NCS Testing Technology Co., Ltd. (SZSE:300797) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
NCS Testing Technology Co., Ltd. (SZSE:300797) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
NCS Testing Technology (SZSE:300797) has had a rough three months with its share price down 20%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on NCS Testing Technology's ROE.
NCS测试技术(深圳证券交易所代码:300797)经历了艰难的三个月,其股价下跌了20%。但是,仔细观察其稳健的财务状况可能会让你重新考虑。鉴于基本面通常会推动长期市场业绩,因此该公司值得关注。在本文中,我们决定重点介绍NCS测试技术的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
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。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?
Return on equity can be calculated by using the formula:
股本回报率可以使用以下公式计算:
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 NCS Testing Technology is:
因此,根据上述公式,NCS测试技术的投资回报率为:
8.2% = CN¥84m ÷ CN¥1.0b (Based on the trailing twelve months to September 2023).
8.2% = 8400万元人民币 ÷ 1.0亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.08 in profit.
“回报” 是每年的利润。将其概念化的一种方法是,公司每拥有1元人民币的股东资本,就能获得0.08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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
我们已经确定,投资回报率是衡量公司未来收益的有效盈利指标。然后,我们能够评估公司的收益增长潜力,具体取决于公司对这些利润进行再投资或 “保留” 了多少及其有效性。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 NCS Testing Technology's Earnings Growth And 8.2% ROE
NCS Testing Technology的收益增长和8.2%的投资回报率的并排比较
At first glance, NCS Testing Technology's ROE doesn't look very promising. However, the fact that the its ROE is quite higher to the industry average of 6.7% doesn't go unnoticed by us. This certainly adds some context to NCS Testing Technology's moderate 13% net income growth seen over the past five years. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. Hence there might be some other aspects that are causing earnings to grow. For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.
乍一看,NCS测试技术的投资回报率看起来并不十分乐观。但是,其投资回报率远高于行业平均水平的6.7%,这一事实并没有被我们忽视。这无疑为NCS Testing Technology在过去五年中实现的13%的温和净收入增长增添了一些背景信息。请记住,该公司的投资回报率确实适度低。只是行业的投资回报率较低。因此,可能还有其他一些方面导致收益增长。例如,整个行业可能正在经历高增长阶段,或者该公司的派息率很低。
We then compared NCS Testing Technology'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 2.7% in the same 5-year period.
然后,我们将NCS Testing Technology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2.7%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/7781/20240417/0-e222629f3c54912e610ba2f8b045fab1-0-53ea74ed6074fe7235cbd2cd102eb780.png/big)
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Is NCS Testing Technology fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是对股票进行估值时要考虑的重要指标。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。这样做将帮助他们确定股票的未来是乐观还是不祥的。与其他公司相比,NCS测试技术的估值是否合理?这3种估值指标可能会帮助您做出决定。
Is NCS Testing Technology Efficiently Re-investing Its Profits?
NCS 测试技术能否有效地将其利润再投资?
With a three-year median payout ratio of 28% (implying that the company retains 72% of its profits), it seems that NCS Testing Technology is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
NCS Testing Technology的三年派息率中位数为28%(这意味着该公司保留了72%的利润),看来正在进行有效的再投资,其收益将实现可观的增长,并支付可观的股息。
Moreover, NCS Testing Technology is determined to keep sharing its profits with shareholders which we infer from its long history of four years of paying a dividend.
此外,NCS Testing Technology决心继续与股东分享利润,这是我们从其四年支付股息的长期历史中推断出来的。
Conclusion
结论
Overall, we are quite pleased with NCS Testing Technology's performance. Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. To know the 2 risks we have identified for NCS Testing Technology visit our risks dashboard for free.
总的来说,我们对NCS测试技术的表现非常满意。具体而言,我们喜欢它一直在以适度的回报率再投资其很大一部分利润,从而实现了收益的扩张。考虑到每股收益如何影响长期股价,如果该公司继续以现有方式增长收益,这可能会对其股价产生积极影响。请记住,股票的价格还取决于感知的风险。因此,在投资任何公司之前,投资者必须随时了解所涉及的风险。要了解我们为NCS测试技术确定的两种风险,请免费访问我们的风险仪表板。
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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。