Should Weakness in Topchoice Medical Co., Inc.'s (SHSE:600763) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Topchoice Medical Co., Inc.'s (SHSE:600763) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
With its stock down 5.8% over the past week, it is easy to disregard Topchoice Medical (SHSE:600763). But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. In this article, we decided to focus on Topchoice Medical's ROE.
股票下跌了5.8%,在过去的一周内,很容易忽略通策医疗(SHSE:600763)。但是,如果您仔细留意,您可能会发现其关键财务指标看起来相当不错,这可能意味着股票在长期内有潜力上涨,因为市场通常会回报更具弹性的长期基本面。在本文中,我们决定关注通策医疗的roe。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
股东必须考虑股本回报率或ROE,因为它告诉他们公司如何有效地重新投资他们的资本。 简而言之,ROE显示每美元股东投资所产生的利润。
How To Calculate Return On Equity?
如何计算股东权益报酬率?
The formula for return on equity is:
权益回报率的计算公式是:
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 Topchoice Medical is:
那么,根据上述公式,通策医疗的roe为:
14% = CN¥587m ÷ CN¥4.3b (Based on the trailing twelve months to June 2024).
14% = CN¥58700万 ÷ CN¥43亿(基于截至2024年6月的过去十二个月)。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.14 in profit.
“回报率”是税后收益的总额,为过去12个月。一个概念方式是,对于每1元股东资本,公司的利润为0.14人民币。
What Has ROE Got To Do With Earnings Growth?
roe与盈利增长有何关系?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
我们已经意识到,ROE作为公司未来盈利的有效衡量值。根据公司重新投资或“保留”这些利润的程度,以及公司有效地运用这些利润的程度,我们就能评估公司的盈利增长潜力。假设其他所有因素保持不变,ROE和利润保留越高,增长率就会越高,相比于没有这些特点的公司,公司的增长率就会更高。
Topchoice Medical's Earnings Growth And 14% ROE
通策医疗的收益增长和14%的roe
At first glance, Topchoice Medical seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 6.4%. Yet, Topchoice Medical has posted measly growth of 4.1% over the past five years. This is generally not the case as when a company has a high rate of return it should usually also have a high earnings growth rate. We reckon that a low growth, when returns are quite high could be the result of certain circumstances like low earnings retention or poor allocation of capital.
乍看之下,通策医疗似乎有一个不错的roe。此外,该公司的roe与行业平均水平6.4%相比较相当有优势。然而,过去五年通策医疗的增长率仅为4.1%,这通常并非如此,因为当一个公司有较高的回报率时,通常也应该有高的盈利增长率。我们认为,当回报率相当高时,低增长可能是由于低盈利保留或资本配置不善等特定情况导致的。
As a next step, we compared Topchoice Medical'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 5.1% in the same period.
作为下一步,我们将通策医疗的净利润增长与行业进行了比较,遗憾的是,在同一时期,通策医疗的增长率低于行业平均增长率5.1%。
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The basis for attaching value to a company is, to a great extent, tied to its earnings growth. 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. If you're wondering about Topchoice Medical's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
为了评估一家公司的价值,公司的盈利增长在很大程度上是关键。投资者应该尽量确定预期的盈利增长或下降,无论情况如何,是否已经计入股价。通过这样做,他们将知道股票是是否走向明朗的天空还是即将陷入泥泞的水域。如果你想了解通策医疗的估值,可以查看它的市盈率与行业相比的情况。
Is Topchoice Medical Efficiently Re-investing Its Profits?
通策医疗是否有效地进行利润再投资?
Despite having a moderate three-year median payout ratio of 28% (implying that the company retains the remaining 72% of its income), Topchoice Medical's earnings growth was quite low. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
尽管通策医疗的三年平均回报率为28%(意味着公司保留了其收入的其余72%),但其盈利增长却相当低。因此,可能有一些其他原因解释了这种缺乏。例如,该业务可能处于下降状态。
Additionally, Topchoice Medical has paid dividends over a period of seven years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 7.4% over the next three years. Despite the lower expected payout ratio, the company's ROE is not expected to change by much.
此外,通策医疗在过去七年期间支付过股息,这意味着公司管理层决心支付股息,即使这意味着几乎没有盈利增长。现有分析师的估计表明,公司未来的股息支付比例预计将下降到7.4%。尽管预期的股息支付比例较低,公司的roe预计不会有很大变化。
Conclusion
结论
In total, it does look like Topchoice Medical has some positive aspects to its business. Although, we are disappointed to see a lack of growth in earnings even in spite of a high ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总的来看,通策医疗的业务确实有一些积极因素。尽管收益净利润和高再投资率都很高,但我们对收益的增长缺乏满意,甚至存在负面影响业务的外部因素。然而,最新的行业分析师预测显示公司的收益预计会加速。要了解更多关于公司的最新分析师预测,请查看这份分析师预测的可视化。
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