Premier, Inc.'s (NASDAQ:PINC) Dismal Stock Performance Reflects Weak Fundamentals
Premier, Inc.'s (NASDAQ:PINC) Dismal Stock Performance Reflects Weak Fundamentals
It is hard to get excited after looking at Premier's (NASDAQ:PINC) recent performance, when its stock has declined 7.1% over the past three months. Given that stock prices are usually driven by a company's fundamentals over the long term, which in this case look pretty weak, we decided to study the company's key financial indicators. Specifically, we decided to study Premier's ROE in this article.
在觀察Premier (納斯達克:PINC) 的最近表現後,很難感到興奮,因爲在過去的三個月中,其股價下跌了7.1%。考慮到股票價格通常是由公司的基本面在長期內推動的,在這種情況下,公司的基本面看起來相當弱,因此我們決定研究該公司的關鍵財務指標。具體而言,我們決定在本文中研究Premier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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
淨資產收益率(roe)是衡量公司經營管理層如何有效利用公司資本的關鍵指標。換言之,它是一種利潤率,衡量由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?
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(從持續經營中獲得)÷ 股東權益
So, based on the above formula, the ROE for Premier is:
因此,根據上述公式,Premier的ROE爲:
3.4% = US$65m ÷ US$1.9b (Based on the trailing twelve months to March 2024).
3.4% = 6500萬美元 ÷ 19億美元(基於過去12個月至2024年3月)。
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 $0.03 in profit.
“回報”是稅後收益,過去12個月的收入。可以這樣理解,對於每1美元的股東資本,公司利潤爲0.03美元。
Why Is ROE Important For Earnings Growth?
ROE對於盈利增長的重要性是什麼?
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. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
到目前爲止,我們已經了解到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,我們就能夠評估公司未來生成利潤的能力。假設其他條件相同,那些具有更高股本回報率和更高利潤留存的公司通常比沒有這些特徵的公司有更高的增長率。
A Side By Side comparison of Premier's Earnings Growth And 3.4% ROE
Premier收益增長率和3.4% ROE的橫向對比
It is hard to argue that Premier's ROE is much good in and of itself. Even when compared to the industry average of 11%, the ROE figure is pretty disappointing. For this reason, Premier's five year net income decline of 20% is not surprising given its lower ROE. However, there could also be other factors causing the earnings to decline. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
Premier的ROE本身並不太好,這很難爭辯。即使與11%的行業平均水平相比,ROE的數字也相當令人失望。因此,考慮到Premier較低的ROE,該公司五年的淨收入下降20%也並不令人意外。然而,也可能存在導致收益下降的其他因素。例如,公司的派息比率非常高,或者面臨競爭壓力。
So, as a next step, we compared Premier's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 5.6% over the last few years.
因此,作爲下一步,我們比較了Premier與行業的表現,並感到失望。儘管該公司一直在縮小其盈利規模,但行業在過去幾年中的盈利增長率爲5.6%。
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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. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Premier's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
給一家公司附加價值的基礎在很大程度上與其盈利增長相關聯。投資者應該嘗試確定預期的盈利增長或下降是否已經價格化。這樣做可以幫助他們確定該股票的未來是否看好或不利。如果你想知道Premier的估值,請查看它的市盈率與行業水平的比較。
Is Premier Making Efficient Use Of Its Profits?
Premier是否有效利用其利潤?
Premier's declining earnings is not surprising given how the company is spending most of its profits in paying dividends, judging by its three-year median payout ratio of 52% (or a retention ratio of 48%). With only very little left to reinvest into the business, growth in earnings is far from likely. Our risks dashboard should have the 3 risks we have identified for Premier.
鑑於Premier三年的中位數派息比率爲52%(或保留比率爲48%),該公司收益下降並不令人驚訝。由於只有很少的資金留給業務再投資,收益增長的可能性很小。我們的風險儀表板應該列出我們爲Premier確定的3個風險。
Additionally, Premier has paid dividends over a period of four years, which means that the company's management is rather focused on keeping up its dividend payments, regardless of the shrinking earnings. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 35% over the next three years. The fact that the company's ROE is expected to rise to 11% over the same period is explained by the drop in the payout ratio.
此外,Premier連續四年派發股息,這意味着無論收益縮水與否,公司管理層都非常注重維持其股息支付。在研究最新的分析師共識數據時,我們發現該公司未來的派息比率預計將在未來三年內下降到35%。該公司的ROE預計將在同一時期上升至11%,這一點可以通過派息比率下降來解釋。
Conclusion
結論
On the whole, Premier's performance is quite a big let-down. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. 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,Premier的表現相當令人失望。由於其較低的ROE和業務再投資少,公司的盈利增長率也相對較低。話雖如此,我們研究了最新的分析師預測,並發現雖然該公司過去曾減少收益,但分析師預計其未來的收益將增長。要了解有關該公司未來盈利增長預測的更多信息,請查看有關該公司分析師預測的免費報告。
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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。