Financial Indicators – European Forum – Family Mediation http://europeanforum-familymediation.com/ Fri, 21 Jan 2022 00:44:42 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://europeanforum-familymediation.com/wp-content/uploads/2021/03/europenaforumfamilymediation-icon-70x70.png Financial Indicators – European Forum – Family Mediation http://europeanforum-familymediation.com/ 32 32 Does Brightcom Group Limited’s (NSE:BCG) latest stock performance reflect its financial health? https://europeanforum-familymediation.com/does-brightcom-group-limiteds-nsebcg-latest-stock-performance-reflect-its-financial-health/ Fri, 21 Jan 2022 00:30:11 +0000 https://europeanforum-familymediation.com/does-brightcom-group-limiteds-nsebcg-latest-stock-performance-reflect-its-financial-health/

Brightcom Group Inc (NSE:BCG) has had a strong run in the stock market, with its stock rising 155% 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. Specifically, we decided to study Brightcom Group’s ROE in this article.

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 simple terms, it is used to assess the profitability of a company in relation to its equity.

Check out our latest analysis for Brightcom Group

How do you calculate return on equity?

ROE can be calculated using the formula:

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

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

15% = ₹6.0 billion ÷ ₹39 billion (based on the last twelve months to September 2021).

“Yield” is the income the business has earned over the past year. One way to conceptualize this is that for every ₹1 of share capital it has, the company has made a profit of ₹0.15.

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. 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.

Brightcom Group Earnings Growth and ROE of 15%

For starters, Brightcom Group seems to have a respectable ROE. Additionally, the company’s ROE is similar to the industry average of 15%. Therefore, this likely laid the foundation for the decent 5.4% growth seen over the past five years by Brightcom Group.

As a next step, we benchmarked Brightcom Group’s net income growth against the industry and found that the company had a similar growth figure compared to the industry average growth rate of 5.4% over the same period. period.

NSEI: BCG Past Earnings Growth as of January 21, 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 then helps them determine if the stock is positioned for a bright or bleak future. Is Brightcom Group correctly rated against other companies? These 3 assessment metrics might help you decide.

Is the Brightcom Group effectively reinvesting its profits?

In Brightcom Group’s case, its respectable earnings growth is likely due to its low three-year median payout ratio of 0.5% (or a retention rate of 99%), suggesting that the company invests most of its profits to expand its business. .

Additionally, Brightcom Group paid dividends over a nine-year period. This shows that the company is committed to sharing profits with its shareholders.

Conclusion

Overall, we believe Brightcom Group’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. 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. Remember that the price of a stock also depends on the perceived risk. Therefore, investors should be aware of the risks involved before investing in a company. Our risk dashboard would contain the 3 risks we have identified for Brightcom Group.

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.

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Recent Share Performance of Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) Looks Decent – Can Strong Fundamentals Be the Reason? https://europeanforum-familymediation.com/recent-share-performance-of-crompton-greaves-consumer-electricals-limited-nsecrompton-looks-decent-can-strong-fundamentals-be-the-reason/ Wed, 19 Jan 2022 00:43:45 +0000 https://europeanforum-familymediation.com/recent-share-performance-of-crompton-greaves-consumer-electricals-limited-nsecrompton-looks-decent-can-strong-fundamentals-be-the-reason/

Most readers will already know that shares of Crompton Greaves Consumer Electricals (NSE:CROMPTON) are up 4.2% over the past month. Given its impressive performance, we decided to study the company’s key financial indicators, as a company’s long-term fundamentals usually dictate market outcomes. In particular, we’ll be paying attention to the ROE of Crompton Greaves Consumer Electricals 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 simple terms, it is used to assess the profitability of a company in relation to its equity.

Check out our latest analysis for Crompton Greaves Consumer Electricals

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 Crompton Greaves Consumer Electricals is:

32% = ₹6.5 billion ÷ ₹21 billion (based on trailing 12 months to September 2021).

The “yield” is the amount earned after tax over the last twelve months. Another way to think about this is that for every ₹1 worth of equity, the company was able to make a profit of ₹0.32.

What is the relationship between ROE and 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. 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.

