st article – Local Collectors Post http://www.localcollectorspost.org/ Thu, 10 Mar 2022 02:54:51 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://www.localcollectorspost.org/wp-content/uploads/2021/03/locacollectorspost-icon-70x70.png st article – Local Collectors Post http://www.localcollectorspost.org/ 32 32 Ghitha Holding PJSC (ADX:GHITHA) Shares are on an Uptrend: Are Strong Financials Driving the Market? https://www.localcollectorspost.org/ghitha-holding-pjsc-adxghitha-shares-are-on-an-uptrend-are-strong-financials-driving-the-market/ Thu, 10 Mar 2022 02:19:23 +0000 https://www.localcollectorspost.org/ghitha-holding-pjsc-adxghitha-shares-are-on-an-uptrend-are-strong-financials-driving-the-market/

Shares of Ghitha Holding PJSC (ADX:GHITHA) are up 116% in the past three months. Given the company’s impressive performance, we decided to take a closer look at its financial metrics, as a company’s long-term financial health usually dictates market outcomes. In particular, we will pay attention to the ROE of Ghitha Holding PJSC today.

ROE or return on equity is a useful tool for evaluating how effectively a company can generate returns on the investment it has received from its shareholders. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the company’s shareholders.

See our latest analysis for Ghitha Holding PJSC

How do you calculate return on equity?

the ROE formula East:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Ghitha Holding PJSC is:

15% = د.إ34m ÷ د.إ219m (Based on the last twelve months to September 2021).

The “yield” is the profit of the last twelve months. One way to conceptualize this is that for every AED1 of share capital it has, the company has made a profit of AED 0.15.

Why is ROE important for earnings growth?

We have already established that ROE serves as an effective profit-generating indicator for a company’s future earnings. We now need to assess how much profit the company is reinvesting or “retaining” for future growth, which then gives us an idea of ​​the company’s growth potential. Assuming all else is equal, companies that have both a higher return on equity and better earnings retention are generally the ones with a higher growth rate compared to companies that don’t. same characteristics.

A side-by-side comparison of Ghitha Holding PJSC’s earnings growth and 15% ROE

At first glance, there is not much to say about the ROE of Ghitha Holding PJSC. Although further investigation shows that the company’s ROE is above the industry average of 9.2%, which we certainly cannot ignore. This likely partly explains Ghitha Holding PJSC’s moderate growth of 9.4% over the past five years, among other factors. That being said, the company has a slightly weak ROE to start with, just that it’s above the industry average. Therefore, earnings growth could also be the result of other factors. For example, it is possible that the industry at large is going through a phase of strong growth or that the company has a low distribution rate.

Then, comparing with the net income growth of the industry, we found that the growth of Ghitha Holding PJSC is quite high compared to the industry average growth of 7.7% over the same period, which is great to have.

ADX: GHITHA Past Earnings Growth March 10, 2022

Earnings growth is an important metric to consider when evaluating a stock. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. By doing so, he will get an idea if the title is heading for clear blue waters or if swampy waters await. A good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings outlook. Thus, you may want to check whether Ghitha Holding PJSC is trading on a high P/E or a low P/E, relative to its industry.

Does Ghitha Holding PJSC effectively reinvest its profits?

Ghitha Holding PJSC does not currently pay any dividends, which basically means that it has reinvested all of its profits back into the business. This certainly contributes to the decent number of earnings growth we discussed above.

Conclusion

Overall, we are quite satisfied with the performance of Ghitha Holding PJSC. In particular, we appreciate the fact that the company reinvests heavily in its business at a moderate rate of return. Unsurprisingly, this led to impressive earnings growth. If the company continues to increase earnings as it has, it could have a positive impact on its share price given how earnings per share influence prices over the long term. Let’s not forget that business risk is also one of the factors that affect the stock price. This is therefore also an important area for investors to pay attention to before making a decision on a company. You can see the 2 risks we have identified for Ghitha Holding PJSC by visiting our risk dashboard for free on our platform here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
The fundamentals of Bittnet Systems SA (BVB:BNET) look quite solid: could the market be wrong about the stock? https://www.localcollectorspost.org/the-fundamentals-of-bittnet-systems-sa-bvbbnet-look-quite-solid-could-the-market-be-wrong-about-the-stock/ Tue, 08 Mar 2022 05:16:55 +0000 https://www.localcollectorspost.org/the-fundamentals-of-bittnet-systems-sa-bvbbnet-look-quite-solid-could-the-market-be-wrong-about-the-stock/

With its stock down 21% over the past month, it’s easy to overlook Bittnet Systems (BVB:BNET). But if you pay close attention, you might realize that its strong financials could mean the stock could potentially see a long-term rise in value, as the markets generally reward companies in good financial shape. In this article, we decided to focus on the ROE of Bittnet Systems.

