Zhejiang Dun'an Artificial Environment Co., Ltd's (SZSE:002011) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Zhejiang Dun'an Artificial Environment Co., Ltd's (SZSE:002011) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
With its stock down 16% over the past three months, it is easy to disregard Zhejiang Dun'an Artificial Environment (SZSE:002011). However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Particularly, we will be paying attention to Zhejiang Dun'an Artificial Environment's ROE today.
过去三个月,随着股价下跌16%,很容易忽略盾安环境(SZSE:002011)。然而,股票价格通常受到公司长期财务表现的推动,在这种情况下,看起来相当有前途。特别是今天我们将关注盾安环境的roe。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股东权益回报率(ROE)是测试公司如何有效地增加其价值并管理投资者资金的指标。简而言之,它用于评估公司相对于股本资本的盈利能力。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
Return on equity can be calculated by using the formula:
股东权益报酬率可以使用以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润(从持续经营中获得)÷ 股东权益
So, based on the above formula, the ROE for Zhejiang Dun'an Artificial Environment is:
因此,根据上述公式,盾安环境的roe为:
17% = CN¥781m ÷ CN¥4.6b (Based on the trailing twelve months to March 2024).
17% = CN¥78100万 ÷ CN¥46亿(基于截至2024年3月的过去12个月)。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.17.
“回报”是每年的利润。这意味着,对于股东投资的每CN¥1,该公司会创造CN¥0.17的利润。
What Is The Relationship Between ROE And Earnings Growth?
ROE与盈利增长之间的关系是什么?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
到目前为止,我们已经知道ROE评估了公司利润生成效率。现在我们需要评估公司回报率或“保留”了多少利润以供未来增长,从而可以了解公司的增长潜力。总的来说,其他条件相同的情况下,具有高ROE和利润保留的公司比没有这些属性的公司有更高的增长率。
Zhejiang Dun'an Artificial Environment's Earnings Growth And 17% ROE
盾安环境的盈利增长和17%ROE
To start with, Zhejiang Dun'an Artificial Environment's ROE looks acceptable. On comparing with the average industry ROE of 8.3% the company's ROE looks pretty remarkable. This certainly adds some context to Zhejiang Dun'an Artificial Environment's exceptional 65% net income growth seen over the past five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
首先,盾安环境的roe看起来可以接受。与行业平均roe 8.3%相比,公司的roe看起来非常出色。这给盾安环境过去五年中出现的卓越65%的净利润增长增加了一些背景。我们认为这里可能还有其他因素起作用,比如高收益率或有效的管理。
As a next step, we compared Zhejiang Dun'an Artificial Environment's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 4.2%.
作为下一步,我们将盾安环境的净利润增长与行业进行了比较,令人欣慰的是,我们发现公司的增长超过了平均行业增长4.2%。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240625/0-a424b190a585708bce95126806e04a2a-0-0b42c8d67c5d88f8c50685fb15b76c64.png/big)
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Zhejiang Dun'an Artificial Environment fairly valued compared to other companies? These 3 valuation measures might help you decide.
盈利增长是股票估值中的一个重要因素。投资者应尝试确定预期的盈利增长还是下降(无论哪种情况)是否已定价。通过这样做,他们将了解股票是朝着清澈的蓝色水域还是等待沼泽水域前进。与其他公司相比,盾安环境是否公平价值?这3个估值指标可能会帮助您做出决定。
Is Zhejiang Dun'an Artificial Environment Using Its Retained Earnings Effectively?
盾安环境是否有效利用其留存收益?
Zhejiang Dun'an Artificial Environment doesn't pay any regular dividends currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above.
盾安环境目前不支付常规股息,这基本上意味着它一直在将其所有利润重新投资到业务中。这绝对有助于我们上面讨论的高收益增长率。
Conclusion
结论
On the whole, we feel that Zhejiang Dun'an Artificial Environment's performance has been quite good. 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. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
总体而言,我们认为盾安环境的表现相当不错。特别是,我们喜欢公司大力重新投资其业务,以高回报率。言而总之,预计该公司的利润增长将放缓,如当前分析师预测所示。这些分析师的预期是基于行业的广泛预期,还是基于公司的基本面?单击此处转到我们的分析师预测页面。
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对本文有反馈?关于内容有所顾虑?直接和我们联系。或电邮 editorial-team (at) simplywallst.com。
这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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