Crompton Greaves Consumer Electricals profit growth and 32% ROE

For starters, Crompton Greaves Consumer Electricals has a pretty high ROE, which is interesting. Additionally, the company’s ROE is above the industry average of 11%, which is quite remarkable. This likely paved the way for the modest 18% net income growth seen by Crompton Greaves Consumer Electricals over the past five years. growth

In a next step, we compared the growth of Crompton Greaves Consumer Electricals net income with the industry, and fortunately, we found that the growth observed by the company is higher than the industry average growth of 7, 5%.

NSEI: CROMPTON Past Earnings Growth January 19, 2022

Earnings growth is an important metric to consider when evaluating a stock. 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 then helps them determine if the stock is positioned for a bright or bleak future. If you’re wondering about the valuation of Crompton Greaves Consumer Electricals, check out this indicator of its price/earnings ratio, relative to its sector.

Does Crompton Greaves Consumer Electricals use its profits efficiently?

Crompton Greaves Consumer Electricals has a healthy combination of a moderate three-year median payout ratio of 35% (or a 65% retention rate) and respectable earnings growth, as seen above , which means that the company has been efficient. the use of its profits.

In addition, Crompton Greaves Consumer Electricals paid dividends over a five-year period. This shows that the company is committed to sharing profits with its shareholders. Looking at current analyst consensus data, we can see that the company’s future payout ratio is expected to reach 47% over the next three years. However, the company’s ROE is not expected to change much despite the higher expected payout ratio.

Conclusion

Overall, we believe the performance of Crompton Greaves Consumer Electricals 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. The latest forecasts from industry analysts show that the company should maintain its current growth rate. For more on the company’s future earnings growth forecast, check out this free analyst forecast report for the company to learn more.

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.

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Microfluidic Immunoassay Market Report – Hunter Women’s Chronicle https://europeanforum-familymediation.com/microfluidic-immunoassay-market-report-hunter-womens-chronicle/ Mon, 17 Jan 2022 08:44:17 +0000 https://europeanforum-familymediation.com/microfluidic-immunoassay-market-report-hunter-womens-chronicle/

Reading time:2 minutes, 32 seconds

Although this report may seem very technical and difficult to skim through, you will quickly find that reading the Microfluidic Immunoassay Marke report is surprisingly simple. If you have an understanding of cross-sectional tables and can find what you need using a keyword search, reading this won’t seem too difficult either!

Click on the tab below to benefit from the sample copy of the report

Sample request

introduction

The microfluidic immunoassay market is expected to grow at a CAGR of 22.82% between 2016 and 2024. Continuous public interest in the application of healthcare applications in people is leading to the emergence of this continuously growing market space .

Description of the report

The immunoassay market is very dynamic and evolves according to advances in research and technology. However, despite recent fragmented regulatory innovation that has emerged across the globe, it can be difficult for manufacturers to achieve dominance in this space unless they exploit new opportunities due to widely dispersed segments. in various geographical areas.

Market analysis

In the report, six market patterns are examined in detail and a SWOT analysis is performed. The report provides case studies to provide insight into company profiles and presents key points for those interested in the overall market landscape.

industry transparency elements

To provide insights into the Immunoassays using Fluidic Microfluidics market, Macroaxis provides an industry transparency report. The five-page website report identifies business practices and financial indicators for companies involved in functional testing, such as antigen detection.

Click on the tab below for the instant purchase of the report with a flat rate discount of $500

Instant Buy Request

Microfluidic Immunoassay Market Key Players

KEY PLAYERS IN THE MICROFLUIDIC IMMUNOASSAY MARKET: Abbott Laboratories, Agilent Technologies, Beckman Coulter, Bio-Rad Laboratories, Cirius Technologies Inc., HB Fuller Company, Helsinki University Central Hospital, IIA Laboratory Equipment SA de CV and Molecular Imprints AB

Products and services offered by key players

This indicates the capacity of these companies and is based on figures provided by the companies in response to a questionnaire.

