Boasting A 17% Return On Equity, Is Nexstar Media Group, Inc. (NASDAQ:NXST) A Top Quality Stock?
Boasting A 17% Return On Equity, Is Nexstar Media Group, Inc. (NASDAQ:NXST) A Top Quality Stock?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Nexstar Media Group, Inc. (NASDAQ:NXST), by way of a worked example.
我們能夠做出的最好投資之一就是投資我們自己的知識和技能。有了這個想法,本文將通過一個案例來演示如何使用股東權益回報率(ROE)更好地了解業務。我們將以Nexstar Media Group, Inc.(納斯達克:NXST)爲例,通過一個案例來使用ROE進行審計。
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 To Calculate Return On Equity?
如何計算股東權益報酬率?
The formula for ROE is:
roe的公式是:
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 Nexstar Media Group is:
因此,根據上述公式,Nexstar Media Group的ROE爲:
17% = US$380m ÷ US$2.3b (Based on the trailing twelve months to June 2024).
17%= 3.8億美元÷ 23億美元(基於截至2024年6月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.17.
'收益'是指公司在過去一年內的收益。因此,這意味着對於每$1的股東投資,公司產生$0.17的利潤。
Does Nexstar Media Group Have A Good Return On Equity?
Nexstar Media Group是否具有良好的股東權益回報率?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As you can see in the graphic below, Nexstar Media Group has a higher ROE than the average (13%) in the Media industry.
可以說,評估公司ROE的最簡單方法是將其與所在行業的平均水平進行比較。但很明顯,這遠非完美的衡量標準,因爲即使在同一行業分類中,公司之間也存在顯著差異。正如下圖所示,Nexstar Media Group的ROE高於媒體行業的平均水平(13%)。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240814/0-c69581c32b2f58a1564e067b77b5d715-0-b56a7fd410af29c5b276552d57701465.png/big)
That's clearly a positive. With that said, a high ROE doesn't always indicate high profitability. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. Our risks dashboardshould have the 2 risks we have identified for Nexstar Media Group.
這顯然是一個積極的方面。儘管如此,高ROE並不總是意味着高盈利能力,特別是當企業利用高槓杆水平來融資債務,這可能會提高其ROE,但高槓杆水平會讓公司面臨風險。我們的風險面板應該有我們已經爲Nexstar Media Group確定的兩個風險。
Why You Should Consider Debt When Looking At ROE
爲什麼在觀察ROE時你應該考慮債務問題?
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used.
公司通常需要投資資金才能增加利潤。投資的資金可以來自前年的利潤(保留收益),發行新股或借款。在前兩種情況下,ROE將捕捉這種使用資本來增長的情況。在後一種情況下,爲了增長而需要的債務會提高回報,但不會影響股東權益。 這將使ROE看起來比如果沒有使用債務要好。
Nexstar Media Group's Debt And Its 17% ROE
Nexstar Media Group的債務及其17%的ROE
Nexstar Media Group clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.97. There's no doubt its ROE is decent, but the very high debt the company carries is not too exciting to see. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
很明顯,Nexstar Media Group通過使用大量債務來提高回報率,因爲其負債股本比爲2.97。毫無疑問,它的ROE不錯,但公司承擔的非常高的債務並不是令人興奮的事情。當公司從中獲得一些不錯的回報時,債務確實帶來了額外的風險。
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股本回報率是衡量企業盈利能力,並將其利潤分配給股東的一項有用指標。在我們的清單中,高質量的公司股本回報率高,債務壓力不大。如果兩家公司的債務資本比大致相同,並且一家公司的ROE更高,則我通常更喜歡具有較高ROE的公司。
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to take a peek at this data-rich interactive graph of forecasts for the company.
但是,當一個公司的質量很高時,市場經常會將其競價上漲以反映這一點。重要的是要考慮其他因素,例如未來的利潤增長-以及未來需要多少投資。因此,您可能需要查看這個數據豐富的公司預測的交互式圖。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然,您也可能通過尋找其他地方來找到出色的投資。因此,不妨查看這個有趣公司的免費列表。
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