Winton Land Limited's (NZSE:WIN) Has Performed Well But Fundamentals Look Varied: Is There A Clear Direction For The Stock?
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Winton Land is:
0.8% = NZ$4.0m ÷ NZ$518m (Based on the trailing twelve months to December 2024).
The 'return' is the profit over the last twelve months. So, this means that for every NZ$1 of its shareholder's investments, the company generates a profit of NZ$0.01.
Check out our latest analysis for Winton Land
So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
It is quite clear that Winton Land's ROE is rather low. Not just that, even compared to the industry average of 6.1%, the company's ROE is entirely unremarkable. Therefore, Winton Land's flat earnings over the past five years can possibly be explained by the low ROE amongst other factors.
Next, on comparing with the industry net income growth, we found that the industry grew its earnings by 9.9% over the last few years.
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. One 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 prospects. So, you may want to check if Winton Land is trading on a high P/E or a low P/E, relative to its industry.
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a regular dividend. We infer that the company has been reinvesting all of its profits to grow its business.
On the whole, we feel that the performance shown by Winton Land can be open to many interpretations. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Black Rock Coffee Bar initiates IPO process with SEC filing
US-based Black Rock Coffee Bar has filed a registration statement on Form S-1 with the US Securities and Exchange Commission (SEC) for a potential initial public offering (IPO) of its Class A common stock. The number of shares to be offered and their pricing details have not yet been established. The completion of the proposed offering is contingent upon market conditions, and there is uncertainty surrounding the timing and terms of the offering. Black Rock Coffee Bar plans to list its Class A common stock on the Nasdaq Global Market under the BRCB ticker symbol. JP Morgan, Morgan Stanley, and Jefferies and Baird will serve as lead book-running managers for the offering. Stifel and William Blair will act as additional book-running managers, while Raymond James will take on the role of lead manager. Although the registration statement has been submitted to the SEC, it has not yet been approved, meaning that the securities cannot be sold or offered for purchase until the registration becomes effective. Reuters has reported that Black Rock Coffee Bar's revenue increase exceeded 24% for the first half of 2025, as it looks to enter the IPO market. Previous reports suggested that the valuation of the coffee chain could exceed $1bn. Established in 2008 by Jeff Hernandez and Daniel Brand, Black Rock Coffee Bar has remained founder-owned, enabling greater operational control and reduced ownership dilution. As of 30 June 2025, Black Rock Coffee Bar operated 158 locations across seven US states. "Black Rock Coffee Bar initiates IPO process with SEC filing" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
an hour ago
- Associated Press
TerraQuip Drilling Equipment Announces Major Milestone with Over 100 Units Supplied Across Australia and New Zealand
TerraQuip Drilling Equipment reaches a key milestone, having successfully supplied over 100 units of IMT, Marini, and Klein rigs to contractors in Australia and New Zealand. Australia, August 20, 2025 -- TerraQuip Drilling Equipment Celebrates Growth and Expansion in Australia and New Zealand TerraQuip Drilling Equipment, a leading supplier of hydraulic piling rigs in Australia and New Zealand, has marked a significant milestone in its journey by surpassing 100 units of IMT, Marini, and Klein drilling rigs sold and serviced. This achievement underscores TerraQuip's rapid growth since its inception, positioning the company as a trusted partner for piling contractors in the region. Founded just seven years ago, TerraQuip began with almost no equipment in Australia. Today, the company is a key player in the market, providing contractors with a comprehensive range of high-quality drilling rigs and unmatched customer support. The company's growth is driven by its focus on offering not only top-tier equipment but also industry-leading service and support. Extensive Equipment Range and International Expertise At the core of TerraQuip's success is its exclusive partnership with leading manufacturers of drilling equipment, including IMT, Marini, and Klein Pumps. TerraQuip is the authorized dealer for these globally recognized brands across Australia and New Zealand, offering a range of equipment suited to various drilling needs, from compact piling rigs to hydraulic and rotary drilling rigs. IMT, known for its hydraulic piling rigs, maintains a strong presence in the US, Europe, and Asia. TerraQuip's collaboration with IMT allows the company to bring state-of-the-art equipment and technology to local contractors, ensuring access to efficient and high-performance machinery. This partnership, along with TerraQuip's tailored solutions, helps fill a critical gap in the Australian and New Zealand markets, where demand for reliable, high-quality equipment continues to grow. Industry-Leading Service and Support A key differentiator for TerraQuip is its commitment to service excellence. The company not only supplies high-quality equipment but also offers comprehensive support through factory-trained technicians who are well-versed in the demands of the drilling industry. TerraQuip's Service & Support team ensures that customers receive the best advice and after-sales service, making sure equipment is well-maintained and performs optimally over time. This attention to detail and focus on customer satisfaction has earned TerraQuip a reputation for reliability and expertise. The company offers ongoing training, technical support, and access to parts, ensuring contractors can trust TerraQuip to meet their needs long after the sale is complete. A Family-Owned Business Delivering Tailored Solutions As a family-owned business, TerraQuip prides itself on providing prompt, personalized service that's often not found in larger corporations. The company's experienced sales team works closely with contractors to identify the right equipment, whether for new or used machinery, ensuring that each client receives a solution that fits their specific project requirements. This commitment to customer