Return on equity or ROE is an important factor for a shareholder to consider as it tells them how much of their capital is being reinvested. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the company’s shareholders.

See our latest analysis for Bittnet Systems

How to calculate return on equity?

the return on equity formula East:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the formula above, the ROE for Bittnet Systems is:

24% = 12m RON ÷ 49m RON (Based on the last twelve months to September 2021).

The “yield” is the profit of the last twelve months. This therefore means that for each RON1 of its shareholder’s investments, the company generates a profit of RON0.24.

What is the relationship between ROE and earnings growth?

We have already established that ROE serves as an effective profit-generating indicator for a company’s future earnings. Depending on how much of those earnings the company reinvests or “keeps”, and how efficiently it does so, we are then able to gauge a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and better earnings retention are generally the ones with a higher growth rate compared to companies that don’t. same characteristics.

A side-by-side comparison of Bittnet Systems’ earnings growth and 24% ROE

First, we recognize that Bittnet Systems has a significantly high ROE. Second, a comparison to the average industry-reported ROE of 16% also does not go unnoticed for us. This likely paved the way for the modest 12% net income growth seen by Bittnet Systems over the past five years. growth

Then, comparing Bittnet Systems’ net income growth with the industry, we found that the company’s reported growth is similar to the industry average growth rate of 14% over the same period.

BVB: BNET Past Earnings Growth March 8, 2022

The basis for attaching value to a company is, to a large extent, linked to the growth of its profits. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. This will help him determine if the future of the stock looks bright or ominous. A good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings outlook. So, you might want to check if Bittnet Systems is trading on a high P/E or a low P/E, relative to its industry.

Does Bittnet Systems effectively reinvest its profits?

Since Bittnet Systems does not pay any dividends to its shareholders, we infer that the company has reinvested all its profits to grow its business.

Summary

Overall, we feel that Bittnet Systems’ performance has been quite good. In particular, it is good to see that the company is investing heavily in its business, and together with a high rate of return, this has led to significant growth in its profits. If the company continues to increase its earnings as it has, it could have a positive impact on its share price given how earnings per share influence prices over the long term. Not to mention that stock price results also depend on the potential risks that a company may face. It is therefore important for investors to be aware of the risks associated with the business. To learn about the 4 risks we have identified for Bittnet Systems, visit our risk dashboard for free.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
SJVN Limited (NSE:SJVN) stock strengthens but fundamentals look weak: what implications could this have for the stock? https://www.localcollectorspost.org/sjvn-limited-nsesjvn-stock-strengthens-but-fundamentals-look-weak-what-implications-could-this-have-for-the-stock/ Fri, 04 Mar 2022 02:40:32 +0000 https://www.localcollectorspost.org/sjvn-limited-nsesjvn-stock-strengthens-but-fundamentals-look-weak-what-implications-could-this-have-for-the-stock/

Most readers already know that shares of SJVN (NSE:SJVN) are up a significant 6.2% over the past week. However, we have decided to pay close attention to its weak finances as we doubt the current momentum will continue given the scenario. In particular, we will be paying attention to SJVN’s ROE today.

ROE or return on equity is a useful tool for evaluating how effectively a company can generate returns on the investment it has received from its shareholders. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the company’s shareholders.

See our latest analysis for SJVN

How is ROE calculated?

the ROE formula East:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for SJVN is:

12% = ₹16 billion ÷ ₹134 billion (based on the last twelve months to December 2021).

“Yield” refers to a company’s earnings over the past year. This means that for every ₹1 of equity, the company generated ₹0.12 of profit.

Why is ROE important for earnings growth?

So far we have learned that ROE is a measure of a company’s profitability. We now need to assess how much profit the company is reinvesting or “retaining” for future growth, which then gives us an idea of ​​the company’s growth potential. Assuming everything else remains unchanged, the higher the ROE and earnings retention, the higher a company’s growth rate compared to companies that don’t necessarily exhibit these characteristics.

