Ciena Corporation (NYSE:CIEN) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?
Ciena Corporation (NYSE:CIEN) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?
Ciena (NYSE:CIEN) has had a great run on the share market with its stock up by a significant 6.4% over the last week. However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health. Particularly, we will be paying attention to Ciena's ROE today.
Ciena (纽交所:CIEN) 在股票市场上表现良好,股价上涨了显著的6.4%。然而,我们决定关注公司的基本面,它似乎不给出公司的财务状况的明确信号。特别是,今天我们将关注Ciena的roe。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE(净资产收益率)是股东需考虑的一个重要因素,因为它告诉他们资本被有效地再投资的效果如何。换句话说,它揭示了公司将股东的投资转化为利润的成功程度。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算:
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 Ciena is:
所以,根据上述公式,Ciena的roe为:
5.3% = US$154m ÷ US$2.9b (Based on the trailing twelve months to April 2024).
5.3% = 美元1.54亿 ÷ 美元29亿(根据最近12个月截至2024年4月)。
The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.05.
“回报”是企业去年所赚取的收入。这意味着对于每1美元股东的投资,该公司会产生0.05美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
ROE与盈利增长之间的关系是什么?
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.
到目前为止,我们已经了解到roe是衡量公司盈利能力的一个指标。基于公司选择重新投资或“留存”的利润比例,我们可以评估公司未来产生利润的能力。其他因素相等的情况下,roe和利润留存率都较高的公司通常比没有这些特征的公司增长率更高。
Ciena's Earnings Growth And 5.3% ROE
Ciena的盈利增长和roe5.3%
When you first look at it, Ciena's ROE doesn't look that attractive. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 9.0% either. Given the circumstances, the significant decline in net income by 6.7% seen by Ciena over the last five years is not surprising. We reckon that there could also be other factors at play here. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
初看起来,Ciena的roe并不那么有吸引力。快速进一步的研究表明,公司的roe与行业平均水平9.0%并不相比。鉴于此情形,Ciena在过去5年中净利润显著下降6.7%并不令人意外。我们认为这里也可能有其他因素在起作用。例如,公司的派息比率非常高,或面临竞争压力。
So, as a next step, we compared Ciena'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 8.3% over the last few years.
因此,作为下一步,我们将Ciena的业绩与行业进行了比较,并失望地发现虽然公司一直在缩减其盈利,但行业在过去几年中以8.3%的速度增长其盈利。
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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. This then helps them determine if the stock is placed for a bright or bleak future. Is Ciena fairly valued compared to other companies? These 3 valuation measures might help you decide.
赋予公司价值的基础在很大程度上与其盈利增长密切相关。投资者应该尝试确定预期的盈利增长或下降,无论哪种情况,是否已经定价。然后这就帮助他们确定股票的未来是光明还是暗淡。Ciena是否与其他公司相比公平价值?这3个估值指标可能会帮助您做出决定。
Is Ciena Using Its Retained Earnings Effectively?
Ciena是否有效地利用了其留存收益?
Ciena doesn't pay any regular dividends, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
Ciena不支付任何定期分红,这意味着该公司保留了所有利润,这使我们想知道,为什么它保留了利润,而不能用它们来发展业务。因此,这里可能还有其他因素正在起作用,可能正在妨碍增长。例如,这家企业面临了一些阻力。
Conclusion
结论
Overall, we have mixed feelings about Ciena. 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. That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate. 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.
总体而言,我们对Ciena持有复杂的感觉。尽管它似乎保留了大部分利润,但鉴于较低的roe,投资者可能并没有从所有的再投资中受益。低盈利增长表明了我们的理论是正确的。即便如此,最新的行业分析师预测表明,分析师们预计将会看到该公司的盈利增长率大幅提高。这些分析师的预测是基于对行业的广泛预期,还是基于公司的基本面?单击此处以访问我们的分析师预测页面。
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