Should Weakness in Weima Agricultural Machinery Co.,Ltd.'s (SZSE:301533) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Weima Agricultural Machinery Co.,Ltd.'s (SZSE:301533) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Weima Agricultural MachineryLtd (SZSE:301533) has had a rough three months with its share price down 44%. 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. Specifically, we decided to study Weima Agricultural MachineryLtd's ROE in this article.
威马农业机械有限公司(深圳证券交易所代码:301533)经历了艰难的三个月,其股价下跌了44%。但是,如果你密切关注,你可能会发现其关键财务指标看起来相当不错,考虑到市场通常会奖励更具弹性的长期基本面,这可能意味着该股有可能在长期内上涨。具体而言,我们决定在本文中研究威马农业机械有限公司的投资回报率。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
投资回报率或股本回报率是评估公司如何有效地从股东那里获得投资回报的有用工具。简而言之,它衡量公司相对于股东权益的盈利能力。
How Is ROE Calculated?
ROE 是如何计算的?
The formula for return on equity is:
股本回报率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Weima Agricultural MachineryLtd is:
因此,根据上述公式,威马农业机械有限公司的投资回报率为:
7.4% = CN¥82m ÷ CN¥1.1b (Based on the trailing twelve months to September 2023).
7.4% = 8.2亿元人民币 ÷ 11亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the income the business earned over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.07 in profit.
“回报” 是企业去年获得的收入。这意味着,每持有价值1元人民币的股东权益,该公司就会产生0.07元人民币的利润。
Why Is ROE Important For Earnings Growth?
为什么投资回报率对收益增长很重要?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. 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.
到目前为止,我们已经了解到,投资回报率衡量的是公司创造利润的效率。根据公司选择将多少利润进行再投资或 “保留”,我们便能够评估公司未来创造利润的能力。假设其他条件都一样,与功能不相同的公司相比,具有更高股本回报率和更高利润保留率的公司通常具有更高的增长率。
A Side By Side comparison of Weima Agricultural MachineryLtd's Earnings Growth And 7.4% ROE
威马农业机械有限公司的收益增长和7.4%的投资回报率的并排比较
When you first look at it, Weima Agricultural MachineryLtd's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.6%. Having said that, Weima Agricultural MachineryLtd has shown a modest net income growth of 16% over the past five years. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. For instance, the company has a low payout ratio or is being managed efficiently.
当你第一次看时,威马农业机械有限公司的投资回报率看起来并不那么吸引人。然而,一项更仔细的研究表明,该公司的投资回报率与行业平均水平的7.6%相似。话虽如此,威马农业机械有限公司在过去五年中表现出16%的温和净收入增长。鉴于投资回报率略低,可能还有其他一些方面推动这种增长。例如,该公司的派息率较低或管理效率很高。
We then compared Weima Agricultural MachineryLtd'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 12% in the same 5-year period.
然后,我们将威马农业机械有限公司的净收入增长与该行业进行了比较,我们很高兴地看到,与同期5年同期增长率为12%的行业相比,该公司的增长数字更高。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240210/0-ccea42f85b91bf0638fbe32ee4361657-0-9be173b6dcd7891d252dcf9c9a5ee64d.png/big)
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Weima Agricultural MachineryLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是股票估值的重要因素。无论如何,投资者应设法确定预期的收益增长或下降是否已计入其中。通过这样做,他们将知道股票是走向清澈的蓝色海水还是沼泽水域在等着呢。与其他公司相比,威马农业机械有限公司的估值是否合理?这3种估值指标可能会帮助您做出决定。
Is Weima Agricultural MachineryLtd Making Efficient Use Of Its Profits?
威马农业机械有限公司是否在有效利用其利润?
Given that Weima Agricultural MachineryLtd doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鉴于Weima Agricatural MachineryLtd不向其股东支付任何股息,我们推断该公司一直在将其所有利润再投资以发展业务。
Conclusion
结论
In total, it does look like Weima Agricultural MachineryLtd has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. 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. Our risks dashboard will have the 1 risk we have identified for Weima Agricultural MachineryLtd.
总的来说,威马农业机械有限公司的业务看起来确实有一些积极的方面。尽管回报率很低,但该公司将其利润的很大一部分再投资于业务这一事实无疑促进了其高收益增长。虽然我们不会完全解散公司,但我们要做的是努力确定业务的风险,以便在公司周围做出更明智的决定。我们的风险仪表板将包含我们为威马农业机械有限公司确定的第一种风险。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。