Nuode New Materials Co.,Ltd.'s (SHSE:600110) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Nuode New Materials Co.,Ltd.'s (SHSE:600110) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
With its stock down 19% over the past three months, it is easy to disregard Nuode New MaterialsLtd (SHSE:600110). 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. Particularly, we will be paying attention to Nuode New MaterialsLtd's ROE today.
Nuode New MaterialsLTD(上海证券交易所股票代码:600110)的股票在过去三个月中下跌了19%,很容易被忽视。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。特别是,我们今天将关注Nuode New MaterialsLtd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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
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,投资回报率显示了每美元从其股东投资中产生的利润。
How Is ROE Calculated?
ROE 是如何计算的?
The formula for ROE is:
ROE 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 Nuode New MaterialsLtd is:
因此,根据上述公式,Nuode New MaterialsLtd的投资回报率为:
1.6% = CN¥127m ÷ CN¥7.7b (Based on the trailing twelve months to September 2023).
1.6% = 1.27亿元人民币 ¥77亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.02.
“回报” 是每年的利润。因此,这意味着其股东每投资1元人民币,公司就会产生0.02CN的利润。
What Has ROE Got To Do With Earnings Growth?
投资回报率与收益增长有什么关系?
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. 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.
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。一般而言,在其他条件相同的情况下,股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。
A Side By Side comparison of Nuode New MaterialsLtd's Earnings Growth And 1.6% ROE
Nuode New MaterialsLtd的收益增长和1.6%的投资回报率的并行比较
As you can see, Nuode New MaterialsLtd's ROE looks pretty weak. Not just that, even compared to the industry average of 7.1%, the company's ROE is entirely unremarkable. In spite of this, Nuode New MaterialsLtd was able to grow its net income considerably, at a rate of 35% in the last five years. Therefore, there could be other reasons behind this growth. For instance, the company has a low payout ratio or is being managed efficiently.
如你所见,Nuode New MaterialsLtd的投资回报率看起来相当疲软。不仅如此,即使与7.1%的行业平均水平相比,该公司的投资回报率也完全不引人注目。尽管如此,Nuode New MaterialsLtd还是得以大幅增长其净收入,在过去五年中增长了35%。因此,这种增长背后可能还有其他原因。例如,该公司的派息率较低或管理效率很高。
We then compared Nuode New MaterialsLtd'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 14% in the same 5-year period.
然后,我们将Nuode New MaterialsLtd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14%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/7781/20240301/0-bd0cb6b1f4d0b58db113210484c71090-0-9689762fe145bfdebecafe6d21ce5d71.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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 Nuode New MaterialsLtd is trading on a high P/E or a low P/E, relative to its industry.
为公司附加价值的基础在很大程度上与其收益增长息息相关。投资者接下来需要确定的是,预期的收益增长或缺乏收益是否已经包含在股价中。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。衡量预期收益增长的一个很好的指标是市盈率,它根据收益前景决定了市场愿意为股票支付的价格。因此,你可能需要检查一下相对于其行业,Nuode New MaterialsLtd的交易市盈率是高还是低。
Is Nuode New MaterialsLtd Using Its Retained Earnings Effectively?
Nuode New MaterialsLtd 是否在有效使用其留存收益?
The three-year median payout ratio for Nuode New MaterialsLtd is 37%, which is moderately low. The company is retaining the remaining 63%. So it seems that Nuode New MaterialsLtd is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered.
Nuode New MaterialsLtd的三年派息率中位数为37%,略低。该公司保留了剩余的63%。因此,看来Nuode New MaterialsLtd正在高效地进行再投资,其收益实现了可观的增长(如上所述),并支付的股息覆盖范围广。
Besides, Nuode New MaterialsLtd has been paying dividends over a period of six years. This shows that the company is committed to sharing profits with its shareholders.
此外,Nuode New MaterialsLtd已在六年内派发了股息。这表明该公司致力于与股东分享利润。
Conclusion
结论
Overall, we feel that Nuode New MaterialsLtd certainly does have some positive factors to consider. 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. That being so, according to the latest industry analyst forecasts, the company's earnings are expected to shrink in the future. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
总的来说,我们认为Nuode New MaterialsLtd确实有一些积极的因素需要考虑。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其业务这一事实无疑促进了其高收益增长。既然如此,根据最新的行业分析师预测,该公司的收益预计将在未来萎缩。要了解有关公司未来收益增长预测的更多信息,请查看这份关于分析师预测的免费报告,以了解更多信息。
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