It is hard to get excited after looking at Jiangxi JDL Environmental Protection's (SHSE:688057) recent performance, when its stock has declined 7.5% over the past week. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Jiangxi JDL Environmental Protection's ROE in this article.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
View our latest analysis for Jiangxi JDL Environmental Protection
How To Calculate Return On Equity?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Jiangxi JDL Environmental Protection is:
12% = CN¥389m ÷ CN¥3.3b (Based on the trailing twelve months to March 2022).
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.12.
What Has ROE Got To Do With 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 Jiangxi JDL Environmental Protection's Earnings Growth And 12% ROE
To begin with, Jiangxi JDL Environmental Protection seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.2%. This certainly adds some context to Jiangxi JDL Environmental Protection's exceptional 27% net income growth seen over the past five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
We then compared Jiangxi JDL Environmental Protection's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 14% in the same period.
SHSE:688057 Past Earnings Growth August 4th 2022
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is 688057 worth today? The intrinsic value infographic in our free research report helps visualize whether 688057 is currently mispriced by the market.
Is Jiangxi JDL Environmental Protection Making Efficient Use Of Its Profits?
The high three-year median payout ratio of 56% (implying that it keeps only 44% of profits) for Jiangxi JDL Environmental Protection suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders.
While Jiangxi JDL Environmental Protection has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend.
Summary
Overall, we are quite pleased with Jiangxi JDL Environmental Protection's performance. In particular, its high ROE is quite noteworthy and also the probable explanation behind its considerable earnings growth. Yet, the company is retaining a small portion of its profits. Which means that the company has been able to grow its earnings in spite of it, so that's not too bad. So far, we've only made a quick discussion around the company's earnings growth. You can do your own research on Jiangxi JDL Environmental Protection and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows.
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This article by Simply Wall St is general in nature. 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. 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 aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
看到江西京东环保(上海证券交易所股票代码:688057)最近的表现,很难感到兴奋,因为它的股票在过去一周里下跌了7.5%。然而,股价通常是由一家公司的长期财务表现推动的,在这种情况下,这看起来相当有希望。具体地说,我们决定在本文中研究江西京东环保的净资产收益率。
净资产收益率,即股本回报率,是评估一家公司从股东那里获得投资回报的有效程度的有用工具。简而言之,它衡量的是一家公司相对于股东权益的盈利能力。
查看我们对江西京东环保的最新分析
如何计算股本回报率?
这个净资产收益率公式是:
股本回报率=(持续经营的)净利润?股东权益
因此,根据上述公式,江西京东环保的净资产收益率为:
12%=3.89亿元×33亿元(以截至2022年3月的12个月为基础)。
“回报”指的是一家公司过去一年的收益。因此,这意味着股东每投资1元人民币,公司就会产生0.12元的利润。
净资产收益率与盈利增长有什么关系?
到目前为止,我们了解到净资产收益率是衡量一家公司盈利能力的指标。根据公司选择再投资或“保留”多少利润,我们就能够评估一家公司未来产生利润的能力。一般来说,在其他条件相同的情况下,股本回报率和利润留存较高的公司比不具备这些特征的公司有更高的增长率。
江西京东环保盈利增长与净资产收益率12%的并列比较
首先,江西京东环保似乎拥有令人尊敬的净资产收益率。此外,该公司的净资产收益率(ROE)与行业平均水平8.2%相比相当有利。这无疑为江西京东环保在过去五年中27%的净收入增长提供了一些背景。我们认为,可能还有其他因素在起作用。例如-高收益留存或有效的管理到位。
然后,我们将江西京东环保的净收入增长与行业进行了比较,我们很高兴地看到,与同期14%的行业增长率相比,该公司的增长数字更高。
上证所:过去688057的收益增长2022年8月4日
赋予一家公司价值的基础在很大程度上与其盈利增长挂钩。投资者应该尝试确定预期的收益增长或下降是否已计入价格,无论是哪种情况。通过这样做,他们将知道股票是将进入清澈的蓝色水域,还是等待沼泽水域。今天688057的价值是多少?我们免费研究报告中的内在价值信息图有助于直观地了解688057目前是否被市场错误定价。
江西京东环保是否高效利用利润?
江西京东环保的三年派息率中值为56%(这意味着它只保留了44%的利润),这表明尽管该公司将大部分收益返还给了股东,但该公司的增长并未受到真正的阻碍。
尽管江西京东环保的盈利有所增长,但它最近才开始派发股息。最有可能的是,该公司决定用股息给新股东和现有股东留下深刻印象。
摘要
总体而言,我们对江西京东环保的表现相当满意。特别是,其高净资产收益率相当值得注意,也是其可观收益增长背后的可能解释。然而,该公司保留了一小部分利润。这意味着,尽管如此,该公司仍能实现收益增长,所以这并不是太糟糕。到目前为止,我们只是围绕该公司的收益增长进行了简短的讨论。你可以自己研究江西京东环保,看看它在过去的表现如何,看看这个免费的详细图表过去的收益、收入和现金流。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。