![]() Johanson was the Senior Vice President, Gulf Region, for the Company. Simonelli will oversee the transition and continue to serve the Company as a consultant following his retirement. Simonelli, who is retiring on September 16, 2022. These two positions will fill the roles currently held by the Company’s Chief Operating Officer, David E. to the position of SVP, Project Services & Fleet Engineering. You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself.HOUSTON, J(GLOBE NEWSWIRE) - Great Lakes Dredge & Dock Corporation (“Great Lakes” or the “Company”) (NASDAQ:GLDD), the largest provider of dredging services in the United States, today announced the appointments, effective August 1, 2022, of David Johanson to the position of SVP, Project Acquisition & Operations, and of Christopher G. Simply Wall St has no position in any stocks mentioned. 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. #Great lakes dredge for free#You can see the 2 risks we have identified for Great Lakes Dredge & Dock by visiting our risks dashboard for free on our platform here. Therefore investors must keep themselves informed about the risks involved before investing in any company. ![]() Remember, the price of a stock is also dependent on the perceived risk. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. 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 Great Lakes Dredge & Dock's performance. This is likely what's driving the high earnings growth number discussed above. Great Lakes Dredge & Dock doesn't pay any dividend to its shareholders, meaning that the company has been reinvesting all of its profits into the business. Is Great Lakes Dredge & Dock Making Efficient Use Of Its Profits? If you're wondering about Great Lakes Dredge & Dock's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. This then helps them determine if the stock is placed for a bright or bleak future. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. ![]() We reckon that there could also be other factors at play here. This probably goes some way in explaining Great Lakes Dredge & Dock's significant 40% net income growth over the past five years amongst other factors. ![]() Even when compared to the industry average of 9.7% the company's ROE looks quite decent. To begin with, Great Lakes Dredge & Dock seems to have a respectable ROE. Great Lakes Dredge & Dock's Earnings Growth And 11% 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. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Why Is ROE Important For Earnings Growth? One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.11 in profit. So, based on the above formula, the ROE for Great Lakes Dredge & Dock is:ġ1% = US$46m ÷ US$412m (Based on the trailing twelve months to June 2022). Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity ![]()
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