Summary of future prospects and tips for successfully attracting funding sources

Financing MEMS companies is becoming a huge challenge, and in many cases too much. In the past, start-ups had incredible chances of finding several sources of funding for their projects. Unfortunately, this era is coming to an end because it is much more difficult to make your project presentable and even more difficult to find high-level investors who are concerned about profitability over time. This is where newcomers must adapt to challenges created by experts to ensure they survive long enough to share their technology with the world.

Recommendations

The Microfluidic Immunoassay market report provides the market with an overview of players involved in this industry on a global scale, with the following three key sections:

Conclusion

The microfluidics market is expected to continue growing during the forecast period. In the microfluidic immunoassay market, RIA will lead, followed by ELISA and then EIA. However, each should grow.

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Does its finances have a role to play in Mercury Systems, Inc.’s (NASDAQ:MRCY) recent stock run? https://europeanforum-familymediation.com/does-its-finances-have-a-role-to-play-in-mercury-systems-inc-s-nasdaqmrcy-recent-stock-run/ Sat, 15 Jan 2022 14:48:45 +0000 https://europeanforum-familymediation.com/does-its-finances-have-a-role-to-play-in-mercury-systems-inc-s-nasdaqmrcy-recent-stock-run/

Most readers will already know that Mercury Systems (NASDAQ:MRCY) stock is up a significant 20% in the past three months. As most know, fundamentals are what generally guide market price movements over the long term, so we decided to take a look at key financial indicators in business today to see if they have a role to play. play in the recent price movement. In this article, we decided to focus on the ROE of Mercury 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 short, ROE shows the profit that each dollar generates in relation to the investments of its shareholders.

See our latest analysis for Mercury Systems

How is ROE calculated?

the ROE formula is:

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

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

2.6% = $39 million ÷ $1.5 billion (based on trailing 12 months to October 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 firm has made a profit of $0.03.

Why is ROE important for 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. 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.

Mercury Systems earnings growth and ROE of 2.6%

It’s hard to say that Mercury Systems’ ROE is very good on its own. Even compared to the industry average ROE of 13%, the company’s ROE is pretty dismal. Despite this, Mercury Systems has been able to grow its bottom line significantly, at a rate of 22% over the past five years. Therefore, there could be other reasons 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 Mercury Systems’ growth is quite high compared to the average industry growth of 12% over the same period, which is great to see.

NasdaqGS: MRCY Past Earnings Growth January 15, 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 then helps them determine if the stock is positioned for a bright or bleak future. Is the MRCY correctly valued? This intrinsic business value infographic has everything you need to know.

Does Mercury Systems effectively reinvest its profits?

Mercury Systems pays no dividends to its shareholders, which means the company has reinvested all of its profits back into the business. This is probably what explains the strong earnings growth discussed above.

Summary

All in all, it looks like Mercury Systems has positives for its business. Despite its low rate of return, the fact that the company reinvests a very large portion of its profits back into its business no doubt contributed to the strong growth in its profits. That said, looking at current analyst estimates, we found that the company’s earnings are expected to accelerate. For more on the company’s future earnings growth forecast, check out this free analyst forecast report for the company to learn more.

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.

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Is the recent performance of Atlas Pearls Limited (ASX:ATP) shares influenced by its fundamentals in any way? https://europeanforum-familymediation.com/is-the-recent-performance-of-atlas-pearls-limited-asxatp-shares-influenced-by-its-fundamentals-in-any-way/ Thu, 13 Jan 2022 20:55:41 +0000 https://europeanforum-familymediation.com/is-the-recent-performance-of-atlas-pearls-limited-asxatp-shares-influenced-by-its-fundamentals-in-any-way/

Atlas Pearls (ASX:ATP) stock is up 48% in the past three months. As most know, fundamentals are what generally guide market price movements over the long term, so we decided to take a look at key financial indicators in business today to see if they have a role to play. play in the recent price movement. Specifically, we decided to study the ROE of Atlas Pearls in this article.

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 simpler terms, it measures a company’s profitability relative to equity.

See our latest review for Atlas Pearls

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 Atlas Pearls is:

36% = AU$6.7 million ÷ AU$18 million (based on trailing 12 months to June 2021).