A side-by-side comparison of SJVN earnings growth and 12% ROE

At first glance, SJVN’s ROE does not look very promising. However, since the company’s ROE is similar to the industry average ROE of 12%, we can spare it some thought. We can see that SJVN grew at an average five-year net income growth rate of 2.8%, which is a bit lower. Keep in mind that the company’s ROE is not very high. Therefore, this provides some context to the weak earnings growth the company is seeing.

We then compared SJVN’s net income growth with the industry and found that the company’s growth figure is lower than the industry average growth rate of 13% over the same period, which is a little worrying.

NSEI: SJVN Past Earnings Growth March 4, 2022

Earnings growth is an important factor in stock valuation. It is important for an investor to know whether the market has priced in the expected growth (or decline) in the company’s earnings. By doing so, they will get an idea if the stock is headed for clear blue waters or if swampy waters are waiting. Has the market priced in SJVN’s future prospects? You can find out in our latest infographic research report on intrinsic value

Does SJVN effectively reinvest its profits?

With a high three-year median payout ratio of 55% (or a retention rate of 45%), most of SJVN’s earnings are paid out to shareholders. This certainly contributes to the weak earnings growth the company has seen.

Additionally, SJVN has paid dividends over a period of at least ten years, which means the company’s management is committed to paying dividends even if it means little or no earnings growth.

Summary

All in all, we would find it hard to think before deciding on any investment action regarding SJVN. The company has experienced a lack of earnings growth due to the fact that it retains very little profit and what little it retains is reinvested at a very low rate of return. In short, we believe the company is risky and investors should think twice before making a final judgment on this company. Our risk dashboard will contain the 1 risk we have identified for SJVN.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
Flat Glass Group Co., Ltd. (HKG:6865) The stock has shown weakness lately, but financials look solid: should potential shareholders take the plunge? https://www.localcollectorspost.org/flat-glass-group-co-ltd-hkg6865-the-stock-has-shown-weakness-lately-but-financials-look-solid-should-potential-shareholders-take-the-plunge/ Sun, 27 Feb 2022 02:13:36 +0000 https://www.localcollectorspost.org/flat-glass-group-co-ltd-hkg6865-the-stock-has-shown-weakness-lately-but-financials-look-solid-should-potential-shareholders-take-the-plunge/

With its stock down 8.7% over the past month, it’s easy to overlook Flat Glass Group (HKG: 6865). However, stock prices are usually determined by a company’s long-term financial performance, which in this case looks quite promising. In this article, we decided to focus on Flat Glass Group’s ROE.

Return on Equity or ROE is a test of how effectively a company increases its value and manages investors’ money. In simpler terms, it measures a company’s profitability relative to equity.

See our latest analysis for Flat Glass Group

How to calculate return on equity?

the return on equity formula East:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Flat Glass Group is:

22% = CN¥2.5b ÷ CN¥11b (Based on past twelve months to September 2021).

The “return” is the annual profit. So this means that for every HK$1 investment of its shareholder, the company generates a profit of HK$0.22.

What is the relationship between ROE and earnings growth?

So far, we have learned that ROE measures how efficiently a company generates its profits. We now need to assess how much profit the company is reinvesting or “retaining” for future growth, which then gives us an idea of ​​the company’s growth potential. Generally speaking, all things being equal, companies with high return on equity and earnings retention have a higher growth rate than companies that do not share these attributes.

Flat Glass Group profit growth and 22% ROE

For starters, Flat Glass Group has a pretty high ROE, which is interesting. Second, even when compared to the industry average of 10%, the company’s ROE is quite impressive. As a result, Flat Glass Group’s outstanding 39% net profit growth over the past five years comes as no surprise.

Then, comparing with the industry net income growth, we found that Flat Glass Group’s growth is quite high compared to the average industry growth of 21% over the same period, which is great to see.

SEHK: 6865 Past Earnings Growth Feb 27, 2022

Earnings growth is an important metric to consider when evaluating a stock. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. This then helps them determine whether the action is placed for a bright or bleak future. Is Flat Glass Group correctly valued compared to other companies? These 3 assessment metrics might help you decide.

Is Flat Glass Group effectively using its retained earnings?