service and tailored solutions is central to TerraQuip's philosophy. With over 100 units sold across three of the most respected brands in the industry, TerraQuip has proven itself to be a trusted partner for contractors seeking reliable equipment and unmatched service. Looking Ahead: Future Growth and Expansion With a growing fleet of IMT, Marini, and Klein rigs and an expanding customer base, TerraQuip Drilling Equipment is poised for further growth in Australia and New Zealand. The company remains dedicated to providing contractors with the best equipment and service in the industry. As the company looks to the future, it aims to continue expanding its offerings and providing innovative solutions that help contractors succeed. TerraQuip's success in the region is a testament to its ability to adapt and thrive in a competitive market. As the demand for high-quality drilling rigs continues to grow, TerraQuip's role as a reliable equipment supplier will only strengthen, ensuring that contractors across Australia and New Zealand have access to the tools they need to succeed. About TerraQuip Drilling Equipment TerraQuip Drilling Equipment is an Australian supplier of hydraulic piling rigs, rotary drilling rigs, and associated equipment. The company is the exclusive authorized dealer of IMT, Marini, and Klein Pumps, offering both new and used equipment sales. With a focus on service excellence and a customer-centric approach, TerraQuip provides tailored solutions to meet the specific needs of piling contractors across Australia and New Zealand. The company also offers industry-leading service and support, with factory-trained technicians available to ensure optimal equipment performance. Media Contact Mike Dobrota Founder, TerraQuip Drilling Equipment Email: [email protected] YouTube Instagram LinkedIn Facebook Contact Info: Name: Mike Dobrota Email: Send Email Organization: TerraQuip Drilling Equipment Website: Release ID: 89167776 If there are any deficiencies, discrepancies, or concerns regarding the information presented in this press release, we kindly request that you promptly inform us by contacting [email protected] (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our dedicated team is committed to addressing any identified issues within 8 hours to guarantee the delivery of accurate and reliable content to our esteemed readers.
Yahoo
an hour ago
- Yahoo
Buffett Effect Still Holds as UnitedHealth Soars Through August
(Bloomberg) -- The Warren Buffett effect is proving true once again, spurring UnitedHealth Group Inc.'s reversal this month and giving the Dow Jones Industrial Average a push toward its first closing high since last year. Buffett's Berkshire Hathaway revealed last week that it bought a stake in the health insurer in the second quarter. UnitedHealth shares, which lost more than 50% from the start of 2025 through the end of July, have been on a tear this month, rising more than 20% in August alone and far outperforming any other company in the blue-chip index during that stretch. Why New York City Has a Fleet of New EVs From a Dead Carmaker Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone Trump Takes Second Swing at Cutting Housing Assistance for Immigrants A Photographer's Pipe Dream: Capturing New York's Vast Water System A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome The stock has added more than 300 points to the Dow in August, accounting for more than 40% of its monthly gain. It has been a welcome boost for the stock-price-weighted benchmark, which hit an intraday record on Tuesday but has yet to close at a new all-time high and has been trounced by other major equity indexes, like the S&P 500 and Nasdaq 100, this year. 'There wasn't a single piece of good news basically this whole year specific to UnitedHealth,' Morningstar analyst Julie Utterback said. 'So having a company like Berkshire Hathaway investing competitively in a managed firm that was attractively valued, that's really a nice vote of confidence.' NOTE: Aug. 15, UnitedHealth Surges After Buffett, Tepper Bet on Turnaround (2) The 'Buffett Effect' essentially refers to a stock market phenomenon where share prices rise when the legendary investor takes a stake and fall when he exits a position. In this case it's notable because until very recently UnitedHealth was the biggest drag on the Dow this year. Then it reversed direction and quickly went from worst to first. 'Really Tough Year' 'Investors in UnitedHealth have had a really tough year,' said Utterback, who tracks the stock's decline to early December, when former executive Brian Thompson was fatally shot outside an investor conference in New York. The stock is still down 40% in 2025 and is trading at a little more than $300. Utterback has a buy rating and $400 price target on the shares. Thompson's murder, which was a targeted attack aimed at UnitedHealth's leadership, helped send the Dow on its longest losing streak since the 1970s. At the same time, the insurer's stock fell from the biggest weight in the 30-member index to seventh. But since the Berkshire Hathaway stake was revealed after the market closed on Aug. 14, Wall Street has turned incrementally positive on UnitedHealth. And more broadly, investors are starting to see some momentum from the entire health-care sector. Jonathan Krinsky, chief market technician at BTIG, says he's 'sticking with health care for a more defensive posture' and because it's the best-performing sector in the market in August.A As for UnitedHealth, it may be more attractive as a longer-term position. 'If you can take a five-year view (on UnitedHealth), you likely will do well,' analysts at BofA Securities wrote in a note to clients on Monday that was subtitled 'Berkshire is in, should you be?' The bank raised also its price target on the stock to $325 from $290. And when it comes to dragging the Dow to a new closing high, the company still needs some help. 'The rest of the stocks still need to be able to rally,' said Matt Maley, chief market strategist at Miller Tabak + Co., though he added that removing the biggest drag on the index is a positive sign. 'The DJIA is something the individual investor watches more closely than the pros.' Foreigners Are Buying US Homes Again While Americans Get Sidelined What Declining Cardboard Box Sales Tell Us About the US Economy Women's Earnings Never Really Recover After They Have Children Survived Bankruptcy. Next Up: Cultural Relevance? Americans Are Getting Priced Out of Homeownership at Record Rates ©2025 Bloomberg L.P.
