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)經歷了艱難的三個月,股價下跌了15%。但如果你仔細觀察,你可能會猜到,它強勁的財務狀況可能意味着,考慮到市場通常會獎勵財務狀況良好的公司,該股可能會在長期內增值。特別是,我們今天將關注費雷蒂的淨資產收益率。
股本回報率或淨資產收益率是股東要考慮的一個重要因素,因為它告訴他們他們的資本再投資的效率。簡而言之,淨資產收益率顯示了每一美元相對於其股東投資產生的利潤。
查看我們對Ferretti的最新分析
淨資產收益率是如何計算的?
這個股本回報率公式是:
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,Ferretti的淨資產收益率為:
5.9%=4400萬歐元×7.48億歐元(基於截至2022年6月的12個月的往績)。
“收益”是過去12個月的利潤。另一種説法是,該公司每持有價值1港元的股票,就能賺取0.06港元的利潤。
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。根據公司選擇再投資或“保留”多少利潤,我們就能夠評估一家公司未來產生利潤的能力。一般來説,在其他條件相同的情況下,股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
費雷蒂盈利增長與5.9%淨資產收益率的並列比較
當你第一眼看到它時,費雷蒂的淨資產收益率看起來並不那麼吸引人。然而,該公司的淨資產收益率高於4.6%的行業平均淨資產收益率,這絕對是有趣的。這可能在一定程度上解釋了費雷蒂在過去五年中的温和增長9.8%,以及其他因素。請記住,該公司的淨資產收益率(ROE)確實較低。只是行業的淨資產收益率較低。因此,收益的增長也可能是其他因素的結果。例如-高收益留存或公司屬於高增長行業。
接下來,在與行業淨收入增長進行比較時,我們發現,法雷蒂報告的增長數字與同期下降11%的行業平均水平相比相當有利。
聯交所:9638過去盈利增長2022年8月5日
賦予一家公司價值的基礎在很大程度上與其盈利增長掛鈎。對於投資者來説,重要的是知道市場是否已經消化了公司預期的收益增長(或下降)。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。9638的價值公平嗎?這張關於公司內在價值的信息圖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,其可觀的收益增長可能可以解釋為其較低的三年中值派息率為13%(或留存率為87%),這表明該公司正在將大部分利潤用於增長業務。
我們最新的分析師數據顯示,該公司未來三年的派息率預計約為14%。然而,儘管派息率沒有預期的變化,法雷蒂的淨資產收益率預計將上升到8.0%。
結論
總體而言,我們對費雷蒂的表現相當滿意。特別是,我們喜歡該公司以適度的回報率對其業務進行大量再投資。不出所料,這導致了令人印象深刻的收益增長。既然如此,最新的分析師預測顯示,該公司的收益將繼續增長。要了解更多分析師對該公司的最新預測,請查看分析師對該公司預測的可視化。
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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。