It is hard to get excited after looking at Commvault Systems' (NASDAQ:CVLT) recent performance, when its stock has declined 11% over the past three months. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Commvault Systems' ROE today.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
See our latest analysis for Commvault Systems
How Is ROE Calculated?
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 Commvault Systems is:
8.6% = US$23m ÷ US$270m (Based on the trailing twelve months to June 2022).
The 'return' is the income the business earned over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.09.
What Is The Relationship Between ROE And Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. 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.
A Side By Side comparison of Commvault Systems' Earnings Growth And 8.6% ROE
At first glance, Commvault Systems' ROE doesn't look very promising. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 12%. However, we we're pleasantly surprised to see that Commvault Systems grew its net income at a significant rate of 43% in the last five years. We reckon that there could be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.
As a next step, we compared Commvault Systems' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 25%.
NasdaqGS:CVLT Past Earnings Growth September 13th 2022
Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Commvault Systems''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Commvault Systems Efficiently Re-investing Its Profits?
Given that Commvault Systems 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
Overall, we feel that Commvault Systems certainly does have some positive factors to consider. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. 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Commvault Systems(納斯達克：CVLT)最近的表現，很難感到興奮，它的股票在過去三個月裏下跌了11%。然而，股價通常是由公司的長期財務狀況推動的，在這種情況下，財務狀況看起來相當不錯。今天，我們將特別關注Commvault Systems的淨資產收益率。
股本回報率(ROE)是用來評估公司管理層利用公司資本效率的關鍵指標。換句話説，它揭示了該公司成功地將股東投資轉化為利潤。
查看我們對Commvault系統的最新分析
淨資產收益率是如何計算的？
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，根據上述公式，Commvault Systems的ROE為：
8.6%=2300萬美元×2.7億美元(基於截至2022年6月的12個月的往績)。
“回報”指的是企業在過去一年中獲得的收入。因此，這意味着股東每投資1美元，公司就會產生0.09美元的利潤。
淨資產收益率與盈利增長之間有什麼關係？
到目前為止，我們瞭解到淨資產收益率是衡量一家公司盈利能力的指標。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。
Commvault Systems盈利增長與8.6%淨資產收益率的並列比較
乍一看，Commvault Systems的淨資產收益率看起來並不是很有希望。然後，我們將該公司的淨資產收益率(ROE)與整個行業進行了比較，發現淨資產收益率低於12%的行業平均水平，這讓我們感到失望。然而，令人驚喜的是，我們看到Commvault Systems在過去五年中以43%的顯著速度增長了淨收入。我們認為，可能還有其他因素在起作用。例如，該公司的派息率較低或管理效率較高。
下一步，我們將Commvault Systems的淨收入增長與行業進行比較，令人欣喜的是，我們發現該公司看到的增長高於行業平均25%的增長。
NasdaqGS：CVLT過去的收益增長2022年9月13日
盈利增長是評估一隻股票時需要考慮的一個重要指標。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)。這有助於他們確定這隻股票是為光明還是黯淡的未來做準備。如果你想知道Commvault Systems的估值，可以看看這個衡量其市盈率的指標，與其行業相比。
Commvault Systems是否有效地將其利潤進行了再投資？
鑑於Commvault Systems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業務增長。
摘要
總體而言，我們認為Commvault Systems確實有一些積極的因素需要考慮。憑藉高再投資率，儘管淨資產收益率較低，該公司的收益實現了相當大的增長。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。
