Should Weakness in Guangdong Decro Film New Materials Co., Ltd.'s (SZSE:001378) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Guangdong Decro Film New Materials Co., Ltd.'s (SZSE:001378) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Guangdong Decro Film New Materials (SZSE:001378) has had a rough three months with its share price down 20%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Guangdong Decro Film New Materials' ROE in this article.
广东沃特世新材料(SZSE:001378)股价在过去的3个月中下跌了20%。 然而,股价通常是由公司的长期财务状况驱动的,在这种情况下,长期财务状况看起来相当可观。 具体而言,在本文中,我们决定研究广东沃特世新材料的roe。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即净资产收益率,是一种评估公司如何有效地从股东手中获取投资回报的有用工具。换句话说,它是一种盈利能力比率,衡量公司股东提供的资本的回报率。
How Do You Calculate Return On Equity?
怎样计算ROE?
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 Guangdong Decro Film New Materials is:
因此,根据上述公式,广东沃特世新材料的roe为:
6.0% = CN¥114m ÷ CN¥1.9b (Based on the trailing twelve months to March 2024).
6.0% = CN¥11400万 ÷ CN¥19亿(截至2024年3月的过去12个月数据)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.06 in profit.
“回报”是过去十二个月税后收益。另一种思考方法是,对于每1元的股本,公司能够赚取0.06元的利润。
What Has ROE Got To Do With Earnings Growth?
roe与盈利增长有何关系?
So far, we've learned that ROE is a measure of a company's profitability. 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 all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
到目前为止,我们已经了解到roe是衡量公司盈利能力的一个指标。基于公司选择重新投资或“留存”的利润比例,我们可以评估公司未来产生利润的能力。其他因素相等的情况下,roe和利润留存率都较高的公司通常比没有这些特征的公司增长率更高。
A Side By Side comparison of Guangdong Decro Film New Materials' Earnings Growth And 6.0% ROE
广东沃特世新材料的盈利增长与6.0% ROE的并列比较。
On the face of it, Guangdong Decro Film New Materials' ROE is not much to talk about. However, given that the company's ROE is similar to the average industry ROE of 6.4%, we may spare it some thought. On the other hand, Guangdong Decro Film New Materials reported a moderate 10% net income growth over the past five years. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
看上去,广东沃特世新材料的roe并不值得一提。 然而,考虑到该公司的roe接近行业平均roe 6.4%,我们可能会多想一些。 另一方面,广东沃特世新材料的净利润在过去5年中增长了适度的10%。 考虑到roe相对较低,很可能有其他方面积极影响了公司的盈利增长。 例如,公司的管理层可能做出了一些好的战略决策,或者公司的股利支付比率较低。
As a next step, we compared Guangdong Decro Film New Materials' 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 7.8%.
作为下一步,我们将广东沃特世新材料的净利润增长与行业进行了比较,并且令人高兴的是,我们发现公司的增长高于行业平均增长7.8%。
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. 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 Guangdong Decro Film New Materials is trading on a high P/E or a low P/E, relative to its industry.
给公司附加价值的基础在很大程度上取决于其盈利增长。 对于投资者来说,知道市场是否已经对公司预期的盈利增长(或下降)定价至关重要。 这样做,他们将知道股票是朝着清澈的蓝水前进还是沼泽水域在等待。一个好的预期盈利增长指标是市盈率,它根据股票的盈利前景决定市场愿意支付的价格。 因此,你可能要检查广东沃特世新材料的市盈率是高还是低,相对于其行业。
Is Guangdong Decro Film New Materials Using Its Retained Earnings Effectively?
广东沃特世新材料是否有效利用了其留存收益?
Guangdong Decro Film New Materials has a healthy combination of a moderate three-year median payout ratio of 42% (or a retention ratio of 58%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits.
广东沃特世新材料在盈利中有一个健康的组合,即适度的三年中位数支付比率为42%(或留存比率为58%),并且在盈利增长方面有可观的增长,这意味着该公司一直在有效利用其利润。
Conclusion
结论
On the whole, we do feel that Guangdong Decro Film New Materials has some positive attributes. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. 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. You can see the 2 risks we have identified for Guangdong Decro Film New Materials by visiting our risks dashboard for free on our platform here.
总的来说,我们确实认为广东沃特世新材料具有一些积极的特征。 尽管它的投资回报率低,但该公司将其高比例的利润重新投资于业务中,毫无疑问对其高盈利增长做出了贡献。 虽然我们不会完全抛弃该公司,但我们会努力确定业务的风险,以更明智的决策来决定该公司。 您可以通过访问我们的风险仪表板免费了解我们已为广东沃特世新材料确认的2项风险,该仪表板位于我们的平台上。
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