The “yield” is the amount earned after tax over the last twelve months. Another way to think about this is that for every 1 Australian dollar of equity, the company was able to make a profit of 0.36 Australian dollars.

What is the relationship between ROE and earnings growth?

So far we have learned that ROE is a measure of a company’s profitability. 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 Atlas Pearls Earnings Growth and 36% ROE

For starters, Atlas Pearls has a pretty high ROE, which is interesting. Second, a comparison to the average industry-reported ROE of 10% also does not go unnoticed for us. For this reason, Atlas Pearls’ 38% decline in net income over five years raises the question of why high ROE has not translated into earnings growth. Based on this, we believe that there might be other reasons which have not been discussed so far in this article which might hinder the growth of the business. These include poor revenue retention or poor capital allocation.

That being said, we compared the performance of Atlas Pearls with that of the industry and became concerned when we found that while the company had reduced profits, the industry had increased profits at a rate of 5 .9% over the same period.

ASX: ATP Past Earnings Growth January 13, 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. Thus, you might want to check whether Atlas Pearls is trading on a high P/E or a low P/E, relative to its industry.

Does Atlas Pearls effectively reinvest its profits?

Atlas Pearls pays no dividends, which means the company keeps all of its profits, which makes us wonder why it keeps its profits if it can’t use them to grow its business. So there could be other factors at play here that could potentially impede growth. For example, the company had to deal with headwinds.

Conclusion

All in all, it seems that Atlas Pearls has positive aspects for its business. However, we are disappointed to see a lack of earnings growth, even despite a high ROE and high reinvestment rate. We believe there could be external factors that could negatively impact the business. While we wouldn’t completely dismiss the business, what we would do is try to figure out how risky the business is to make a more informed decision about the business. To learn about the 3 risks we have identified for Atlas Pearls, 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.

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Thorne HealthTech stock: good potential at a low price (NASDAQ: THRN) https://europeanforum-familymediation.com/thorne-healthtech-stock-good-potential-at-a-low-price-nasdaq-thrn/ Tue, 11 Jan 2022 19:51:00 +0000 https://europeanforum-familymediation.com/thorne-healthtech-stock-good-potential-at-a-low-price-nasdaq-thrn/

anilakkus / iStock via Getty Images

Investment thesis

Today, Thorne HealthTech (NASDAQ: THRN) is trading below its initial public offering price. Considering the dynamics of financial indicators and the potential for growth, the company looks very cheap. The size and potential of the market provide the company with enormous room for growth. THRN is experiencing double digit growth and improving profitability. Despite the aggressive growth stage, the company is already generating free cash flow and a bottom line. According to our conservative valuation model, Thorne trades at a significant discount to its fair value. We rate stocks as a to buy.

Company Profile

Thorne HealthTech, Inc. offers various health tests, such as stress, sleep, weight management, heavy metals, biological age, gut health and other health tests for its customers, as well as developing nutritional supplements. Through the Onegevity platform, the company provides personalized information and data on the biological status of its customers and offers condition-based products to improve their health. The company operates in the B2C and B2B segments. The company makes about 13% of its revenue through a subscription model. The revenue structure is shown below:

Income distribution

Created by author

In September, Thorne sold 9 million common shares at a median price of $ 14 on the IPO. The company received approximately $ 126 million. THRN used $ 20 million to pay off all outstanding debts under the credit and guarantee agreement with Sumitomo Mitsui Banking Corporation. The rest of the money was used to develop the business.

Huge addressable market and good customer loyalty

In his last investor presentation, the company presented the valuation and dynamics of its addressable market based on the research of MarketsandMarkets, Bcc search, and Facts and Factors. The company’s TAM is estimated at $ 350 billion and is expected to grow at a CAGR of 9% over the next five years. The size and potential of the market provide the company with enormous room for growth.

