Nanjing Hanrui CobaltLtd (SZSE:300618) has had a rough three months with its share price down 16%. It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. Specifically, we decided to study Nanjing Hanrui CobaltLtd'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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
View our latest analysis for Nanjing Hanrui CobaltLtd
How Is ROE Calculated?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Nanjing Hanrui CobaltLtd is:
8.3% = CN¥430m ÷ CN¥5.2b (Based on the trailing twelve months to September 2022).
The 'return' is the profit over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.08 in profit.
Why Is ROE Important For 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. 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.
Nanjing Hanrui CobaltLtd's Earnings Growth And 8.3% ROE
When you first look at it, Nanjing Hanrui CobaltLtd's ROE doesn't look that attractive. However, its ROE is similar to the industry average of 8.3%, so we won't completely dismiss the company. Still, Nanjing Hanrui CobaltLtd has seen a flat net income growth over the past five years. Remember, the company's ROE is not particularly great to begin with. So that could also be one of the reasons behind the company's flat growth in earnings.
Next, on comparing with the industry net income growth, we found that Nanjing Hanrui CobaltLtd's reported growth was lower than the industry growth of 18% in the same period, which is not something we like to see.
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-17160415-0-dbaf57c54dc09486b2868a0be03f740a.png/big)
SZSE:300618 Past Earnings Growth November 26th 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. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Nanjing Hanrui CobaltLtd is trading on a high P/E or a low P/E, relative to its industry.
Is Nanjing Hanrui CobaltLtd Using Its Retained Earnings Effectively?
Nanjing Hanrui CobaltLtd's low three-year median payout ratio of 15% (implying that the company keeps85% of its income) should mean that the company is retaining most of its earnings to fuel its growth and this should be reflected in its growth number, but that's not the case.
In addition, Nanjing Hanrui CobaltLtd has been paying dividends over a period of five years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.
Summary
In total, we're a bit ambivalent about Nanjing Hanrui CobaltLtd's performance. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. So far, we've only made a quick discussion around the company's earnings growth. You can do your own research on Nanjing Hanrui CobaltLtd 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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南京汉瑞股份有限公司(SZSE:300618)经历了艰难的三个月,股价下跌了16%。市场可能忽视了该公司不同的财务状况,决定向负面情绪倾斜。股票价格通常是由公司的长期财务表现推动的,因此我们决定更多地关注公司的财务表现。具体地说,我们决定在本文中研究南京汉瑞股份有限公司的净资产收益率。
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。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。
查看我们对南京汉瑞科博特有限公司的最新分析
净资产收益率是如何计算的?
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,南京汉瑞股份有限公司的净资产收益率为:
8.3%=4.3亿元×52亿元(以截至2022年9月的12个月为基础)。
“收益”是过去12个月的利润。另一种说法是,公司每持有价值1元的股权,就能赚取0.08元的利润。
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。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。
南京汉瑞科博特盈利增长8.3%净资产收益率
乍一看,南京汉瑞股份有限公司的净资产收益率(ROE)看起来并不那么吸引人。不过,其净资产收益率接近8.3%的行业平均水平,因此我们不会完全对该公司不屑一顾。尽管如此,南京汉瑞科博特有限公司在过去五年中净利润增长持平。请记住,该公司的净资产收益率从一开始就不是特别高。因此,这也可能是该公司盈利增长持平的原因之一。
接下来,对比行业净收入增长,我们发现南京汉瑞股份有限公司的报告增长低于同期行业18%的增长,这是我们不愿意看到的。
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-17160415-0-dbaf57c54dc09486b2868a0be03f740a.png/big)
深圳证交所:过去300618的收益增长2022年11月26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。衡量预期收益增长的一个很好的指标是市盈率,它根据一只股票的盈利前景决定市场愿意为其支付的价格。因此,你可能想看看南京汉瑞科技有限公司的市盈率相对于其行业是高市盈率还是低市盈率。
南京汉瑞科技有限公司是否有效地利用了其留存收益?
南京汉瑞科技股份有限公司较低的三年派息率中值为15%(这意味着该公司保留了85%的收入),这应该意味着该公司将保留大部分收益来推动其增长,这应该反映在其增长数据中,但事实并非如此。
此外,南京汉瑞股份有限公司在过去五年里一直在发放股息,这表明继续支付股息对管理层来说要重要得多,即使这是以业务增长为代价的。
摘要
总体而言,我们对南京汉瑞股份有限公司的表现有点矛盾。虽然该公司的利润留存率确实很高,但其低回报率可能正在阻碍其收益增长。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。你可以自己研究南京汉瑞科技有限公司,看看它在过去的表现如何,通过查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。