Are Poor Financial Prospects Dragging Down Camden Property Trust (NYSE:CPT Stock?

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View photosCamden Property Trust (NYSE:CPT) has had a rough three months with its share price down 7.4%. Given that stock prices are usually driven by a company’s fundamentals over the long term, which in this case look pretty weak, we decided to study the company’s key financial indicators. In this article, we decided to focus on Camden Property Trust’s ROE.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 simpler terms, it measures the profitability of a company in relation to shareholder’s equity. See our latest analysis for Camden Property Trust How Do You Calculate Return On Equity?The formula for ROE is:Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ EquitySo, based on the above formula, the ROE for Camden Property Trust is:5.6% = US$203m ÷ US$3.6b (Based on the trailing twelve months to June 2020).The ‘return’ is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each $1 of shareholders’ capital it has, the company made $0.06 in profit.What Has ROE Got To Do With Earnings Growth?We have already established that …

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