TAM

Company presentation

Many consumers are skeptical of nutritional supplements. Indeed, the effectiveness of many of them can be questioned. THRN, on the other hand, works at the interface with medicine. Healthcare professionals, hospitals and athletes choose Thorne products. The company’s clients include names such as Unilever (NYSE: UL), Tetra Bio-Pharma (TSX: TBP), Kyowa, Ultimate Fighting Championship, NBA, and a Mayo Clinic University Medical Center. The retention rates of Healthcare Professionals are high and growing:

retention rate

Created by author, based on 10-K

While most of the revenue (60%) the company derives from B2B contracts, individuals also love THRN products. On Amazon, the customer Evaluation for nutritional supplements is 4.6 to 4.8. In the last in very good health evaluation, the company’s products have been recognized as the best for hormone control and the best for accuracy. The DTC segment also has good customer loyalty, with the share of subscription sales increasing from 29% to 31.5% in 9M 2020 and 2021, respectively. With its strong market positioning, we expect Thorne to benefit from a growing market.

Growing profitability

According to the 9-month 2021 results, THRN’s revenue increased 32.4% year-on-year to $ 135.4 million. At the same time, the gross margin increased by 7 percentage points and reached 53%. Despite the aggressive growth stage, Thorne is already a profitable business.

Graphic
Data by YCharts
Profitability and objectives

Company presentation

Despite the 3pp YoY drop in operating margin (due to abandonment of assets and loss of stake in unconsolidated subsidiaries), the company can easily meet its profitability target through its marketing efficiency . As a percentage of revenue, marketing spend is currently 15%, but THRN can easily reduce this expense since the customer’s lifetime value is 7.6 more than the customer’s acquisition cost.

LTV / CAC

Company presentation

If marketing effectiveness and costs as a percentage of revenue remain the same in the coming years, revenue will increase exponentially. This scenario is very likely because the indicator is rising and the market potential is huge.

Evaluation

Our model is conservative. Although management’s long-term revenue growth target is 30%, we expect the growth rate to slow down as early as 2022. Our profitability assumptions are roughly in line with current indicators and do not consider as the business becomes more profitable due to economies of scale. The terminal growth rate is 4%. Our assumptions are presented below:

Hypotheses

Created by author

With a cost of equity equal to 10%, the weighted average cost of capital [WACC] is 9.2%.

WACC

Created by author

With an EV / EBITDA terminal equal to 10.55x, the fair value of the company is $ 739 million or $ 14 per share. Thus, the company trades at a significant discount to its fair market value. The business is also inexpensive in terms of multiples. Despite double-digit revenue growth, THRN’s EV / Sales is 1.75x. Price / earnings / growth ratio [PEG] 0.15x.

Conclusion

The market oversold Thorne’s shares. The company is experiencing double-digit growth. It has a strong positioning and enormous market potential. Despite its aggressive growth, THRN is already a profitable business. We expect the business to continue to grow and improve profitability. Thorne trades at a significant discount to its fair value. We are very optimistic.

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Is the recent market performance of Sona BLW Precision Forgings Limited (NSE: SONACOMS) related to its strong fundamentals? https://europeanforum-familymediation.com/is-the-recent-market-performance-of-sona-blw-precision-forgings-limited-nse-sonacoms-related-to-its-strong-fundamentals/ Mon, 10 Jan 2022 02:15:23 +0000 https://europeanforum-familymediation.com/is-the-recent-market-performance-of-sona-blw-precision-forgings-limited-nse-sonacoms-related-to-its-strong-fundamentals/

Most readers already know that the stock of Sona BLW Precision Forgings (NSE: SONACOMS) has increased significantly by 13% 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 results. Specifically, we decided to study the ROE of Sona BLW Precision Forgings in this article.

Return on equity or ROE is a key measure used to assess the efficiency with which the management of a company uses company capital. In other words, it reveals the company’s success in turning shareholders’ investments into profits.

Check out our latest review for Sona BLW precision forgings

How is the ROE calculated?

ROE can be calculated using the formula:

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

So, based on the above formula, the ROE of Sona BLW Precision Forgings is:

18% = ₹ 3.1b ÷ ₹ 18b (Based on the last twelve months up to September 2021).

The “return” is the amount earned after tax over the past twelve months. So this means that for every 1 of its shareholder’s investments, the company generates a profit of ₹ 0.18.

What does ROE have to do with profit growth?

We have already established that ROE is an effective indicator of profit generation for a company’s future profits. Based on the portion 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. 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.

