IWS Group Holdings' (HKG:6663) Problems Go Beyond Weak Profit
IWS Group Holdings' (HKG:6663) Problems Go Beyond Weak Profit
IWS Group Holdings Limited's (HKG:6663) recent weak earnings report didn't cause a big stock movement. However, we believe that investors should be aware of some underlying factors which may be of concern.
综合环保集团（HKG:6663）最近的低收益报告并没有引起股票的大幅波动。然而，我们相信投资者应该了解一些潜在因素可能会引起关注。
Zooming In On IWS Group Holdings' Earnings
深入挖掘综合环保集团的收益
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. The ratio shows us how much a company's profit exceeds its FCF.
用于衡量公司如何将其利润转化为自由现金流（FCF）的一个关键财务比率是预提账户。简单地说，这个比率从净利润中减去FCF，然后将那个数字除以该期间公司的平均营运资产。该比率显示了一个公司的利润超过了其FCF的多少。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
因此，负净应计比率对公司来说是一个积极的因素，而正净应计比率则是一个消极因素。虽然净应计比率高于零并不令人担忧，但我们认为，当一个公司的净应计比率相对较高时，值得注意。值得注意的是，有一些学术证据表明，高净应计比率通常是短期利润的一个不良迹象。
For the year to March 2024, IWS Group Holdings had an accrual ratio of 0.39. As a general rule, that bodes poorly for future profitability. To wit, the company did not generate one whit of free cashflow in that time. Even though it reported a profit of HK$13.7m, a look at free cash flow indicates it actually burnt through HK$32m in the last year. It's worth noting that IWS Group Holdings generated positive FCF of HK$45m a year ago, so at least they've done it in the past. One positive for IWS Group Holdings shareholders is that it's accrual ratio was significantly better last year, providing reason to believe that it may return to stronger cash conversion in the future. As a result, some shareholders may be looking for stronger cash conversion in the current year.
截至2024年3月底，综合环保集团的应计比率为0.39。一般规定，这不利于未来的盈利能力。即公司在此期间未能产生任何自由现金流。尽管它报告了1,370万元的利润，但查看自由现金流表明它在过去一年中实际上烧掉了3,200万元。值得注意的是，综合环保集团在一年前产生了4500万元的正自由现金流，因此至少它在过去做到了。综合环保集团股东的一个积极因素是，它的应计比率去年显着改善，这提供了理由相信它可能在未来回归更强的现金转换。因此，一些股东可能正在寻找本年度更强的现金转换。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of IWS Group Holdings.
注意：我们始终建议投资者检查资产负债表的强度。点击这里，查看我们对综合环保集团资产负债表的分析。
Our Take On IWS Group Holdings' Profit Performance
我们对综合环保集团的利润表现的看法
As we discussed above, we think IWS Group Holdings' earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that IWS Group Holdings' statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. 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. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 4 warning signs for IWS Group Holdings you should be mindful of and 2 of these can't be ignored.
正如我们上面讨论的那样，我们认为综合环保集团的盈利并不是由自由现金流支持的，这可能会引起一些投资者的关注。因此，我们认为综合环保集团的法定利润可能是其潜在盈利能力的不良指标，并可能给投资者过于积极的印象。遗憾的是，它的每股收益在过去12个月下降。总之，如果您想正确了解公司，请考虑不止以上因素。鉴于此，如果您想更多地对该公司进行分析，那么了解所涉及的风险是至关重要的。例如：我们已经发现了4个有关综合环保集团的警示信号，您应该注意其中的2个。
This note has only looked at a single factor that sheds light on the nature of IWS Group Holdings' 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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
这个注释只看了一个可以说明综合环保集团利润性质的因素。但如果您能够关注细节，就总会有更多的发现。例如，许多人认为高股本回报率是良好的商业经济的指标，而其他人则喜欢“追随资本”并搜寻内部人士购买的股票。虽然这可能需要您做一些研究，但您可能会发现这个免费的公司集合，其中包含高股本回报率的公司，或者这个持有重要股份的股票列表是有用的。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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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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