Will Weakness in Western Superconducting Technologies Co., Ltd.'s (SHSE:688122) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Western Superconducting Technologies Co., Ltd.'s (SHSE:688122) Stock Prove Temporary Given Strong Fundamentals?
Western Superconducting Technologies (SHSE:688122) has had a rough three months with its share price down 21%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Specifically, we decided to study Western Superconducting Technologies' ROE in this article.
西方超导科技(上海证券交易所代码:688122)经历了艰难的三个月,其股价下跌了21%。但是,如果你密切关注,你可能会发现,鉴于市场通常会奖励财务状况良好的公司,其强劲的财务状况可能意味着该股的长期价值可能会增加。具体而言,我们决定在本文中研究西方超导技术的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。换句话说,它是衡量公司股东提供的资本回报率的盈利比率。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算:
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 Western Superconducting Technologies is:
因此,根据上述公式,西方超导技术的投资回报率为:
12% = CN¥753m ÷ CN¥6.5b (Based on the trailing twelve months to December 2023).
12% = 7.53亿元人民币 ÷ 65亿元人民币(基于截至2023年12月的过去十二个月)。
The 'return' is the amount earned after tax 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¥0.12 in profit.
“回报” 是过去十二个月的税后收入。另一种思考方式是,每持有价值1元人民币的股权,该公司就能获得0.12元人民币的利润。
What Has ROE Got To Do With Earnings Growth?
投资回报率与收益增长有什么关系?
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. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前为止,我们已经了解到,投资回报率是衡量公司盈利能力的指标。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。假设其他一切保持不变,那么与不一定具有这些特征的公司相比,投资回报率和利润保留率越高,公司的增长率就越高。
Western Superconducting Technologies' Earnings Growth And 12% ROE
西方超导科技的收益增长和12%的投资回报率
At first glance, Western Superconducting Technologies seems to have a decent ROE. On comparing with the average industry ROE of 7.0% the company's ROE looks pretty remarkable. This probably laid the ground for Western Superconducting Technologies' significant 38% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看,西方超导科技公司的投资回报率似乎不错。与行业平均投资回报率7.0%相比,该公司的投资回报率看起来相当可观。这可能为西方超导科技在过去五年中实现38%的显著净收入增长奠定了基础。我们认为,可能还有其他方面对公司的收益增长产生积极影响。例如,该公司的派息率较低或管理效率很高。
We then compared Western Superconducting Technologies' 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 13% in the same 5-year period.
然后,我们将西部超导技术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,与同期同期13%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/7781/20240305/0-aca476c9b2049e224066090d88b1d499-0-7bcf1bb3820f0f1f742ec991f3559d55.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. 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 Western Superconducting Technologies 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。对于投资者来说,重要的是要知道市场是否对公司的预期收益增长(或下降)进行了定价。这样做将帮助他们确定股票的未来是乐观还是不祥的。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,您可能需要检查西方超导科技相对于其行业是高市盈率还是低市盈率。
Is Western Superconducting Technologies Making Efficient Use Of Its Profits?
西方超导技术是否在有效利用其利润?
The three-year median payout ratio for Western Superconducting Technologies is 45%, which is moderately low. The company is retaining the remaining 55%. By the looks of it, the dividend is well covered and Western Superconducting Technologies is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
西方超导科技三年派息率中位数为45%,略低。该公司保留了剩余的55%。从表面上看,股息覆盖范围很广,西方超导科技公司正在有效地对其利润进行再投资,我们上面讨论的其非凡增长就证明了这一点。
Moreover, Western Superconducting Technologies is determined to keep sharing its profits with shareholders which we infer from its long history of four years of paying a dividend. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 43%. Regardless, the future ROE for Western Superconducting Technologies is predicted to rise to 17% despite there being not much change expected in its payout ratio.
此外,西方超导技术公司决心继续与股东分享利润,这是我们从其四年支付股息的漫长历史中推断出来的。根据分析师的最新估计,我们发现该公司未来三年的派息率预计将稳定在43%。无论如何,尽管预计西方超导科技的派息率没有太大变化,但其未来的投资回报率预计将升至17%。
Conclusion
结论
Overall, we are quite pleased with Western Superconducting Technologies' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总的来说,我们对西方超导技术的表现非常满意。特别是,我们喜欢该公司对其业务进行大量再投资,而且回报率很高。毫不奇怪,这带来了令人印象深刻的收益增长。最新的行业分析师预测显示,预计该公司将保持目前的增长率。要详细了解分析师对公司的最新预测,请查看该公司的分析师预测的可视化。
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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。