Although the company has paid a portion of its dividend in the past, it currently does not pay any dividend. This is probably what explains the strong earnings growth discussed above.

Summary

Overall, we are quite satisfied with the performance of Flat Glass Group. Specifically, we like that the company reinvests a large portion of its earnings at a high rate of return. This of course caused the company to see substantial growth in profits. That said, the company’s earnings growth is expected to slow, as expected in current analyst estimates. Are these analyst expectations based on general industry expectations or company fundamentals? Click here to access our analyst forecast page for the company.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
Share of Shree Cement Limited (NSE:SHREECEM) fell but fundamentals look solid: is the market wrong? https://www.localcollectorspost.org/share-of-shree-cement-limited-nseshreecem-fell-but-fundamentals-look-solid-is-the-market-wrong/ Tue, 01 Feb 2022 02:09:11 +0000 https://www.localcollectorspost.org/share-of-shree-cement-limited-nseshreecem-fell-but-fundamentals-look-solid-is-the-market-wrong/

Shree Cement Inc (NSE: SHREECEM) had a tough three months with its share price down 16%. But if you pay close attention, you might realize that its strong financials could mean the stock could potentially see a long-term rise in value, as the markets generally reward companies in good financial shape. In particular, we will be paying attention to Shree Cement’s ROE today.

Return on Equity or ROE is a test of how effectively a company increases its value and manages investors’ money. In short, ROE shows the profit that each dollar generates in relation to the investments of its shareholders.

Check out our latest analysis for Shree Cement

How is ROE calculated?

the return on equity formula is:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for Shree Cement is:

16% = ₹26 billion ÷ ₹165 billion (based on the last twelve months to September 2021).

The “yield” is the amount earned after tax over the last twelve months. One way to conceptualize this is that for every ₹1 of share capital it has, the company has made a profit of ₹0.16.

What does ROE have to do with earnings growth?

So far we have learned that ROE is a measure of a company’s profitability. We now need to assess how much profit the company is reinvesting or “retaining” for future growth, which then gives us an idea of ​​the company’s growth potential. Generally speaking, all things being equal, companies with high return on equity and earnings retention have a higher growth rate than companies that do not share these attributes.

Shree Cement earnings growth and 16% ROE

For starters, Shree Cement seems to have a respectable ROE. Compared to the industry average ROE of 12%, the company’s ROE looks quite remarkable. It certainly adds some context to Shree Cement’s decent 19% net income growth over the past five years.

As a next step, we benchmarked Shree Cement’s net income growth with the industry and found that the company has a similar growth figure compared to the industry average growth rate of 20% over the past year. the same period.

NSEI: SHREECEM Past Earnings Growth February 1, 2022

Earnings growth is an important metric to consider when evaluating a stock. What investors then need to determine is whether the expected earnings growth, or lack thereof, is already priced into the stock price. This then helps them determine if the stock is positioned for a bright or bleak future. A good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings outlook. Thus, you might want to check whether Shree Cement is trading on a high P/E or a low P/E, relative to its industry.

Does Shree Cement effectively reinvest its profits?

In the case of Shree Cement, its respectable earnings growth can likely be explained by its low three-year median payout ratio of 13% (or a retention rate of 87%), suggesting that the company is investing the most of its profits to expand its business. .

Additionally, Shree Cement is committed to continuing to share its profits with shareholders, which we infer from its long history of paying dividends for at least ten years. Our latest analyst data shows that the company’s future payout ratio over the next three years is expected to be around 13%. As a result, forecasts suggest that Shree Cement’s future ROE will be 16%, which is again similar to today’s ROE.

Conclusion

All in all, we are quite satisfied with the performance of Shree Cement. In particular, we appreciate the fact that the company is reinvesting heavily in its business, and at a high rate of return. Unsurprisingly, this led to impressive earnings growth. That said, a study of the latest analyst forecasts shows that the company should see a slowdown in future earnings growth. To learn more about the latest analyst forecasts for the company, check out this analyst forecast visualization for the company.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
Is the weakness in shares of Radico Khaitan Limited (NSE:RADICO) a sign that the market could be wrong given its strong financial outlook? https://www.localcollectorspost.org/is-the-weakness-in-shares-of-radico-khaitan-limited-nseradico-a-sign-that-the-market-could-be-wrong-given-its-strong-financial-outlook/ Thu, 27 Jan 2022 02:02:31 +0000 https://www.localcollectorspost.org/is-the-weakness-in-shares-of-radico-khaitan-limited-nseradico-a-sign-that-the-market-could-be-wrong-given-its-strong-financial-outlook/

It’s hard to get excited after watching the recent performance of Radico Khaitan (NSE:RADICO), as its stock has fallen 4.8% over the past month. But if you pay close attention, you might realize that its strong financials could mean the stock could potentially see a long-term rise in value, as the markets generally reward companies in good financial shape. In particular, we will pay attention to the ROE of Radico Khaitan today.

