A lackluster earnings announcement from Raffles Education Corporation Limited (SGX:NR7) last week didn't sink the stock price. We think that investors are worried about some weaknesses underlying the earnings.
View our latest analysis for Raffles Education
SGX:NR7 Earnings and Revenue History August 30th 2022
The Impact Of Unusual Items On Profit
Importantly, our data indicates that Raffles Education's profit received a boost of S$47m in unusual items, over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. Raffles Education had a rather significant contribution from unusual items relative to its profit to June 2022. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Raffles Education.
Our Take On Raffles Education's Profit Performance
As previously mentioned, Raffles Education's large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. As a result, we think it may well be the case that Raffles Education's underlying earnings power is lower than its statutory profit. Sadly, its EPS was down over the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you'd like to know more about Raffles Education as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 3 warning signs for Raffles Education and we think they deserve your attention.
Today we've zoomed in on a single data point to better understand the nature of Raffles Education's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
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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.
一份乏善可陈的财报公告 莱佛士教育有限公司 (SGX: NR7) 上周股价没有下跌。我们认为,投资者担心收益背后的一些弱点。
查看我们对莱佛士教育的最新分析
新加坡证券交易所:NR7 收益和收入记录 2022 年 8 月 30 日
不寻常物品对利润的影响
重要的是,我们的数据表明,与去年相比,莱佛士教育的非同寻常项目利润增加了4700万新元。虽然获得更高的利润总是一件好事,但来自不寻常物品的巨额捐款有时会抑制我们的热情。我们计算了全球大多数上市公司的数字,不寻常的物品本质上是一次性的,这种情况很常见。这正如你所预料的那样,因为这些提升被描述为 “不寻常”。相对于截至2022年6月的利润,莱佛士教育从不寻常的项目中做出了相当大的贡献。在其他条件相同的情况下,这可能会使法定利润成为基础收益能力的糟糕指南。
注意: 我们始终建议投资者检查资产负债表的强度。点击此处查看我们对莱佛士教育的资产负债表分析。
我们对莱佛士教育盈利表现的看法
如前所述,莱佛士教育从不寻常项目中获得的巨大提振不会无限期地存在,因此其法定收益可能无法很好地指导其基本盈利能力。因此,我们认为莱佛士教育的基础盈利能力很可能低于其法定利润。遗憾的是,其每股收益在过去十二个月中有所下降。当然,在分析其收益时,我们只是浮出水面;人们还可以考虑利润率、预测增长和投资回报率等因素。如果您想进一步了解莱佛士教育作为一家企业,了解其面临的任何风险非常重要。在 Simply Wall St,我们发现 莱佛士教育的 3 个警告标志 我们认为它们值得您的关注。
今天,我们放大了单个数据点,以更好地了解莱佛士教育的利润性质。但是,如果你能够将注意力集中在细节上,总会有更多东西需要发现。有些人认为高股本回报率是优质业务的好兆头。所以你可能希望看到这个 免费的 一系列拥有高股本回报率的公司,或者这份内部人士正在买入的股票清单。
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Simply Wall St 的这篇文章本质上是一般性的。 我们仅使用不偏不倚的方法根据历史数据和分析师预测提供评论,我们的文章并非旨在提供财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能未将最新的价格敏感型公司公告或定性材料考虑在内。简而言之,华尔街对上述任何股票都没有头寸。