Declining Stock and Solid Fundamentals: Is The Market Wrong About Innospec Inc. (NASDAQ:IOSP)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Innospec Inc. (NASDAQ:IOSP)?
With its stock down 7.9% over the past month, it is easy to disregard Innospec (NASDAQ:IOSP). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Innospec's ROE.
在过去的一个月里，其股价下跌了7.9%，人们很容易忽视InnoSpec(纳斯达克代码：IOSP)。然而，仔细看看它稳健的财务状况可能会让你重新考虑。鉴于基本面因素通常会推动长期市场结果，该公司值得关注。在本文中，我们决定将重点放在InnoSpec的ROE上。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回报率(ROE)是用来评估公司管理层利用公司资本效率的关键指标。简而言之，它衡量的是一家公司相对于股东权益的盈利能力。
See our latest analysis for Innospec
查看我们对InnoSpec的最新分析
How Do You Calculate Return On Equity?
你如何计算股本回报率？
ROE can be calculated by using the formula:
可使用以下公式计算净资产收益率：
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 Innospec is:
因此，根据上面的公式，InnoSpec的净资产收益率为：
12% = US$126m ÷ US$1.1b (Based on the trailing twelve months to June 2023).
12%=1.26亿美元×11亿美元(基于截至2023年6月的12个月)。
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 $0.12 in profit.
“回报”指的是企业在过去一年中获得的收入。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0.12美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
净资产收益率与盈利增长之间有什么关系？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
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。假设其他条件相同，与没有相同特征的公司相比，拥有更高股本回报率和更高利润保留率的公司通常会有更高的增长率。
A Side By Side comparison of Innospec's Earnings Growth And 12% ROE
InnoSpec盈利增长与12%净资产收益率的并列比较
At first glance, Innospec seems to have a decent ROE. Further, the company's ROE is similar to the industry average of 14%. This certainly adds some context to Innospec's moderate 12% net income growth seen over the past five years.
乍一看，InnoSpec似乎有不错的净资产收益率。此外，该公司的净资产收益率(ROE)接近14%的行业平均水平。这无疑为InnoSpec在过去五年中12%的净收入温和增长增添了一些背景。
As a next step, we compared Innospec's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 14% in the same period.
作为下一步，我们将InnoSpec的净收入增长与行业进行了比较，并失望地看到，该公司的增长低于同期14%的行业平均增长。
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. Is Innospec fairly valued compared to other companies? These 3 valuation measures might help you decide.
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。与其他公司相比，InnoSpec的价值是否公平？这3个估值指标可能会帮助你做出决定。
Is Innospec Using Its Retained Earnings Effectively?
InnoSpec是否有效地利用了其留存收益？
Innospec has a three-year median payout ratio of 29%, which implies that it retains the remaining 71% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
InnoSpec的三年中值派息率为29%，这意味着它保留了剩余71%的利润。这表明，它的股息得到了很好的覆盖，考虑到该公司看到的可观增长，管理层似乎正在有效地对其收益进行再投资。
Additionally, Innospec has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders.
此外，InnoSpec在至少十年的时间里支付了股息，这意味着该公司非常认真地与股东分享利润。
Conclusion
结论
Overall, we are quite pleased with Innospec's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总体而言，我们对InnoSpec的表现相当满意。具体地说，我们喜欢该公司将一大笔利润以高回报率进行再投资。当然，这导致该公司的收益出现了可观的增长。话虽如此，但从目前分析师的预估来看，我们发现该公司的盈利势头有望增强。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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