A side-by-side comparison of Sona BLW Precision Forgings profit growth and 18% ROE

For starters, the ROE of Sona BLW Precision Forgings seems acceptable. Especially compared to the industry average of 11%, the company’s ROE looks pretty impressive. It is probably because of this that Sona BLW Precision Forgings has been able to record an impressive growth in net income of 31% over the past five years. We believe that there could also be other aspects that positively influence the company’s profit growth. For example, it is possible that the management of the company has made good strategic decisions or that the company has a low payout ratio.

Considering that the industry cut its profits by 2.8% over the same period, the growth in the company’s net income is quite impressive.

NSEI: SONACOMS Growth in past profits on January 10, 2022

Profit growth is a huge factor in the valuation of stocks. 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 will have an idea if the action is heading for clear blue waters or swampy waters ahead. Is the value of Sona BLW Precision Forgings fair compared to other companies? These 3 evaluation measures could help you decide.

Is Sona BLW Precision Forgings Using Profits Effectively?

Although the company has paid part of its dividend in the past, it currently does not pay any dividends. This is probably what explains the high number of profit growth discussed above.

Summary

All in all, we are quite satisfied with the performance of Sona BLW Precision Forgings. In particular, it is great to see that the company is investing heavily in its business and with a high rate of return, which has resulted in significant growth in its profits. The latest forecasts from industry analysts show the company is expected to maintain its current growth rate. Are the expectations of these analysts based on general industry expectations or on company fundamentals? Click here to go to our business analyst forecasts page.

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.

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Is the poor financial outlook weighing on Compañía Cervecerías Unidas SA (SNSE: CCU Stock? https://europeanforum-familymediation.com/is-the-poor-financial-outlook-weighing-on-compania-cervecerias-unidas-sa-snse-ccu-stock/ Sat, 08 Jan 2022 13:09:43 +0000 https://europeanforum-familymediation.com/is-the-poor-financial-outlook-weighing-on-compania-cervecerias-unidas-sa-snse-ccu-stock/

With its stock down 3.5% over the past month, it’s easy to overlook Compañía Cervecerías Unidas (SNSE: CCU). Since stock prices are usually determined by a company’s long-term fundamentals, which in this case seem quite weak, we decided to study the key financial indicators of the company. In this article we have decided to focus on the ROE of Compañía Cervecerías Unidas.

Return on equity or ROE is an important factor for a shareholder to consider, as it tells them how effectively their capital is being reinvested. In simpler terms, it measures a company’s profitability relative to equity.

Check out our latest review for Compañía Cervecerías Unidas

How to calculate return on equity?

the return on equity formula is:

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

Thus, based on the above formula, the ROE of Compañía Cervecerías Unidas is:

13% = 200 billion Canadian dollars ÷ 1.5 tonnes of Canadian dollars (based on the last twelve months up to September 2021).

The “return” is the income the business has earned over the past year. This means that for every CLP1 value of equity, the company generated CLP 0.13 of profit.

Why is ROE important for profit growth?

We have already established that ROE is an effective indicator of profit generation for a company’s future profits. We now need to assess how much profit the company is reinvesting or “holding back” for future growth, which then gives us an idea of ​​the growth potential of the company. Assuming everything else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate than companies that do not have the same characteristics.

Profit growth of Compañía Cervecerías Unidas and 13% of ROE

At first glance, the ROE of the Compañía Cervecerías Unidas is not much to say. Still, further study shows that the company’s ROE is similar to the industry average of 12%. However, Compañía Cervecerías Unidas has seen flat growth in its net income over the past five years, which doesn’t mean much. Keep in mind that the company’s ROE is not particularly good to begin with. So this could also be one of the reasons for the company’s flat profit growth.

As a next step, we compared Compañía Cervecerías Unidas’ net income growth with that of the industry and found that the industry experienced an average growth of 8.8% over the same period.

SNSE: CCU Past profit growth on January 8, 2022

The basis for attaching value to a business is, to a large extent, related to the growth of its profits. It is important for an investor to know whether the market has factored in the expected growth (or decline) in company earnings. This then helps them determine whether the stock is set for a bright or dark future. If you are wondering about Compañía Cervecerías Unidas’ valuation, take a look at this gauge of its price / earnings ratio, relative to its industry.

