It is hard to get excited after looking at ZYF Lopsking Aluminum's (SZSE:002333) recent performance, when its stock has declined 13% over the past three months. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. In this article, we decided to focus on ZYF Lopsking Aluminum's ROE.
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 ZYF Lopsking Aluminum
How Is ROE Calculated?
ROE 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 ZYF Lopsking Aluminum is:
1.0% = CN¥17m ÷ CN¥1.8b (Based on the trailing twelve months to June 2022).
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.01 in profit.
What Is The Relationship Between ROE And Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. 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.
ZYF Lopsking Aluminum's Earnings Growth And 1.0% ROE
As you can see, ZYF Lopsking Aluminum's ROE looks pretty weak. Not just that, even compared to the industry average of 8.9%, the company's ROE is entirely unremarkable. Despite this, surprisingly, ZYF Lopsking Aluminum saw an exceptional 49% net income growth over the past five years. We reckon that there could be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.
We then compared ZYF Lopsking Aluminum'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 18% in the same period.
SZSE:002333 Past Earnings Growth October 21st 2022
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is ZYF Lopsking Aluminum fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is ZYF Lopsking Aluminum Using Its Retained Earnings Effectively?
Given that ZYF Lopsking Aluminum 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 ZYF Lopsking Aluminum 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 2 risks we have identified for ZYF Lopsking Aluminum 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.
看到ZYF Lopsking铝业(SZSE：002333)最近的表现，很难感到兴奋，因为它的股票在过去三个月里下跌了13%。但如果你密切关注，你可能会发现，该公司的关键财务指标看起来相当不错，这可能意味着，鉴于市场通常会奖励更具弹性的长期基本面因素，该股可能会在长期内上涨。在本文中，我们决定关注ZYF Lopsking铝业的净资产收益率。
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ZYF Lopsking铝的最新分析
净资产收益率是如何计算的？
可使用以下公式计算净资产收益率：
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，ZYF Lopsking铝业的净资产收益率为：
1.0%=1700万元×18亿元(以截至2022年6月的12个月为基础)。
“收益”是过去12个月的利润。这意味着，股东权益每增加1元，公司就会产生0.01元的利润。
净资产收益率与盈利增长之间有什么关系？
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。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。
ZYF Lopsking铝业的收益增长和1.0%的净资产收益率
如你所见，ZYF Lopsking铝业的净资产收益率(ROE)看起来相当弱。不仅如此，即使与8.9%的行业平均水平相比，该公司的净资产收益率也完全不起眼。尽管如此，令人惊讶的是，ZYF Lopsking铝业在过去五年中实现了49%的异常净收入增长。我们认为，可能还有其他因素在起作用。例如，该公司的派息率较低或管理效率较高。
然后我们将ZYF Lopsking铝业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18%的行业增长率相比，该公司的增长数字更高。
深圳证交所：过去002333的收益增长2022年10月21日
盈利增长是评估一只股票时需要考虑的一个重要指标。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。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。与其他公司相比，ZYF罗布斯金铝业的估值是否公平？这3个估值指标可能会帮助你做出决定。
ZYF Lopsking铝业是否有效利用其留存收益？
鉴于ZYF Lopsking铝业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增长业务。
结论
总体而言，我们确实觉得ZYF Lopsking铝业有一些积极的属性。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。您可以访问我们的网站查看我们为ZYF Lopsking铝业确定的两个风险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。
