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Is Franklin Electric Co., Inc.'s (NASDAQ:FELE) Recent Stock Performance Tethered To Its Strong Fundamentals?

Is Franklin Electric Co., Inc.'s (NASDAQ:FELE) Recent Stock Performance Tethered To Its Strong Fundamentals?

是富蘭克林電氣公司嗎?”s(納斯達克股票代碼:FELE)最近的股票表現與其強勁的基本面息息相關?
Simply Wall St ·  04/03 12:33

Franklin Electric (NASDAQ:FELE) has had a great run on the share market with its stock up by a significant 11% over the last three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Specifically, we decided to study Franklin Electric's ROE in this article.

富蘭克林電氣(納斯達克股票代碼:FELE)在股票市場上表現良好,其股票在過去三個月中大幅上漲了11%。鑑於公司的出色表現,我們決定更仔細地研究其財務指標,因爲公司的長期財務狀況通常決定市場業績。具體而言,我們決定在本文中研究富蘭克林電氣的投資回報率。

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits.

投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。換句話說,它揭示了公司成功地將股東投資轉化爲利潤。

How To Calculate Return On Equity?

如何計算股本回報率?

The formula for ROE is:

ROE 的公式是:

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 Franklin Electric is:

因此,根據上述公式,富蘭克林電氣的投資回報率爲:

16% = US$195m ÷ US$1.2b (Based on the trailing twelve months to December 2023).

16% = 1.95億美元 ÷ 12億美元(基於截至2023年12月的過去十二個月)。

The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.16 in profit.

“回報” 是過去十二個月的稅後收入。另一種思考方式是,公司每持有價值1美元的股權,就能獲得0.16美元的利潤。

What Is The Relationship Between ROE And Earnings Growth?

投資回報率與收益增長之間有什麼關係?

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.

到目前爲止,我們已經了解到,投資回報率衡量的是公司創造利潤的效率。根據公司選擇將多少利潤進行再投資或 “保留”,我們便能夠評估公司未來創造利潤的能力。一般而言,在其他條件相同的情況下,股本回報率和利潤留存率高的公司的增長率要高於不具有這些屬性的公司。

Franklin Electric's Earnings Growth And 16% ROE

富蘭克林電氣的收益增長和16%的投資回報率

To begin with, Franklin Electric seems to have a respectable ROE. Especially when compared to the industry average of 13% the company's ROE looks pretty impressive. This probably laid the ground for Franklin Electric's moderate 19% net income growth seen over the past five years.

首先,富蘭克林電氣的投資回報率似乎不錯。特別是與行業平均水平的13%相比,該公司的投資回報率看起來相當可觀。這可能爲富蘭克林電氣在過去五年中實現19%的溫和淨收入增長奠定了基礎。

We then compared Franklin Electric's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 7.4% in the same 5-year period.

然後,我們將富蘭克林電氣的淨收入增長與該行業進行了比較,我們很高興地看到,與該行業相比,該公司的增長數字更高,該行業在同期的5年增長率爲7.4%。

past-earnings-growth
NasdaqGS:FELE Past Earnings Growth April 3rd 2024
納斯達克GS:Fele過去的收益增長2024年4月3日

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. What is FELE worth today? The intrinsic value infographic in our free research report helps visualize whether FELE is currently mispriced by the market.

爲公司附加價值的基礎在很大程度上與其收益增長息息相關。無論如何,投資者應設法確定預期的收益增長或下降是否已計入其中。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。今天的 FELE 值多少錢?我們的免費研究報告中的內在價值信息圖有助於直觀地了解市場目前是否對FELE進行了錯誤的定價。

Is Franklin Electric Efficiently Re-investing Its Profits?

富蘭克林電氣能否有效地對其利潤進行再投資?

Franklin Electric has a low three-year median payout ratio of 21%, meaning that the company retains the remaining 79% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.

富蘭克林電氣的三年中位數派息率較低,爲21%,這意味着該公司保留了剩餘的79%的利潤。這表明管理層正在將大部分利潤再投資以發展業務。

Additionally, Franklin Electric 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. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 22%.

此外,富蘭克林電氣已經在至少十年內派發了股息,這意味着該公司非常認真地與股東分享利潤。我們的最新分析師數據顯示,公司未來三年的派息率預計約爲22%。

Conclusion

結論

On the whole, we feel that Franklin Electric's performance has been quite good. 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 substantial 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 latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.

總的來說,我們認爲富蘭克林電氣的表現相當不錯。具體而言,我們喜歡該公司以高回報率再投資其利潤的很大一部分。當然,這導致該公司的收益大幅增長。既然如此,對分析師最新預測的研究表明,預計該公司未來的收益增長將放緩。要詳細了解分析師對公司的最新預測,請查看該公司的分析師預測的可視化。

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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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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。

声明:本內容僅用作提供資訊及教育之目的,不構成對任何特定投資或投資策略的推薦或認可。 更多信息
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