Does Compañía Cervecerías Unidas use its retained earnings efficiently?

Compañía Cervecerías Unidas has a high three-year median payout rate of 75% (or retention rate of 25%), which means the company pays out most of its profits as dividends to its shareholders. This partly explains why there has been no growth in its profits.

Additionally, Compañía Cervecerías Unidas has been paying dividends for at least ten years or more, suggesting that management must have perceived that shareholders prefer dividends over earnings growth. Based on the latest analyst estimates, we found that the company’s future payout ratio over the next three years is expected to hold steady at 79%. Therefore, the company’s future ROE is also unlikely to change much, with analysts predicting an ROE of 14%.

Summary

Overall, we would be extremely careful before making a decision on Compañía Cervecerías Unidas. The company has experienced a lack of earnings growth due to keeping very little earnings and what little it keeps is being reinvested at a very low rate of return. That said, looking at current analysts’ estimates, we found that the company’s earnings growth rate is expected to see a huge improvement. Are the expectations of these analysts based on general industry expectations or on company fundamentals? Click here to go to our business analyst forecasts page.

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.

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Walgreens Boots Alliance, Inc. (NASDAQ: WBA) financial data is too obscure to relate to current stock price dynamics: What in store? https://europeanforum-familymediation.com/walgreens-boots-alliance-inc-nasdaq-wba-financial-data-is-too-obscure-to-relate-to-current-stock-price-dynamics-what-in-store/ Thu, 06 Jan 2022 13:16:10 +0000 https://europeanforum-familymediation.com/walgreens-boots-alliance-inc-nasdaq-wba-financial-data-is-too-obscure-to-relate-to-current-stock-price-dynamics-what-in-store/

Most readers already know that Walgreens Boots Alliance (NASDAQ: WBA) stock has risen significantly 13% in the past three months. But the company’s key financial metrics appear to differ across the board, leading us to question whether the current momentum in the company’s stock price can be sustained. In this article, we have decided to focus on the ROE of Walgreens Boots Alliance.

Return on equity or ROE is an important factor for a shareholder to consider, as it tells them how effectively their capital is being reinvested. In simpler terms, it measures a company’s profitability relative to equity.

Check out our latest review for Walgreens Boots Alliance

How to calculate return on equity?

the formula for ROE is:

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

So, based on the above formula, the ROE of Walgreens Boots Alliance is:

8.1% = US $ 2.0B ÷ US $ 24B (Based on the last twelve months to August 2021).

The “return” is the income the business has earned over the past year. This therefore means that for every $ 1 invested by its shareholder, the company generates a profit of $ 0.08.

What does ROE have to do with profit growth?

So far, we’ve learned that ROE measures how efficiently a business generates profits. Based on how much of those profits the company reinvests or “withholds” and its efficiency, we are then able to assess a company’s profit growth potential. Generally speaking, all other things being equal, companies with high return on equity and high profit retention have a higher growth rate than companies that do not share these attributes.

Walgreens Boots Alliance Earnings Growth and ROE of 8.1%

At first glance, Walgreens Boots Alliance’s ROE doesn’t look very promising. Still, further study shows that the company’s ROE is similar to the industry average of 9.9%. But then again, Walgreens Boots Alliance’s five-year net income was down 25%. Keep in mind that the business has a slightly low ROE. Hence, lower income could also be the result of this.

So, in the next step, we compared the performance of Walgreens Boots Alliance to that of the industry and were disappointed to find that if the company reduced its profits, the industry increased its profits at a rate of 8. , 6% over the same period.

NasdaqGS: WBA Past Profit Growth January 6, 2022

The basis for attaching value to a business is, to a large extent, related to the growth of its profits. What investors next need to determine is whether the expected earnings growth, or lack thereof, is already built into the share price. This will help them determine whether the future of the stock looks bright or threatening. 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 whether Walgreens Boots Alliance is trading high P / E or low P / E, relative to its industry.

Is Walgreens Boots Alliance Reinvesting Profits Effectively?