Return on equity or ROE is an important factor for a shareholder to consider as it tells them how much of their capital is being reinvested. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the company’s shareholders.

Check out our latest analysis for Radico Khaitan

How do you calculate return on equity?

the ROE formula is:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE of Radico Khaitan is:

15% = ₹2.9 billion ÷ ₹19 billion (based on the last twelve months to September 2021).

The “yield” is the amount earned after tax over the last twelve months. This therefore means that for every ₹1 of its shareholder’s investment, the company generates a profit of ₹0.15.

What does ROE have to do with earnings growth?

So far we have learned that ROE is a measure of a company’s profitability. Depending on how much of its profits the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Generally speaking, all things being equal, companies with high return on equity and earnings retention have a higher growth rate than companies that do not share these attributes.

Radico Khaitan Earnings Growth and 15% ROE

For starters, Radico Khaitan’s ROE looks acceptable. And comparing with the industry, we found that the industry average ROE is similar at 15%. This likely partly explains Radico Khaitan’s significant 22% net income growth over the past five years, among other factors. However, there could also be other drivers behind this growth. For example, the business has a low payout ratio or is efficiently managed.

Then, comparing with the industry net income growth, we found that Radico Khaitan’s growth is quite high compared to the industry average growth of 9.4% over the same period, which which is great to see.

NSEI: RADICO Past Earnings Growth January 27, 2022

The basis for attaching value to a company is, to a large extent, linked to the growth of its profits. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. This then helps them determine whether the stock is set for a bright or bleak future. A good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings outlook. So, you might want to check if Radico Khaitan is trading on a high P/E or a low P/E, relative to its industry.

Does Radico Khaitan effectively reinvest its profits?

Radico Khaitan’s three-year median payout ratio is below 11%, meaning it retains a higher percentage (89%) of its earnings. So it looks like management is massively reinvesting earnings to grow their business, which is reflected in their earnings growth.

Moreover, Radico Khaitan has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.

Summary

Overall, we’re pretty happy with Radico Khaitan’s performance. In particular, it is good to see that the company is investing heavily in its business, and together with a high rate of return, this has led to significant growth in its profits. If the company continues to increase its earnings as it has, it could have a positive impact on its share price given how earnings per share influence prices over the long term. Not to mention that stock price results also depend on the potential risks a company may face. It is therefore important for investors to be aware of the risks associated with the business. You can see the 1 risk we have identified for Radico Khaitan by consulting our risk dashboard for free on our platform here.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
Is the strong financial outlook the driving force behind BioDelivery Sciences International, Inc. stock (NASDAQ:BDSI)? https://www.localcollectorspost.org/is-the-strong-financial-outlook-the-driving-force-behind-biodelivery-sciences-international-inc-stock-nasdaqbdsi/ Tue, 25 Jan 2022 10:35:10 +0000 https://www.localcollectorspost.org/is-the-strong-financial-outlook-the-driving-force-behind-biodelivery-sciences-international-inc-stock-nasdaqbdsi/

BioDelivery Sciences International Inc (NASDAQ:BDSI) has had a strong run in the stock market, with its stock rising 23% over the past week. Given the company’s impressive performance, we decided to take a closer look at its financial metrics, as a company’s long-term financial health usually dictates market outcomes. In particular, we will pay attention to the ROE of BioDelivery Sciences International today.

ROE or return on equity is a useful tool for evaluating how effectively a company can generate returns on the investment it has received from its shareholders. In short, ROE shows the profit that each dollar generates in relation to the investments of its shareholders.

See our latest analysis for BioDelivery Sciences International

How to calculate return on equity?

the ROE formula is:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for BioDelivery Sciences International is:

25% = $31 million ÷ $123 million (based on trailing 12 months to September 2021).

