Lingyi iTech (Guangdong) (SZSE:002600) has had a rough three months with its share price down 8.2%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Lingyi iTech (Guangdong)'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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
View our latest analysis for Lingyi iTech (Guangdong)
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 Lingyi iTech (Guangdong) is:
7.7% = CN¥1.3b ÷ CN¥16b (Based on the trailing twelve months to June 2022).
The 'return' is the profit over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.08.
What Is The Relationship Between ROE And Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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 Lingyi iTech (Guangdong)'s Earnings Growth And 7.7% ROE
On the face of it, Lingyi iTech (Guangdong)'s ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 9.0%. On the other hand, Lingyi iTech (Guangdong) reported a moderate 17% net income growth over the past five years. Considering the moderately low ROE, it is quite possible that there might be some 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.
Next, on comparing Lingyi iTech (Guangdong)'s net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 15% in the same period.
SZSE:002600 Past Earnings Growth October 20th 2022
Earnings growth is a huge factor in stock valuation. 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. If you're wondering about Lingyi iTech (Guangdong)'s's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Lingyi iTech (Guangdong) Efficiently Re-investing Its Profits?
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. We infer that the company has been reinvesting all of its profits to grow its business.
Summary
On the whole, we do feel that Lingyi iTech (Guangdong) has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
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灵益科技(广东)(SZSE:002600)经历了艰难的三个月,股价下跌了8.2%。然而,股价通常是由公司的长期财务状况推动的,在这种情况下,财务状况看起来相当不错。具体地说,我们决定在本文中研究灵益科技(广东)的净资产收益率。
股本回报率(ROE)是用来评估公司管理层利用公司资本效率的关键指标。换句话说,这是一个衡量公司股东提供的资本回报率的盈利比率。
查看我们对灵益科技(广东)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,灵益科技(广东)的净资产收益率为:
7.7%=13亿元×160亿元(基于截至2022年6月的12个月)。
“收益”是过去12个月的利润。因此,这意味着股东每投资1元人民币,公司就会产生0.08元的利润。
净资产收益率与盈利增长之间有什么关系?
我们已经证实,净资产收益率是一家公司未来收益的有效盈利指标。我们现在需要评估公司将多少利润再投资或“保留”用于未来的增长,这就让我们对公司的增长潜力有了一个了解。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。
灵益科技(广东)盈利增长与净资产收益率7.7%的对比分析
从表面上看,灵益科技(广东)的净资产收益率(ROE)不值一提。然而,更仔细的研究表明,该公司的ROE类似于9.0%的行业平均水平。另一方面,灵益iTech(广东)报告称,过去五年净利润温和增长17%。考虑到ROE相对较低,很可能还有其他一些方面正在积极影响公司的收益增长。例如,公司管理层做出了一些正确的战略决策,或者公司的派息率较低。
接下来,通过将灵益iTech(广东)的净收入增长与行业进行比较,我们发现该公司的报告增长与同期15%的行业平均增长率相似。
深圳证交所:过去002600的收益增长2022年10月20日
盈利增长是股票估值的一个重要因素。投资者下一步需要确定的是,预期的收益增长是否已经计入了股价。这样做将有助于他们确定该股的未来看起来是光明的还是不祥的。如果你想知道灵益科技(广东)的估值,看看它的市盈率指标,看看它与行业的对比。
灵益科技(广东)是否有效地将利润进行了再投资?
虽然该公司过去确实支付了一部分股息,但目前不支付股息。我们推断,该公司一直在将所有利润进行再投资,以发展业务。
摘要
总体而言,我们确实感觉到灵益科技(广东)有一些积极的属性。凭借高再投资率,尽管净资产收益率较低,该公司的收益实现了相当大的增长。话虽如此,但从目前分析师的预估来看,我们发现该公司的盈利势头有望增强。要了解更多分析师对该公司的最新预测,请查看分析师对该公司预测的可视化。
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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。