Most readers would already be aware that Shenzhen Cereals HoldingsLtd's (SZSE:000019) stock increased significantly by 11% over the past month. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Particularly, we will be paying attention to Shenzhen Cereals HoldingsLtd'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. Put another way, it reveals the company's success at turning shareholder investments into profits.
Check out our latest analysis for Shenzhen Cereals HoldingsLtd
How Do You 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 Shenzhen Cereals HoldingsLtd is:
9.6% = CN¥456m ÷ CN¥4.7b (Based on the trailing twelve months to September 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¥0.10 in profit.
What Has ROE Got To Do With Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. 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.
Shenzhen Cereals HoldingsLtd's Earnings Growth And 9.6% ROE
At first glance, Shenzhen Cereals HoldingsLtd's ROE doesn't look very promising. Although a closer study shows that the company's ROE is higher than the industry average of 7.3% which we definitely can't overlook. However, Shenzhen Cereals HoldingsLtd's five year net income growth was quite low averaging at only 3.1%. Bear in mind, the company does have a low ROE. It is just that the industry ROE is lower. Therefore, the low growth in earnings could also be the result of this.
We then compared Shenzhen Cereals HoldingsLtd's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 7.4% in the same period, which is a bit concerning.
SZSE:000019 Past Earnings Growth December 1st 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. This then helps them determine if the stock is placed for a bright or bleak future. Is Shenzhen Cereals HoldingsLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Shenzhen Cereals HoldingsLtd Making Efficient Use Of Its Profits?
With a high three-year median payout ratio of 63% (or a retention ratio of 37%), most of Shenzhen Cereals HoldingsLtd's profits are being paid to shareholders. This definitely contributes to the low earnings growth seen by the company.
Additionally, Shenzhen Cereals HoldingsLtd has paid dividends over a period of nine years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth.
Summary
On the whole, we feel that the performance shown by Shenzhen Cereals HoldingsLtd can be open to many interpretations. On the one hand, the company does have a decent rate of return, however, its earnings growth number is quite disappointing and as discussed earlier, the low retained earnings is hampering the growth. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. To know the 2 risks we have identified for Shenzhen Cereals HoldingsLtd visit our risks dashboard for free.
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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.
大多数读者应该已经知道,深圳谷物控股有限公司(SZSE:000019)的股票在过去一个月里大幅上涨了11%。但该公司的关键财务指标似乎在所有方面都不同,这让我们质疑该公司目前的股价势头能否保持下去。今天,我们将特别关注深圳粮业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。换句话说,它揭示了该公司成功地将股东投资转化为利润。
查看我们对深圳谷物控股有限公司的最新分析
你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,深圳谷物控股有限公司的净资产收益率为:
9.6%=4.56亿元×47亿元(以截至2022年9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0.10元人民币的利润。
净资产收益率与盈利增长有什么关系?
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。根据公司选择再投资或“保留”多少利润,我们就能够评估一家公司未来产生利润的能力。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。
深圳粮食控股有限公司盈利增长9.6%净资产收益率
乍一看,深圳谷物控股有限公司的净资产收益率看起来并不是很有希望。尽管更仔细的研究表明,该公司的净资产收益率高于7.3%的行业平均水平,但我们绝对不能忽视这一点。然而,深圳谷物控股有限公司五年的净收入增长相当低,平均仅为3.1%。请记住,该公司的净资产收益率确实很低。只是行业的净资产收益率较低。因此,盈利的低增长也可能是这一点的结果。
然后,我们将深圳粮食控股有限公司的净收入增长与行业进行了比较,发现该公司的增长数字低于同期7.4%的行业平均增长率,这有点令人担忧。
深圳证交所:过去000019的收益增长2022年12月1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。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,深圳粮食控股有限公司的估值公平吗?这3个估值指标可能会帮助你做出决定。
深圳粮业控股有限公司是否有效利用了利润?
由于三年的派息率中值高达63%(或留存率为37%),深圳粮食控股有限公司的大部分利润都支付给了股东。这肯定是该公司盈利增长较低的原因之一。
此外,深圳谷物控股有限公司在九年的时间里支付了股息,这意味着公司管理层决心支付股息,即使这意味着收益几乎没有增长。
摘要
总体而言,我们觉得深圳粮业股份有限公司的表现可以有多种解读。一方面,该公司确实有不错的回报率,但其收益增长数字相当令人失望,正如前面所讨论的那样,较低的留存收益正在阻碍增长。总而言之,我们将谨慎对待这家公司,其中一种方法是查看业务的风险概况。要了解我们为深圳谷物控股有限公司确定的两个风险,请免费访问我们的风险仪表板。
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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。