Looking at its three-year median payout rate of 43% (or a retention rate of 57%) which is pretty normal, Walgreens Boots Alliance’s decline in earnings is rather disconcerting as one would expect to see good growth. when a company keeps a good portion of its profits. It seems that there could be other reasons for the lack in this regard. For example, the business could be in decline.

Additionally, Walgreens Boots Alliance has paid dividends over a period of at least ten years, which means the management of the company is committed to paying dividends even if it means little to no growth in earnings. Our latest analyst data shows the company’s future payout ratio over the next three years is expected to be around 39%. However, Walgreens Boots Alliance’s ROE is expected to increase to 17% although there is no expected change in its payout ratio.

Summary

All in all, we are a bit ambivalent about the performance of Walgreens Boots Alliance. Although the company has a high reinvestment rate, the low ROE means that all that reinvestment is not benefiting its investors and, moreover, it has a negative impact on profit growth. However, the latest forecast from industry analysts shows that analysts expect a significant improvement in the company’s earnings growth rate. 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.

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Does the impressive performance of Cousins ​​Properties Incorporated (NYSE: CUZ) stocks have something to do with its fundamentals? https://europeanforum-familymediation.com/does-the-impressive-performance-of-cousins-%e2%80%8b%e2%80%8bproperties-incorporated-nyse-cuz-stocks-have-something-to-do-with-its-fundamentals/ Tue, 04 Jan 2022 10:40:58 +0000 https://europeanforum-familymediation.com/does-the-impressive-performance-of-cousins-%e2%80%8b%e2%80%8bproperties-incorporated-nyse-cuz-stocks-have-something-to-do-with-its-fundamentals/

Cousins ​​Properties (NYSE: CUZ) stock rose 8.4% in the past month. Since stock prices are generally aligned with a company’s long-term financial performance, we decided to take a closer look at its financial metrics to see if they had a role to play in the recent price movement. . In this article, we have decided to focus on the ROE of Cousins ​​Properties.

Return on equity or ROE is a test of how effectively a company increases its value and manages investor money. In short, the ROE shows the profit that each dollar generates compared to the investments of its shareholders.

Check out our latest review for Cousins ​​Properties

How to calculate return on equity?

the formula for ROE is:

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

So, based on the above formula, the ROE of the Cousins ​​properties is:

2.7% = US $ 123 million ÷ US $ 4.5 billion (based on the last twelve months to September 2021).

The “return” is the income the business has earned over the past year. This means that for every dollar in shareholders’ equity, the company generated $ 0.03 in profit.

What does ROE have to do with profit growth?

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

A side-by-side comparison of Cousins ​​Properties profit growth and 2.7% ROE

It is quite clear that Cousins ​​Properties’ ROE is rather low. Not only that, even compared to the industry average of 6.6%, the company’s ROE is quite unremarkable. Cousins ​​Properties has still seen a decent net income growth of 11% over the past five years. We believe that there could be other aspects that positively influence the company’s profit growth. Such as – high profit retention or effective management in place.

Next, comparing with the industry net income growth, we found that the growth of Cousins ​​Properties is quite high compared to the industry average growth of 9.0% over the same period. , which is great to see.

NYSE: CUZ Past Profit Growth Jan 4, 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. This will help him determine if the future of the stock looks bright or worrisome. Is CUZ valued enough? This intrinsic business value infographic has everything you need to know.

Is Cousins ​​Properties Efficiently Reinvesting Its Profits?

Cousins ​​Properties 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.

Additionally, Cousins ​​Properties 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. Based on the latest analyst estimates, we found that the company’s future payout ratio over the next three years is expected to hold steady at 43%. Therefore, the company’s future ROE is also unlikely to change much, with analysts predicting an ROE of 3.0%.

Conclusion

Overall, we think Cousins ​​Properties has some positive attributes. With a high reinvestment rate, but low ROE, the company has managed to see considerable growth in profits. That said, the latest forecast from industry analysts shows that the company’s earnings growth is expected to slow. To learn more about the company’s future earnings growth forecast, take a look at this free analyst forecast report for the company to learn more.

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.

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