Cisco Systems, Inc.'s (NASDAQ:CSCO) Has Had A Decent Run On The Stock Market: Are Fundamentals In The Driver's Seat?
Cisco Systems, Inc.'s (NASDAQ:CSCO) Has Had A Decent Run On The Stock Market: Are Fundamentals In The Driver's Seat?
Cisco Systems' (NASDAQ:CSCO) stock up by 4.5% over the past month. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Specifically, we decided to study Cisco Systems' ROE in this article.
思科系统（NASDAQ：CSCO）的股价在过去一个月内上涨了4.5%。众所周知，长期基本面与市场价格走势有很强的相关性，因此我们决定研究该公司的关键财务指标，以确定它们在最近的价格走势中是否起到任何作用。具体地，在本文中，我们决定研究思科系统的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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
净资产收益率或roe是用于评估公司管理层如何有效利用公司资本的重要衡量标准。简单地说，它用于评估公司相对于其股本资本的盈利能力。
How Is ROE Calculated?
净资产收益率怎么计算？
The formula for ROE is:
roe的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润（从持续经营中获得）÷ 股东权益
So, based on the above formula, the ROE for Cisco Systems is:
因此，根据上述公式，思科系统的ROE为：
26% = US$12b ÷ US$46b (Based on the trailing twelve months to April 2024).
26%= 120亿美元 ÷ 460亿美元(截至2024年4月后12个月)。
The 'return' is the profit over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.26 in profit.
“回报”是过去12个月的利润。换句话说，对于每1美元的股本，公司能够赚取0.26美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
既然我们已经确定ROE是一种有效的利润生成标准，用于评估公司未来的盈利能力，我们现在需要评估公司“保留”为未来增长而重新投资的利润多少，这使我们对公司的增长潜力有了一个了解。一般而言，在其他条件相等的情况下，ROE和利润留存高的公司，增长率比没有这些属性的公司要高。
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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.
我们已经建立了roe作为公司未来收益的有效利润生成测量工具。我们现在需要评估公司再投资或“保留”未来增长多少盈利，这会让我们对公司的增长潜力有一个想法。其他一切都相等的情况下，roe和利润保留都较高的公司通常是在与这些功能不同的公司相比具有更高增长率的公司。
A Side By Side comparison of Cisco Systems' Earnings Growth And 26% ROE
思科系统盈利增长和26% ROE的并置比较
First thing first, we like that Cisco Systems has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 7.1% which is quite remarkable. Despite this, Cisco Systems' five year net income growth was quite low averaging at only 2.5%. That's a bit unexpected from a company which has such a high rate of return. Such a scenario is likely to take place when a company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures.
首先，我们很喜欢思科系统的出色roe。此外，该公司的roe高于行业平均水平7.1％，这非常显着。尽管如此，思科系统的五年净收入增长率相当低，平均仅为2.5％。这对于一个收益率如此高的公司来说有点出乎意料。这种情况很可能发生在公司将其收益的一大部分作为分红派息支付，或者面临竞争压力时。
We then compared Cisco Systems' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 10% in the same 5-year period, which is a bit concerning.
我们随后将思科系统的净收入增长与行业进行了比较，并发现该公司的增长率低于同一5年期间10%的行业平均增长率，这有点令人担忧。
NasdaqGS:CSCO Past Earnings Growth July 19th 2024
纳斯达克：CSCO过去的盈利增长情况2024年7月19日
Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is CSCO fairly valued? This infographic on the company's intrinsic value has everything you need to know.
盈利增长是考虑估值股票时重要的指标。投资者知道市场是否为该公司预期的盈利增长（或下降）定价，这有助于他们确定该股票是有前途还是前景黯淡。CSCO是否定价合理？这个关于公司内在价值的信息图表有你想要了解的一切。
Is Cisco Systems Efficiently Re-investing Its Profits?
思科系统是否有效地重新投资其利润？
With a high three-year median payout ratio of 53% (or a retention ratio of 47%), most of Cisco Systems' profits are being paid to shareholders. This definitely contributes to the low earnings growth seen by the company.
由于思科系统的三年平均派息率高达53％（或保留率为47％），该公司大部分利润正在支付给股东。这绝对有助于公司净利润增长率较低。
Moreover, Cisco Systems 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. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 44%. As a result, Cisco Systems' ROE is not expected to change by much either, which we inferred from the analyst estimate of 30% for future ROE.
此外，思科系统已经连续十年或更长时间支付股息，这表明管理层必须认为股东更喜欢股息而不是盈利增长。根据最新的分析师预测，我们发现该公司未来三年的派息比例预计将保持在44％左右。因此，我们从分析师对未来roe的30％预测推断出，思科系统的roe不太可能发生太大的变化。
Conclusion
最后，总的来说，我们对阿拉莫集团的表现非常满意。特别是，公司在大量投资业务和高回报率方面表现出色，这导致其盈利规模的显着增长。但是，最新分析师预测的研究表明，预计该公司未来的盈利增长将放缓。
On the whole, we do feel that Cisco Systems has some positive attributes. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return. Investors could have benefitted from the high ROE, had the company been reinvesting more of its earnings. As discussed earlier, the company is retaining a small portion of its profits. With that said, on studying the latest analyst forecasts, we found that while the company has seen growth in its past earnings, analysts expect its future earnings to shrink. 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.
总体而言，我们认为思科系统有一些积极的属性。然而，低增长的收益增长有点令人担忧，特别是考虑到该公司的高收益率。如果该公司将其收益重新投资更多，投资者可以从高roe中获益。正如之前所讨论的，公司保留了其利润的一小部分。话虽如此，在研究最新的分析师预测时，我们发现，尽管该公司过去的收益增长有所增长，但分析师预计其未来的收益将会下降。要了解关于该公司未来收益增长预测的更多信息，请查看此免费分析师预测报告。