Is Harbour Energy plc's (LON:HBR) Stock Price Struggling As A Result Of Its Mixed Financials?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2024
0mins
Source: Yahoo Finance
- Harbour Energy's ROE Analysis: The article focuses on Harbour Energy's Return on Equity (ROE) to evaluate its financial performance.
- Calculating ROE: ROE is calculated as Net Profit divided by Shareholders' Equity, with Harbour Energy's ROE at 2.1% based on the trailing twelve months to December 2023.
- Relationship Between ROE and Earnings Growth: ROE measures profit efficiency, and higher ROE and profit retention indicate higher growth potential for a company.
- Comparison of Harbour Energy's Earnings Growth: Harbour Energy shows low ROE compared to industry average, leading to declining earnings over the past five years.
- Efficient Use of Profits: Despite normal payout ratios, Harbour Energy's declining earnings raise questions about reinvestment benefits and future growth predictions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
