Declining Stock and Decent Financials: Is The Market Wrong About Contec Medical Systems Co.,Ltd (SZSE:300869)?
Declining Stock and Decent Financials: Is The Market Wrong About Contec Medical Systems Co.,Ltd (SZSE:300869)?
It is hard to get excited after looking at Contec Medical SystemsLtd's (SZSE:300869) recent performance, when its stock has declined 12% over the past three months. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Contec Medical SystemsLtd's ROE today.
看了康泰克医疗系统有限公司(深圳证券交易所代码:300869)最近的业绩,很难感到兴奋,当时其股票在过去三个月中下跌了12%。但是,从长远来看,股票价格通常由公司的财务状况驱动,在这种情况下,这看起来相当可观。特别是,我们今天将关注康泰克医疗系统有限公司的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
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,投资回报率显示了每美元从其股东投资中产生的利润。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
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 Contec Medical SystemsLtd is:
因此,根据上述公式,康泰克医疗系统有限公司的投资回报率为:
10% = CN¥217m ÷ CN¥2.1b (Based on the trailing twelve months to September 2023).
10% = 2.17亿元人民币 ÷ 21亿元人民币(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¥0.10 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0.10元人民币的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系?
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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。现在,我们需要评估公司再投资或 “保留” 了多少利润以用于未来的增长,从而使我们对公司的增长潜力有所了解。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 Contec Medical SystemsLtd's Earnings Growth And 10% ROE
Contec Medical SystemsLtd的收益增长和10%的投资回报率的并排比较
At first glance, Contec Medical SystemsLtd's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 9.0%, we may spare it some thought. Having said that, Contec Medical SystemsLtd has shown a modest net income growth of 9.9% 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. Such as - high earnings retention or an efficient management in place.
乍一看,康泰克医疗系统有限公司的投资回报率看起来并不十分乐观。但是,鉴于该公司的投资回报率与9.0%的行业平均投资回报率相似,我们可以考虑一下。话虽如此,康泰克医疗系统有限公司在过去五年中表现出9.9%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——高收益留存率或实行高效管理。
As a next step, we compared Contec Medical SystemsLtd's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 14% in the same period.
下一步,我们将Contec Medical SystemsLtd的净收入增长与该行业进行了比较,并失望地看到该公司的增长低于同期14%的行业平均增长。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240424/0-49b6366ad8b78f2aaa1fbbdc8820f8e1-0-3bac3eb9b65c55fda96765d293e61643.png/big)
Earnings growth is an important metric to consider when valuing a stock. 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 Contec Medical SystemsLtd is trading on a high P/E or a low P/E, relative to its industry.
收益增长是对股票进行估值时要考虑的重要指标。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,您可能需要检查与其行业相比,康泰克医疗系统有限公司的交易市盈率是高还是低。
Is Contec Medical SystemsLtd Using Its Retained Earnings Effectively?
康泰克医疗系统有限公司是否有效地使用了其留存收益?
Contec Medical SystemsLtd's three-year median payout ratio to shareholders is 24% (implying that it retains 76% of its income), which is on the lower side, so it seems like the management is reinvesting profits heavily to grow its business.
Contec Medical SystemsLtd的三年股东派息率中位数为24%(这意味着它保留了收入的76%),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, Contec Medical SystemsLtd has been paying dividends over a period of three years. This shows that the company is committed to sharing profits with its shareholders.
此外,康泰克医疗系统有限公司在三年内一直在支付股息。这表明该公司致力于与股东分享利润。
Summary
摘要
Overall, we feel that Contec Medical SystemsLtd certainly does have some positive factors to consider. Namely, its respectable earnings growth, which it achieved due to it retaining most of its profits. However, given the low ROE, investors may not be benefitting from all that reinvestment after all. 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 would have the 2 risks we have identified for Contec Medical SystemsLtd.
总的来说,我们认为康泰克医疗系统有限公司确实有一些积极的因素需要考虑。也就是说,其可观的收益增长是由于保留了大部分利润而实现的。但是,鉴于投资回报率低,投资者毕竟可能无法从所有这些再投资中受益。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Contec Medical SystemsLtd确定的两种风险。
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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。