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Is Nexstar Media Group, Inc.'s (NASDAQ:NXST) 15% ROE Better Than Average?

Is Nexstar Media Group, Inc.'s (NASDAQ:NXST) 15% ROE Better Than Average?

是 Nexstar Media Group, Inc. 's(納斯達克股票代碼:NXST)15% 的投資回報率高於平均水平?
Simply Wall St ·  02/01 06:54

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Nexstar Media Group, Inc. (NASDAQ:NXST), by way of a worked example.

許多投資者仍在學習在分析股票時可能有用的各種指標。本文適用於那些想了解股本回報率(ROE)的人。我們將使用投資回報率來研究Nexstar Media Group, Inc.(納斯達克股票代碼:NXST),舉一個可行的例子。

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。簡而言之,投資回報率顯示了每美元從其股東投資中產生的利潤。

How Is ROE Calculated?

ROE 是如何計算的?

ROE can be calculated by using the formula:

ROE 可以通過以下公式計算:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益

So, based on the above formula, the ROE for Nexstar Media Group is:

因此,根據上述公式,Nexstar Media Group的投資回報率爲:

15% = US$349m ÷ US$2.3b (Based on the trailing twelve months to September 2023).

15% = 3.49億美元 ÷ 23億美元(基於截至2023年9月的過去十二個月)。

The 'return' is the amount earned after tax over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.15 in profit.

“回報” 是過去十二個月的稅後收入。這意味着,每持有價值1美元的股東權益,公司就會產生0.15美元的利潤。

Does Nexstar Media Group Have A Good ROE?

Nexstar Media Group 的投資回報率是否良好?

By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, Nexstar Media Group has a superior ROE than the average (9.9%) in the Media industry.

通過將公司的投資回報率與其行業平均水平進行比較,我們可以快速衡量其表現如何。這種方法的侷限性在於,有些公司與其他公司有很大不同,即使在相同的行業分類中也是如此。令人高興的是,Nexstar媒體集團的投資回報率高於媒體行業的平均水平(9.9%)。

roe
NasdaqGS:NXST Return on Equity February 1st 2024
NASDAQGS: NXST 股本回報率 2024 年 2 月 1 日

That's clearly a positive. With that said, a high ROE doesn't always indicate high profitability. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. You can see the 4 risks we have identified for Nexstar Media Group by visiting our risks dashboard for free on our platform here.

這顯然是積極的。話雖如此,高投資回報率並不總是表示高盈利能力。除了淨收入的變化外,較高的投資回報率也可能是高債務相對於股本的結果,這表明存在風險。您可以通過訪問我們的 Nexstar Media Group 查看我們爲Nexstar Media Group確定的四種風險 風險儀表板 在我們的平台上免費使用。

How Does Debt Impact Return On Equity?

債務如何影響股本回報率?

Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.

實際上,所有公司都需要資金來投資業務,以增加利潤。這些現金可以來自留存收益、發行新股(股權)或債務。在第一和第二種情況下,投資回報率將反映出現金投資業務的使用情況。在後一種情況下,用於增長的債務將提高回報,但不會影響總權益。因此,債務的使用可以提高投資回報率,儘管比喻地說,在暴風雨天氣中還會帶來額外的風險。

Combining Nexstar Media Group's Debt And Its 15% Return On Equity

合併Nexstar Media Group的債務及其15%的股本回報率

It's worth noting the high use of debt by Nexstar Media Group, leading to its debt to equity ratio of 2.93. There's no doubt its ROE is decent, but the very high debt the company carries is not too exciting to see. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.

值得注意的是,Nexstar Media Group大量使用債務,導致其債務權益比率爲2.93。毫無疑問,其投資回報率不錯,但該公司揹負的巨額債務並不令人興奮。債務會增加風險,減少公司未來的選擇,因此您通常希望從使用債務中獲得豐厚的回報。

Summary

摘要

Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.

股本回報率對於比較不同業務的質量很有用。在我們的賬簿中,儘管債務很低,但質量最高的公司的股本回報率卻很高。如果兩家公司的投資回報率相同,那麼我通常更喜歡負債較少的公司。

But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company.

但是,當企業質量很高時,市場通常會以反映這一點的價格對其進行出價。重要的是要考慮其他因素,例如未來的利潤增長以及未來需要多少投資。因此,我認爲可能值得查看這份關於分析師對公司的預測的免費報告。

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

當然,通過尋找其他地方,你可能會找到一筆不錯的投資。因此,來看看這份有趣的公司的免費清單吧。

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。

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