Is Weakness In EST Tools Co., Ltd (SZSE:300488) Stock A Sign That The Market Could Be Wrong Given Its Strong Financial Prospects?
Is Weakness In EST Tools Co., Ltd (SZSE:300488) Stock A Sign That The Market Could Be Wrong Given Its Strong Financial Prospects?
With its stock down 9.3% over the past week, it is easy to disregard EST Tools (SZSE:300488). However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. In this article, we decided to focus on EST Tools' ROE.
过去一周,其股价下跌了9.3%,很容易忽视EST Tools(深圳证券交易所代码:300488)。但是,股票价格通常由公司的长期财务业绩驱动,在这种情况下,这看起来很有希望。在本文中,我们决定重点关注EST Tools的投资回报率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率或投资回报率是用于评估公司管理层利用公司资本效率的关键指标。简而言之,它用于评估公司相对于其股权资本的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
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 EST Tools is:
因此,根据上述公式,EST工具的投资回报率为:
10% = CN¥135m ÷ CN¥1.3b (Based on the trailing twelve months to December 2023).
10% = 1.35亿元人民币 ÷ 13亿元人民币(基于截至2023年12月的过去十二个月)。
The 'return' is the yearly profit. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.10 in profit.
“回报” 是每年的利润。这意味着,每获得价值1元人民币的股东权益,该公司就会产生0.10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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
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。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。
A Side By Side comparison of EST Tools' Earnings Growth And 10% ROE
EST Tools的收益增长和10%的投资回报率的并排比较
At first glance, EST Tools' ROE doesn't look very promising. However, the fact that the company's ROE is higher than the average industry ROE of 7.5%, is definitely interesting. Consequently, this likely laid the ground for the decent growth of 9.9% seen over the past five years by EST Tools. 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,EST Tools的投资回报率看起来并不十分乐观。但是,该公司的投资回报率高于7.5%的行业平均投资回报率,这一事实绝对很有趣。因此,这可能为EST Tools在过去五年中实现9.9%的体面增长奠定了基础。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。
Next, on comparing EST Tools' net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 11% over the last few years.
接下来,在将EST Tools的净收入增长与该行业进行比较时,我们发现该公司报告的增长与过去几年11%的行业平均增长率相似。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240419/0-9bc4a50915ec7ecf6bfa25e151c11636-0-c615ca88ab91a8d013a190ac3c9b614d.png/big)
Earnings growth is a huge factor in stock valuation. 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. If you're wondering about EST Tools''s valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增长是股票估值的重要因素。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。如果你想知道EST Tools的估值,可以看看这个衡量其市盈率与行业相比的指标。
Is EST Tools Making Efficient Use Of Its Profits?
EST 工具能否有效利用其利润?
EST Tools' three-year median payout ratio to shareholders is 22% (implying that it retains 78% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business.
EST Tools的三年股东派息率中位数为22%(这意味着它保留了78%的收入),处于较低水平,因此管理层似乎正在大量再投资利润以发展其业务。
Besides, EST Tools has been paying dividends over a period of eight years. This shows that the company is committed to sharing profits with its shareholders.
此外,EST Tools已经在八年内派发了股息。这表明该公司致力于与股东分享利润。
Conclusion
结论
Overall, we are quite pleased with EST Tools' performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate.
总的来说,我们对EST Tools的表现非常满意。特别是,很高兴看到该公司的收益在可观的投资回报率和高再投资率的支持下实现了显著增长。
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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。