--- title: "Declining Stock and Solid Fundamentals: Is The Market Wrong About PUMA SE (ETR:PUM)?" description: "PUMA SE's stock has declined 36% in three months, but its strong fundamentals suggest potential long-term value. The company's return on equity (ROE) stands at 12%, outperforming the industry average " type: "news" locale: "en" url: "https://longbridge.com/en/news/229310203.md" published_at: "2025-02-23T12:16:02.000Z" --- # Declining Stock and Solid Fundamentals: Is The Market Wrong About PUMA SE (ETR:PUM)? > PUMA SE's stock has declined 36% in three months, but its strong fundamentals suggest potential long-term value. The company's return on equity (ROE) stands at 12%, outperforming the industry average of 8.1%. PUMA has achieved a 12% growth in net income over five years, with a median payout ratio of 35%, indicating efficient reinvestment of profits. Analysts predict a future ROE of 16% and accelerating earnings growth, reflecting confidence in PUMA's financial health and investment strategy. It is hard to get excited after looking at PUMA's (ETR:PUM) recent performance, when its stock has declined 36% over the past three months. 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. Specifically, we decided to study PUMA's ROE in this article. 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 short, ROE shows the profit each dollar generates with respect to its shareholder investments. View our latest analysis for PUMA ## How Do You Calculate Return On Equity? **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 PUMA is: 12% = €320m ÷ €2.6b (Based on the trailing twelve months to September 2024). The 'return' refers to a company's earnings over the last year. That means that for every €1 worth of shareholders' equity, the company generated €0.12 in profit. ## What Is The Relationship Between ROE And Earnings Growth? 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. ## A Side By Side comparison of PUMA's Earnings Growth And 12% ROE To start with, PUMA's ROE looks acceptable. Especially when compared to the industry average of 8.1% the company's ROE looks pretty impressive. Probably as a result of this, PUMA was able to see a decent growth of 12% over the last five years. We then performed a comparison between PUMA's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 12% in the same 5-year period. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. Is PUMA fairly valued compared to other companies? These 3 valuation measures might help you decide. ## Is PUMA Efficiently Re-investing Its Profits? With a three-year median payout ratio of 35% (implying that the company retains 65% of its profits), it seems that PUMA is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Additionally, PUMA has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 39%. Regardless, the future ROE for PUMA is predicted to rise to 16% despite there being not much change expected in its payout ratio. ## Conclusion In total, we are pretty happy with PUMA's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. 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. ### Related Stocks - [PUM.DE - PUMA SE](https://longbridge.com/en/quote/PUM.DE.md) - [SLDB.US - Solid Biosciences](https://longbridge.com/en/quote/SLDB.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Puma Exploration 完成了將 Murray Brook West 項目出售給 Canadian Copper 的交易 | Puma Exploration Inc. 已經完成了其穆雷布魯克西項目的出售，買方為加拿大銅業公司，該公司現在持有該資產的 100% 權益。這筆交易是在兩家公司之間的選項協議下完成所有義務後進行的 | [Link](https://longbridge.com/en/news/275469723.md) | | 安踏斥 140 億購近 3 成 Puma 股權溢價 62% | 安踏（2020）今日宣佈將斥資 15.1 億歐元（約 140 億港元）收購德國運動品牌 Puma 近三成股份，成為其最大股東。此次收購以每股 35 歐元的價格進行，較 Puma 週一收市價溢價 62%。安踏表示，此舉是推進其「單聚焦、多品牌 | [Link](https://longbridge.com/en/news/273771920.md) | | 美國銀行目前持有 Puma SE 5.49% 的表決權 | 美國銀行公司現在持有 Puma SE 5.49% 的投票權，此信息是在變更後發佈的。該信息最初由 Puma SE 於 2026 年 2 月 10 日通過 EQS 新聞發佈 | [Link](https://longbridge.com/en/news/275423231.md) | | 高盛集團將其在 Puma SE 的總投票權降至 1.92% | 高盛集團已將其在彪馬公司的投票權從 4.99% 提高至 5.04%，上升了 0.05 個百分點。這一變化反映了他們在該公司股份的輕微增加 | [Link](https://longbridge.com/en/news/275567740.md) | | 高盛集團調整了 Puma SE 的總投票權 | 高盛集團已將其在彪馬公司的投票權從 4.63% 提高至 5.03%，增加了 0.40 個百分點。這一變化反映了他們在該公司股份的重大調整 | [Link](https://longbridge.com/en/news/275293976.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.