The “yield” is the profit of the last twelve months. Another way to think about this is that for every dollar of equity, the company was able to make $0.25 in profit.

What does ROE have to do with earnings growth?

We have already established that ROE serves as an effective profit-generating indicator for a company’s future earnings. We now need to assess how much profit the company is reinvesting or “retaining” for future growth, which then gives us an idea of ​​the company’s growth potential. Assuming all else is equal, companies that have both a higher return on equity and better earnings retention are generally the ones with a higher growth rate compared to companies that don’t. same characteristics.

A side-by-side comparison of BioDelivery Sciences International’s 25% profit and ROE growth

First of all, we appreciate the fact that BioDelivery Sciences International has an impressive ROE. Additionally, the company’s ROE is above the industry average of 17%, which is quite remarkable. Under these circumstances, a considerable growth in the five-year net profit of 45% of BioDelivery Sciences International was to be expected.

Then, comparing with the industry net income growth, we found that the growth of BioDelivery Sciences International is quite high compared to the average industry growth of 15% over the same period, which is great to see.

NasdaqGS: BDSI Past Earnings Growth January 25, 2022

Earnings growth is an important factor in stock valuation. It is important for an investor to know whether the market has priced in the expected growth (or decline) in the company’s earnings. This will help them determine if the future of the title looks bright or ominous. If you’re wondering about the valuation of BioDelivery Sciences International, check out this indicator of its price/earnings ratio, relative to its sector.

Is BioDelivery Sciences International using its profits effectively?

BioDelivery Sciences International currently pays no dividends, which essentially means that it has reinvested all of its profits back into the business. This certainly contributes to the high earnings growth number we discussed above.

Conclusion

Overall, we believe that BioDelivery Sciences International’s performance has been quite good. Specifically, we like that the company reinvests a large portion of its earnings at a high rate of return. This of course caused the company to see substantial growth in profits. That said, a study of the latest analyst forecasts shows that the company should see a slowdown in future earnings growth. To learn more about the latest analyst forecasts for the company, check out this analyst forecast visualization for the company.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
Siemens Aktiengesellschaft (ETR:SIE) fundamentals look pretty solid: Could the market be wrong about the stock? https://www.localcollectorspost.org/siemens-aktiengesellschaft-etrsie-fundamentals-look-pretty-solid-could-the-market-be-wrong-about-the-stock/ Thu, 20 Jan 2022 06:33:12 +0000 https://www.localcollectorspost.org/siemens-aktiengesellschaft-etrsie-fundamentals-look-pretty-solid-could-the-market-be-wrong-about-the-stock/

With its stock down 5.2% over the past week, it’s easy to overlook Siemens (ETR:SIE). However, the company’s fundamentals look pretty decent and long-term financials are generally in line with future market price movements. In this article, we decided to focus on the ROE of Siemens.

Return on equity or ROE is an important factor for a shareholder to consider as it tells them how much of their capital is being reinvested. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the company’s shareholders.

Discover our latest analysis for Siemens

How to calculate return on equity?

Return on equity can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the formula above, the ROE for Siemens is:

11% = €5.6 billion ÷ €49 billion (based on the last twelve months until September 2021).

The “yield” is the profit of the last twelve months. Another way to think about this is that for every $1 of equity, the company was able to make a profit of $0.11.

What does ROE have to do with earnings growth?

So far, we have learned that ROE measures how efficiently a company generates its profits. Depending on how much of its profits the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and earnings retention, the higher a company’s growth rate compared to companies that don’t necessarily exhibit these characteristics.

Siemens earnings growth and ROE of 11%

At first glance, Siemens seems to have a decent ROE. Additionally, the company’s ROE compares quite favorably to the industry average of 5.9%. Needless to say, we’re quite surprised to see Siemens’ net profit down 6.4% over the past five years. We believe there could be other factors at play here that are preventing the company from growing. These include poor revenue retention or poor capital allocation.

Next, we compared Siemens’ performance to that of the industry and found that the industry reduced its profits by 11% over the same period, suggesting that the company’s profits declined to a slower pace than its industry. While it’s not particularly good, it’s not particularly bad either.

