Hubei Mailyard ShareLtd's (SHSE:600107) stock is up by a considerable 42% over the past three months. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to Hubei Mailyard ShareLtd's ROE today.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
Check out our latest analysis for Hubei Mailyard ShareLtd
How Do You Calculate Return On Equity?
Return on equity 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 Hubei Mailyard ShareLtd is:
2.4% = CN¥19m ÷ CN¥789m (Based on the trailing twelve months to March 2022).
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.02 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
Hubei Mailyard ShareLtd's Earnings Growth And 2.4% ROE
It is hard to argue that Hubei Mailyard ShareLtd's ROE is much good in and of itself. Even compared to the average industry ROE of 8.4%, the company's ROE is quite dismal. However, we we're pleasantly surprised to see that Hubei Mailyard ShareLtd grew its net income at a significant rate of 42% in the last five years. We believe that there might be other aspects that are positively influencing the company's 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.
As a next step, we compared Hubei Mailyard ShareLtd's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 4.9%.
SHSE:600107 Past Earnings Growth August 16th 2022
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is Hubei Mailyard ShareLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Hubei Mailyard ShareLtd Making Efficient Use Of Its Profits?
Given that Hubei Mailyard ShareLtd doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
Conclusion
On the whole, we do feel that Hubei Mailyard ShareLtd has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. You can see the 1 risk we have identified for Hubei Mailyard ShareLtd by visiting our risks dashboard for free on our platform here.
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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.
湖北邮品股份有限公司(上海证券交易所股票代码：600107)的股票在过去三个月里上涨了42%。正如大多数人都知道的那样，基本面因素通常是长期市场价格走势的指引，因此我们决定今天查看该公司的关键财务指标，以确定它们是否对最近的价格走势起到了作用。今天，我们将特别关注湖北邮品股份有限公司的净资产收益率。
股本回报率或净资产收益率是股东要考虑的一个重要因素，因为它告诉他们他们的资本再投资的效率。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。
查看我们对湖北邮电股份有限公司的最新分析
你如何计算股本回报率？
股本回报率可使用以下公式计算：
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，湖北邮电股份有限公司的净资产收益率为：
2.4%=CN元1900万×CN元7.89亿元(以截至2022年3月的12个月为基础)。
“报税表”是过去12个月的税后收入。一种概念化的方法是，公司每拥有1元人民币的股东资本，就会获得0.02元人民币的利润。
为什么净资产收益率对收益增长很重要？
到目前为止，我们已经了解到净资产收益率衡量的是一家公司创造利润的效率。根据公司将这些利润再投资或“保留”多少，以及这样做的效率如何，我们就能够评估一家公司的收益增长潜力。假设其他条件相同，与没有相同特征的公司相比，拥有更高股本回报率和更高利润保留率的公司通常会有更高的增长率。
湖北迈亚股份有限公司盈利增长和2.4%的净资产收益率
很难说湖北邮电股份有限公司的净资产收益率本身就很好。即使与8.4%的行业平均净资产收益率相比，该公司的净资产收益率也相当惨淡。然而，令人惊喜的是，我们看到湖北邮品股份有限公司在过去五年中净收入以42%的显著速度增长。我们认为，可能还有其他方面正在积极影响公司的收益增长。例如，公司管理层可能做出了一些良好的战略决策，或者公司的派息率较低。
下一步，我们将湖北邮电股份有限公司的净收入增长与行业进行了比较，令人欣喜的是，我们发现该公司看到的增长高于行业平均4.9%的增长。
上海证券交易所：过去600107的收益增长2022年8月16日
盈利增长是股票估值的一个重要因素。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。这有助于他们确定这只股票是为光明还是黯淡的未来做准备。与其他公司相比，湖北邮电股份有限公司的价值是否公平？这3个估值指标可能会帮助你做出决定。
湖北邮电股份有限公司是否有效利用了其利润？
鉴于湖北邮电股份有限公司不向股东支付任何股息，我们推断该公司一直在将所有利润再投资于业务增长。
结论
总体而言，我们确实觉得湖北邮电股份有限公司有一些积极的属性。尽管回报率很低，但由于对业务进行了大量再投资，该公司实现了令人印象深刻的收益增长。虽然我们不会完全解雇这家公司，但我们要做的是努力确定这项业务在公司周围做出更明智的决定的风险有多大。您可以通过访问我们的风险控制面板在我们的平台上是免费的。
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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。
