據其收益前景確定市場願意爲一隻股票支付的價格來決定。因此,您可能需要檢查PC Connection的市盈率是相對於其行業而言的高還是低。
Is PC Connection Efficiently Re-investing Its Profits?
PC Connection在有效地重新投資其利潤嗎?
PC Connection has a low three-year median payout ratio of 8.1% (meaning, the company keeps the remaining 92% of profits) which means that the company is retaining more of its earnings. However, the low earnings growth number doesn't reflect this as high growth usually follows high profit retention. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
PC Connection有一個較低的三年中位數派息比率爲8.1%(也就是說,公司保留了其餘92%的利潤),這意味着公司正在保留更多的利潤。然而,低的盈利增長數字並未反映出這一點,因爲高的盈利保留通常會帶來高的增長。因此,可能存在其他因素正在發揮作用,這些因素可能會妨礙增長。例如,該業務面臨一些不利因素。
Moreover, PC Connection has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth.
此外,PC Connection已經連續十年或更長時間支付股息,這表明管理層必須認爲股東更喜歡股息而不是利潤增長。
Conclusion
結論
In total, we're a bit ambivalent about PC Connection's performance. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總的來說,我們對PC Connection的表現有些矛盾。儘管它似乎保留了大部分利潤,但考慮到較低的roe,投資者可能並未從所有的再投資中受益。低的盈利增長表明了我們的理論。話雖如此,最新的行業分析師預測顯示,該公司的盈利預計將加速增長。分析師的這些預期是基於業界的廣泛預期還是基於公司的基本面?單擊此處進入我們的分析師預測頁面。
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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?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋?對內容感到擔憂?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。