XTRA: SIE Past Earnings Growth January 20, 2022

Earnings growth is an important metric to consider when evaluating a stock. What investors then need to determine is whether the expected earnings growth, or lack thereof, is already priced into the stock price. This then helps them determine if the stock is positioned for a bright or bleak future. What is SIE worth today? The intrinsic value infographic in our free research report helps visualize whether SIE is currently being mispriced by the market.

Is Siemens using its profits efficiently?

With a high three-year median payout ratio of 68% (implying that 32% of profits are retained), most of Siemens’ profits are paid out to shareholders, which explains the company’s declining profits. With only a small portion reinvested in the business, earnings growth would obviously be weak or non-existent.

Additionally, Siemens has been paying dividends for at least a decade or more, suggesting that management must have perceived that shareholders preferred dividends to earnings growth. Our latest analyst data shows that the company’s future payout ratio is expected to drop to 47% over the next three years. The fact that the company’s ROE is expected to be 14% over the same period is explained by the drop in the payout ratio.

Summary

Overall, we think Siemens certainly has some positives to consider. However, although the company has a high ROE, its earnings growth figure is quite disappointing. This can be attributed to the fact that it only reinvests a small portion of its profits and pays out the rest as dividends. That said, we have studied the latest analyst forecasts and found that although the company has decreased earnings in the past, analysts expect earnings to increase in the future. To learn more about the latest analyst forecasts for the company, check out this analyst forecast visualization for the company.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
Will the weakness in JK Cement Limited (NSE:JKCEMENT) shares prove temporary given the strong fundamentals? https://www.localcollectorspost.org/will-the-weakness-in-jk-cement-limited-nsejkcement-shares-prove-temporary-given-the-strong-fundamentals/ Sat, 15 Jan 2022 02:54:24 +0000 https://www.localcollectorspost.org/will-the-weakness-in-jk-cement-limited-nsejkcement-shares-prove-temporary-given-the-strong-fundamentals/

It’s hard to get excited after watching the recent performance of JK Cement (NSE:JKCEMENT), as its stock is down 1.2% over the past week. But if you pay close attention, you might realize that its strong financials could mean the stock could potentially see a long-term rise in value, as the markets generally reward companies in good financial shape. In this article, we decided to focus on the ROE of JK Cement.

Return on equity or ROE is a key metric used to gauge how effectively a company’s management is using the company’s capital. In short, ROE shows the profit that each dollar generates in relation to the investments of its shareholders.

See our latest review for JK Cement

How do you calculate return on equity?

Return on equity can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE for JK Cement is:

20% = ₹7.7 billion ÷ ₹39 billion (based on the last twelve months to September 2021).

The “yield” is the amount earned after tax over the last twelve months. One way to conceptualize this is that for every ₹1 of share capital it has, the company has made a profit of ₹0.20.

What is the relationship between ROE and earnings growth?

So far we have learned that ROE is a measure of a company’s profitability. Based on the share of its profits that the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Generally speaking, all things being equal, companies with high return on equity and earnings retention have a higher growth rate than companies that do not share these attributes.

JK Cement profit growth and 20% ROE

For starters, JK Cement’s ROE looks acceptable. Especially when compared to the industry average of 12%, the company’s ROE looks pretty impressive. Probably because of this, JK Cement has been able to see an impressive net profit growth of 30% over the past five years. We believe that there could also be other aspects that positively influence the company’s earnings growth. Such as – high revenue retention or effective management in place.

We then compared the net income growth of JK Cement with the industry and we are glad to see that the growth figure of the company is higher compared to the industry which has a growth rate of 20% in during the same period.

NSEI: JKCEMENT Past Earnings Growth January 15, 2022

Earnings growth is an important metric to consider when evaluating a stock. What investors then need to determine is whether the expected earnings growth, or lack thereof, is already priced into the stock price. By doing so, they will get an idea if the stock is headed for clear blue waters or if swampy waters are waiting. Is JK Cement correctly valued compared to other companies? These 3 assessment metrics might help you decide.

Does JK Cement effectively reinvest its profits?

JK Cement’s three-year median payout ratio to shareholders is 16%, which is quite low. This implies that the company retains 84% ​​of its profits. So it looks like JK Cement is massively reinvesting its profits to grow its business, which is reflected in its profit growth.

