Is Zurn Elkay Water Solutions Corporation's (NYSE:ZWS) Recent Performance Underpinned By Weak Financials?
Is Zurn Elkay Water Solutions Corporation's (NYSE:ZWS) Recent Performance Underpinned By Weak Financials?
It is hard to get excited after looking at Zurn Elkay Water Solutions' (NYSE:ZWS) recent performance, when its stock has declined 15% over the past three months. Given that stock prices are usually driven by a company's fundamentals over the long term, which in this case look pretty weak, we decided to study the company's key financial indicators. Specifically, we decided to study Zurn Elkay Water Solutions' ROE in this article.
看到Zurn Elkay Water Solutions(纽约证券交易所股票代码：ZWS)最近的表现，很难感到兴奋，其股价在过去三个月里下跌了15%。鉴于股价通常是由一家公司的基本面长期驱动的，在这种情况下，基本面看起来相当疲软，我们决定研究该公司的关键财务指标。具体地说，我们决定在本文中研究Zurn Elkay Water Solutions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. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
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。换句话说，这是一个衡量公司股东提供的资本回报率的盈利比率。
See our latest analysis for Zurn Elkay Water Solutions
查看我们对Zurn Elkay水务解决方案的最新分析
How Do You Calculate Return On Equity?
你如何计算股本回报率？
Return on equity can be calculated by using the formula:
股本回报率可使用以下公式计算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率=(持续经营的)净利润？股东权益
So, based on the above formula, the ROE for Zurn Elkay Water Solutions is:
因此，根据上述公式，Zurn Elkay Water Solutions的净资产收益率为：
3.1% = US$50m ÷ US$1.6b (Based on the trailing twelve months to September 2022).
3.1%=5,000万美元？16亿美元(基于截至2022年9月的12个月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.03 in profit.
“回报”就是年度利润。一种将其概念化的方法是，公司每拥有1美元的股东资本，就能获得0.03美元的利润。
What Has ROE Got To Do With Earnings Growth?
净资产收益率与盈利增长有什么关系？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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. 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.
我们已经证实，净资产收益率是一家公司未来收益的有效盈利指标。根据公司将这些利润再投资或“保留”多少，以及这样做的效率如何，我们就能够评估一家公司的收益增长潜力。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。
Zurn Elkay Water Solutions' Earnings Growth And 3.1% ROE
Zurn Elkay Water Solutions的收益增长和3.1%的净资产收益率
It is quite clear that Zurn Elkay Water Solutions' ROE is rather low. Even when compared to the industry average of 23%, the ROE figure is pretty disappointing. Therefore, it might not be wrong to say that the five year net income decline of 26% seen by Zurn Elkay Water Solutions was possibly a result of it having a lower ROE. However, there could also be other factors causing the earnings to decline. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
很明显，Zurn Elkay Water Solutions的净资产收益率(ROE)相当低。即使与23%的行业平均水平相比，净资产收益率数字也相当令人失望。因此，说Zurn Elkay Water Solutions的五年净收入下降26%可能是因为它的净资产收益率较低，这可能是正确的。然而，也可能有其他因素导致收益下降。例如，该公司的派息率非常高，或者面临竞争压力。
However, when we compared Zurn Elkay Water Solutions' growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 13% in the same period. This is quite worrisome.
然而，当我们将Zurn Elkay Water Solutions的增长与行业进行比较时，我们发现，尽管该公司的收益一直在缩水，但同期该行业的收益增长了13%。这相当令人担忧。
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). Doing so will help them establish if the stock's future looks promising or ominous. 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 Zurn Elkay Water Solutions is trading on a high P/E or a low P/E, relative to its industry.
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)。这样做将有助于他们确定该股的未来看起来是光明的还是不祥的。衡量预期收益增长的一个很好的指标是市盈率，它根据一只股票的盈利前景决定市场愿意为其支付的价格。因此，你可能想看看Zurn Elkay Water Solutions相对于其行业是高市盈率还是低市盈率。
Is Zurn Elkay Water Solutions Making Efficient Use Of Its Profits?
Zurn Elkay水务解决方案公司是否有效利用了其利润？
Zurn Elkay Water Solutions has a high three-year median payout ratio of 61% (that is, it is retaining 39% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. Our risks dashboard should have the 2 risks we have identified for Zurn Elkay Water Solutions.
Zurn Elkay Water Solutions的三年中值派息率高达61%(即，它保留了39%的利润)。这表明该公司正在将大部分利润作为股息支付给股东。这在一定程度上解释了为什么它的收益一直在缩水。这家企业只剩下一小部分资金可以再投资--这是一个恶性循环，从长远来看对公司没有好处。我们的风险控制面板应该包含我们为Zurn Elkay Water Solutions确定的两个风险。
Moreover, Zurn Elkay Water Solutions has been paying dividends for three years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer consistent dividends even though earnings have been shrinking. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 26% over the next three years.
此外，Zurn Elkay Water Solutions已经支付了三年的股息，这是一个相当长的时间，这表明管理层肯定已经意识到，尽管收益一直在缩水，但股东更喜欢一致的股息。分析师现有的预估显示，该公司未来三年的派息率预计将降至26%。
Summary
摘要
Overall, we would be extremely cautious before making any decision on Zurn Elkay Water Solutions. The company has seen a lack of earnings growth as a result of retaining very little profits and whatever little it does retain, is being reinvested at a very low rate of return. 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，在对Zurn Elkay Water Solutions做出任何决定之前，我们将极其谨慎。由于保留了很少的利润，该公司的收益增长乏力，而且无论它保留的是什么，再投资的回报率都非常低。既然如此，最新的行业分析师预测显示，分析师们预计该公司的收益增长率将大幅提高。这些分析师的预期是基于对该行业的广泛预期，还是基于该公司的基本面？点击此处进入我们分析师对该公司的预测页面。
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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.
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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。