Ferretti (HKG:9638) has had a rough three months with its share price down 15%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Ferretti's ROE today.
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. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
View our latest analysis for Ferretti
How Is ROE Calculated?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Ferretti is:
5.9% = €44m ÷ €748m (Based on the trailing twelve months to June 2022).
The 'return' is the profit over the last twelve months. Another way to think of that is that for every HK$1 worth of equity, the company was able to earn HK$0.06 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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.
A Side By Side comparison of Ferretti's Earnings Growth And 5.9% ROE
When you first look at it, Ferretti's ROE doesn't look that attractive. However, the fact that the company's ROE is higher than the average industry ROE of 4.6%, is definitely interesting. This probably goes some way in explaining Ferretti's moderate 9.8% growth over the past five years amongst other factors. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. Therefore, the growth in earnings could also be the result of other factors. Such as- high earnings retention or the company belonging to a high growth industry.
Next, on comparing with the industry net income growth, we found that the growth figure reported by Ferretti compares quite favourably to the industry average, which shows a decline of 11% in the same period.
SEHK:9638 Past Earnings Growth August 5th 2022
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is 9638 fairly valued? This infographic on the company's intrinsic value has everything you need to know.
Is Ferretti Using Its Retained Earnings Effectively?
In Ferretti's case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 13% (or a retention ratio of 87%), which suggests that the company is investing most of its profits to grow its business.
Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 14%. However, Ferretti's ROE is predicted to rise to 8.0% despite there being no anticipated change in its payout ratio.
Conclusion
Overall, we are quite pleased with Ferretti's performance. Particularly, we like that the company is reinvesting heavily into its business at a moderate rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
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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.
法拉蒂(HKG:9638)经历了艰难的三个月,股价下跌了15%。但如果你仔细观察,你可能会猜到,它强劲的财务状况可能意味着,考虑到市场通常会奖励财务状况良好的公司,该股可能会在长期内增值。特别是,我们今天将关注费雷蒂的净资产收益率。
股本回报率或净资产收益率是股东要考虑的一个重要因素,因为它告诉他们他们的资本再投资的效率。简而言之,净资产收益率显示了每一美元相对于其股东投资产生的利润。
查看我们对Ferretti的最新分析
净资产收益率是如何计算的?
这个股本回报率公式是:
股本回报率=(持续经营的)净利润?股东权益
因此,根据上面的公式,Ferretti的净资产收益率为:
5.9%=4400万欧元×7.48亿欧元(基于截至2022年6月的12个月的往绩)。
“收益”是过去12个月的利润。另一种说法是,该公司每持有价值1港元的股票,就能赚取0.06港元的利润。
为什么净资产收益率对收益增长很重要?
到目前为止,我们已经了解到净资产收益率衡量的是一家公司创造利润的效率。根据公司选择再投资或“保留”多少利润,我们就能够评估一家公司未来产生利润的能力。一般来说,在其他条件相同的情况下,股本回报率和利润留存较高的公司比不具备这些特征的公司有更高的增长率。
费雷蒂盈利增长与5.9%净资产收益率的并列比较
当你第一眼看到它时,费雷蒂的净资产收益率看起来并不那么吸引人。然而,该公司的净资产收益率高于4.6%的行业平均净资产收益率,这绝对是有趣的。这可能在一定程度上解释了费雷蒂在过去五年中的温和增长9.8%,以及其他因素。请记住,该公司的净资产收益率(ROE)确实较低。只是行业的净资产收益率较低。因此,收益的增长也可能是其他因素的结果。例如-高收益留存或公司属于高增长行业。
接下来,在与行业净收入增长进行比较时,我们发现,法雷蒂报告的增长数字与同期下降11%的行业平均水平相比相当有利。
联交所:9638过去盈利增长2022年8月5日
赋予一家公司价值的基础在很大程度上与其盈利增长挂钩。对于投资者来说,重要的是知道市场是否已经消化了公司预期的收益增长(或下降)。通过这样做,他们将知道股票是将进入清澈的蓝色水域,还是等待沼泽水域。9638的价值公平吗?这张关于公司内在价值的信息图包含了你需要知道的一切。
法拉蒂是否有效地利用了其留存收益?
在Ferretti的案例中,其可观的收益增长可能可以解释为其较低的三年中值派息率为13%(或留存率为87%),这表明该公司正在将大部分利润用于增长业务。
我们最新的分析师数据显示,该公司未来三年的派息率预计约为14%。然而,尽管派息率没有预期的变化,法雷蒂的净资产收益率预计将上升到8.0%。
结论
总体而言,我们对费雷蒂的表现相当满意。特别是,我们喜欢该公司以适度的回报率对其业务进行大量再投资。不出所料,这导致了令人印象深刻的收益增长。既然如此,最新的分析师预测显示,该公司的收益将继续增长。要了解更多分析师对该公司的最新预测,请查看分析师对该公司预测的可视化。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。