It is hard to get excited after looking at Sonos' (NASDAQ:SONO) recent performance, when its stock has declined 16% over the past three months. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Sonos' ROE in this article.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
See our latest analysis for Sonos
How To Calculate Return On Equity?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Sonos is:
19% = US$123m ÷ US$643m (Based on the trailing twelve months to July 2022).
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.19 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. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
Sonos' Earnings Growth And 19% ROE
At first glance, Sonos seems to have a decent ROE. Even when compared to the industry average of 22% the company's ROE looks quite decent. This probably goes some way in explaining Sonos' significant 67% net income growth over the past five years amongst other factors. However, there could also be other drivers behind this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
We then compared Sonos' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 27% in the same period.
NasdaqGS:SONO Past Earnings Growth September 15th 2022
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Sonos is trading on a high P/E or a low P/E, relative to its industry.
Is Sonos Efficiently Re-investing Its Profits?
Given that Sonos doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
Summary
In total, we are pretty happy with Sonos' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. 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.
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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.
看到SONOS(納斯達克代碼：SONO)最近的表現，很難感到興奮，其股價在過去三個月裏下跌了16%。然而，股價通常是由一家公司的長期財務表現推動的，在這種情況下，這看起來相當有希望。具體地説，我們決定在本文中研究Sonos的ROE。
股本回報率(ROE)是對一家公司增值和管理投資者資金的效率的測試。簡而言之，它是用來評估一家公司相對於其權益資本的盈利能力。
查看我們對Sonos的最新分析
如何計算股本回報率？
可使用以下公式計算淨資產收益率：
股本回報率=(持續經營的)淨利潤？股東權益
因此，根據上面的公式，SONOS的ROE為：
19%=1.23億美元×6.43億美元(基於截至2022年7月的12個月)。
“回報”指的是企業在過去一年中獲得的收入。一種將其概念化的方法是，公司每擁有1美元的股東資本，就會獲得0.19美元的利潤。
為什麼淨資產收益率對收益增長很重要？
到目前為止，我們已經瞭解到淨資產收益率衡量的是一家公司創造利潤的效率。根據公司將這些利潤再投資或“保留”多少，以及這樣做的效率如何，我們就能夠評估一家公司的收益增長潛力。假設其他條件不變，淨資產收益率和利潤保留率越高，與不一定具有這些特徵的公司相比，公司的增長率就越高。
Sonos的收益增長和19%的淨資產收益率
乍一看，Sonos似乎擁有不錯的淨資產收益率。即使與22%的行業平均水平相比，該公司的淨資產收益率看起來也相當不錯。這可能在一定程度上解釋了Sonos在過去五年中淨收入大幅增長67%的原因以及其他因素。然而，這種增長的背後也可能有其他驅動因素。例如，公司管理層可能做出了一些良好的戰略決策，或者公司的派息率較低。
然後，我們將Sonos的淨收入增長與行業進行了比較，我們很高興地看到，與同期27%的行業增長率相比，該公司的增長數字更高。
NasdaqGS：Sono過去的收益增長2022年9月15日
盈利增長是評估一隻股票時需要考慮的一個重要指標。投資者應該嘗試確定預期的收益增長或下降是否已計入價格，無論是哪種情況。通過這樣做，他們將知道股票是將進入清澈的藍色水域，還是等待沼澤水域。衡量預期收益增長的一個很好的指標是市盈率，它根據一隻股票的盈利前景決定市場願意為其支付的價格。因此，你可能想看看Sonos相對於其行業是高市盈率還是低市盈率。
Sonos是否有效地將其利潤進行了再投資？
鑑於Sonos不向股東支付任何股息，我們推斷該公司一直在將所有利潤再投資於增長業務。
摘要
總體而言，我們對索諾斯的表現相當滿意。特別是，我們喜歡該公司對其業務進行大量再投資，並以高回報率進行投資。不出所料，這導致了令人印象深刻的收益增長。既然如此，一項對最新分析師預測的研究表明，預計該公司未來的收益增長將放緩。要了解更多有關該公司未來收益增長預測的信息，請查看以下內容免費報告分析師對該公司的預測，以瞭解更多信息。
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本文由Simply Wall St.撰寫，具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
