We Think That There Are More Issues For Jiangsu Lidao New Materials (SHSE:603937) Than Just Sluggish Earnings
We Think That There Are More Issues For Jiangsu Lidao New Materials (SHSE:603937) Than Just Sluggish Earnings
The subdued market reaction suggests that Jiangsu Lidao New Materials Co., Ltd.'s (SHSE:603937) recent earnings didn't contain any surprises. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
疲软的市场反应表明,江苏丽岛新材料有限公司s(上海证券交易所代码:603937)最近的收益没有任何意外。我们的分析表明,除了疲软的利润数字外,投资者还应意识到这些数字中的其他一些潜在弱点。
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A Closer Look At Jiangsu Lidao New Materials' Earnings
仔细看看江苏丽岛新材的收益
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow.
用于衡量公司将其利润转换为自由现金流(FCF)的情况的一个关键财务比率是应计比率。应计比率从给定时期的利润中减去FCF,然后将结果除以该时间内公司的平均运营资产。这个比率告诉我们,一家公司的利润中有多少没有自由现金流的支持。
Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
因此,当公司的应计比率为负时,这实际上被认为是一件好事,但如果其应计比率为正,则是一件坏事。虽然正应计比率表明非现金利润达到一定水平不是问题,但高应计比率可以说是一件坏事,因为它表明纸面利润与现金流不匹配。引用Lewellen和Resutek在2014年发表的一篇论文,“应计额较高的公司将来的利润往往会降低”。
Jiangsu Lidao New Materials has an accrual ratio of 0.27 for the year to March 2024. We can therefore deduce that its free cash flow fell well short of covering its statutory profit. In the last twelve months it actually had negative free cash flow, with an outflow of CN¥309m despite its profit of CN¥53.9m, mentioned above. We also note that Jiangsu Lidao New Materials' free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of CN¥309m.
截至2024年3月的一年中,江苏丽岛新材的应计比率为0.27。因此,我们可以推断出其自由现金流远不足以支付其法定利润。在过去的十二个月里,它实际上有 负面的 自由现金流,尽管利润为5,390万元人民币,但流出量仍为3.09亿元人民币,如上所述。我们还注意到,去年,江苏丽岛新材的自由现金流实际上也是负的,因此我们可以理解股东是否被其3.09亿元的流出所困扰。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Jiangsu Lidao New Materials.
注意:我们始终建议投资者检查资产负债表的实力。点击此处查看我们对江苏丽岛新材料的资产负债表分析。
Our Take On Jiangsu Lidao New Materials' Profit Performance
我们对江苏丽岛新材盈利表现的看法
Jiangsu Lidao New Materials didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal. Because of this, we think that it may be that Jiangsu Lidao New Materials' statutory profits are better than its underlying earnings power. Sadly, its EPS was down over the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So while earnings quality is important, it's equally important to consider the risks facing Jiangsu Lidao New Materials at this point in time. For example, we've found that Jiangsu Lidao New Materials has 3 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
去年,江苏丽岛新材没有将其大部分利润转化为自由现金流,一些投资者可能认为这种情况相当不理想。正因为如此,我们认为可能是江苏丽岛新材的法定利润好于其基础盈利能力。不幸的是,在过去的十二个月中,其每股收益有所下降。归根结底,如果你想正确地了解公司,必须考虑的不仅仅是上述因素。因此,尽管收益质量很重要,但考虑江苏丽岛新材目前面临的风险同样重要。例如,我们发现江苏丽岛新材有 3 个警告标志(2 个不容忽视!)在进行进一步分析之前,这值得你注意。
Today we've zoomed in on a single data point to better understand the nature of Jiangsu Lidao New Materials' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
今天,我们放大了单个数据点,以更好地了解江苏丽岛新材料利润的性质。但是,如果你能够将注意力集中在细节上,总会有更多的事情需要发现。例如,许多人认为高股本回报率是有利的商业经济的标志,而另一些人则喜欢 “关注资金”,寻找内部人士正在买入的股票。因此,你可能希望看到这份免费收藏的拥有高股本回报率的公司,或者这份内部人士正在购买的股票清单。
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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。