Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. 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 provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. ![]() This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. This of course has caused the company to see substantial growth in its earnings. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. In total, we are pretty happy with ProPhase Labs' performance. Is ProPhase Labs Efficiently Re-investing Its Profits? Summary As a result, ProPhase Labs' exceptional 72% net income growth seen over the past five years, doesn't come as a surprise. Additionally, the company's ROE is higher compared to the industry average of 20% which is quite remarkable. ProPhase Labs' Earnings Growth And 29% ROEįirst thing first, we like that ProPhase Labs has an impressive ROE. 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. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. What Has ROE Got To Do With Earnings Growth? That means that for every $1 worth of shareholders' equity, the company generated $0.29 in profit. So, based on the above formula, the ROE for ProPhase Labs is:Ģ9% = US$18m ÷ US$64m (Based on the trailing twelve months to December 2022). Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity ![]() Return on equity can be calculated by using the formula: Put another way, it reveals the company's success at turning shareholder investments into profits.Ĭheck out our latest analysis for ProPhase Labs How Is ROE Calculated? Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. ![]() In this article, we decided to focus on ProPhase Labs' ROE. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Still, very rarely mistakes in copying or dividing chromosomes are made, and these mistakes can have negative consequences for cells and for people.It is hard to get excited after looking at ProPhase Labs' (NASDAQ:PRPH) recent performance, when its stock has declined 5.8% over the past three months. Fortunately, our cells have amazing systems to copy chromosomes almost perfectly and to make sure that one copy goes to each daughter cell. We need each of our cells to receive exactly one copy of each chromosome, and each copy needs to be perfect, no mistakes, or the cells may have trouble following the genetic instructions. Otherwise, we might not be able to follow the instructions and things could go wrong. We don't want to accidentally give one person two copies of page four and one person zero copies of page four. With our instruction manual example, it is really important that each person gets one copy of every page. In mitosis, a cell copies each chromosome, then gives one copy to each of two daughter cells. Copy each page, then give one copy to each of two people. We can think about mitosis like making a copy of an instruction manual.
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