In addition, JK Cement is determined to continue sharing its profits with shareholders, which we infer from its long history of paying dividends for at least ten years. Based on the latest analyst estimates, we found that the company’s future payout ratio over the next three years is expected to remain stable at 15%. As a result, JK Cement’s ROE is not expected to change much either, which we inferred from analysts’ estimate of 21% for future ROE.

Summary

Overall, we believe JK Cement’s performance has been quite good. In particular, we appreciate the fact that the company is reinvesting heavily in its business, and at a high rate of return. Unsurprisingly, this led to impressive earnings growth. That said, the latest forecasts from industry analysts show that the company’s earnings growth is expected to slow. To learn more about the latest analyst forecasts for the company, check out this analyst forecast visualization for the company.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
ManTech International Corporation (NASDAQ: MANT) shares have experienced strong momentum: does this require further study of its financial outlook? https://www.localcollectorspost.org/mantech-international-corporation-nasdaq-mant-shares-have-experienced-strong-momentum-does-this-require-further-study-of-its-financial-outlook/ Sun, 09 Jan 2022 14:14:31 +0000 https://www.localcollectorspost.org/mantech-international-corporation-nasdaq-mant-shares-have-experienced-strong-momentum-does-this-require-further-study-of-its-financial-outlook/

[ad_1]

ManTech International (NASDAQ: MANT) stock rose 7.8% in the past month. As most know, fundamentals generally guide long-term market price movements, so we decided to look at the company’s key financial metrics today to see if they have a role to play in the recent one. price movement. Specifically, we have decided to study the ROE of ManTech International in this article.

Return on equity or ROE is a test of how effectively a company increases its value and manages investor money. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the shareholders of the company.

See our latest analysis for ManTech International

How to calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

Thus, based on the above formula, the ROE of ManTech International is:

8.4% = US $ 139 million ÷ US $ 1.7 billion (based on the last twelve months to September 2021).

“Return” refers to a company’s profits over the past year. One way to conceptualize this is that for every $ 1 of shareholder capital it has, the company has made $ 0.08 in profit.

Why is ROE important for profit growth?

So far, we’ve learned that ROE is a measure of a company’s profitability. We now need to assess the profits that the business is reinvesting or “withholding” for future growth, which then gives us an idea of ​​the growth potential of the business. Assuming everything else is equal, companies that have both a higher return on equity and higher profit retention are generally those that have a higher growth rate than companies that do not have the same characteristics.

ManTech International earnings growth and ROE of 8.4%

When you first watch it, ManTech International’s ROE doesn’t look so appealing. We then compared the company’s ROE to that of the industry as a whole and were disappointed to find that the ROE is 15% below the industry average. However, the moderate 15% net income growth observed by ManTech International over the past five years is certainly positive. We think there might be other factors at play here. Such as – high profit retention or effective management in place.

As a next step, we compared ManTech International’s net income growth with the industry and found that the company has a similar growth figure compared to the industry average growth rate of 15% over the past year. same period.

NasdaqGS: MANT Past Profit Growth January 9, 2022

The basis for attaching value to a business is, to a large extent, related to the growth of its profits. The investor should try to establish whether the expected growth or decline in earnings, as the case may be, is taken into account. In doing so, he’ll have an idea if the action is heading for clear blue waters or swampy waters ahead. Is MANT valued enough? This intrinsic business value infographic has everything you need to know.

Is ManTech International using its profits effectively?

ManTech International has a three-year median payout ratio of 43%, which means it keeps the remaining 57% of its profits. This suggests that its dividend is well hedged and, given the decent growth of the company, it appears that management is reinvesting its earnings in an efficient manner.

In addition, ManTech International has paid dividends over a period of at least ten years, which means the company is very serious about sharing its profits with its shareholders. After studying the latest consensus data from analysts, we found that the company is expected to continue to pay out around 51% of its profits over the next three years. As a result, ManTech International’s ROE is not expected to change much either, which we have deduced from analysts’ estimate of 7.6% for future ROE.

Summary

Overall, we think ManTech International certainly has some positive factors to consider. Despite its low rate of return, the fact that the company reinvested a very large portion of its profits back into its business has undoubtedly contributed to the strong profit growth. That said, looking at current analysts’ estimates, we were worried that while the company has increased profits in the past, analysts expect its profits to decline in the future. To learn more about the latest analyst forecast for the business, check out this visualization of the analyst forecast for the business.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

[ad_2]

]]>