Weak Statutory Earnings May Not Tell The Whole Story For Renxin New MaterialLtd (SZSE:301395)
Weak Statutory Earnings May Not Tell The Whole Story For Renxin New MaterialLtd (SZSE:301395)
A lackluster earnings announcement from Renxin New Material Co.,Ltd. (SZSE:301395) last week didn't sink the stock price. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
一份平淡无奇的财报仁信新材料有限公司。(SZSE:301395)上周股价并未下跌。我们的分析表明,除了疲软的利润数据外,投资者还应该意识到数字中的其他一些潜在弱点。
View our latest analysis for Renxin New MaterialLtd
查看我们对仁信新材料有限公司的最新分析
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231101/0-414fb4c995ee0895e407e2a11063adfd-0-b834780af992acf1d23fd71348f5c6a4.png/big)
Examining Cashflow Against Renxin New MaterialLtd's Earnings
对照人新新材料有限公司的收益考察现金流
Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF.
许多投资者都没有听说过现金流应计比率但它实际上是衡量一家公司在给定时期内自由现金流(FCF)支持公司利润的程度的有用指标。为了得到应计比率,我们首先从一个时期的利润中减去FCF,然后用这个数字除以该时期的平均运营资产。这一比率向我们展示了一家公司的利润超过其固定现金流的程度。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
因此,负的应计比率对公司是积极的,而正的应计比率是负的。虽然应计比率为正并不是问题,这表明非现金利润达到了一定的水平,但高的应计比率可以说是一件坏事,因为它表明账面利润与现金流不匹配。引用勒维伦和雷苏泰克2014年的一篇论文,“应计利润较高的公司未来的利润往往较低”。
Over the twelve months to September 2023, Renxin New MaterialLtd recorded an accrual ratio of 0.30. We can therefore deduce that its free cash flow fell well short of covering its statutory profit, suggesting we might want to think twice before putting a lot of weight on the latter. Over the last year it actually had negative free cash flow of CN¥63m, in contrast to the aforementioned profit of CN¥54.1m. We saw that FCF was CN¥132m a year ago though, so Renxin New MaterialLtd has at least been able to generate positive FCF in the past. One positive for Renxin New MaterialLtd shareholders is that it's accrual ratio was significantly better last year, providing reason to believe that it may return to stronger cash conversion in the future. As a result, some shareholders may be looking for stronger cash conversion in the current year.
在截至2023年9月的12个月内,人人新材料有限公司的应计比率为0.30。因此,我们可以推断,它的自由现金流远远低于其法定利润,这表明我们在加大对后者的重视之前,可能需要三思而后行。在过去的一年里,它实际上负面自由现金流为人民币6300万元,而前述利润为人民币5410万元。我们看到一年前的FCF是1.32亿元人民币,所以仁信新材料有限公司至少在过去能够产生正的FCF。对人新新材料有限公司的股东来说,一个积极的因素是,该公司去年的应计比率明显好于去年,这提供了一个理由,让人相信该公司未来可能会恢复更强劲的现金转换。因此,一些股东可能希望在本年度实现更强劲的现金转换。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Renxin New MaterialLtd.
注:我们总是建议投资者检查资产负债表的实力。点击此处查看我们对仁信新材料有限公司的资产负债表分析。
Our Take On Renxin New MaterialLtd's Profit Performance
我们对仁信新材料有限公司盈利表现的看法
Renxin New MaterialLtd didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal. Because of this, we think that it may be that Renxin New MaterialLtd's statutory profits are better than its underlying earnings power. In further bad news, its earnings per share decreased in the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you want to do dive deeper into Renxin New MaterialLtd, you'd also look into what risks it is currently facing. For example, we've found that Renxin New MaterialLtd has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.
人新新材料有限公司去年没有将大部分利润转化为自由现金流,一些投资者可能认为这相当不理想。正因为如此,我们认为可能是人新新材料有限公司的法定利润好于其潜在的盈利能力。更坏的消息是,该公司去年的每股收益有所下降。归根结底,如果你想正确地了解这家公司,除了以上几个因素之外,考虑其他因素也是至关重要的。如果你真的想更深入地研究人新新材料有限公司,你也应该看看它目前面临的风险是什么。例如,我们发现人新新材料有限公司已经4个警示标志(两个有点令人担忧!)在进一步分析之前,这一点值得你注意。
Today we've zoomed in on a single data point to better understand the nature of Renxin New MaterialLtd's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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.
今天,我们放大了一个数据点,以更好地了解人新新材料有限公司的利润性质。但还有很多其他方式可以让你了解一家公司的看法。例如,许多人认为高股本回报率是有利的商业经济指标,而另一些人则喜欢“跟着钱走”,寻找内部人士正在买入的股票。所以你可能想看看这个免费拥有高股本回报率的公司的集合,或内部人士正在购买的这份股票清单。
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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。