37 Interactive Entertainment Network Technology Group's (SZSE:002555) Profits Appear To Have Quality Issues
37 Interactive Entertainment Network Technology Group's (SZSE:002555) Profits Appear To Have Quality Issues
Following the solid earnings report from 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555), the market responded by bidding up the stock price. However, we think that shareholders should be cautious as we found some worrying factors underlying the profit.
在三七互娱(股票代码:SZSE:002555)发布了稳固的盈利报告后,市场对该股票的股价进行了竞价上涨。然而,我们认为股东们应该保持谨慎,因为我们发现了一些在盈利背后存在的令人担忧的因素。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240902/0-5fff0632952827e1f905f0f8d88a061c-0-a659088a1716e25e80eea6da78968f39.png/big)
Examining Cashflow Against 37 Interactive Entertainment Network Technology Group's Earnings
检视37互娱(股票代码:SZSE:002555)的现金流与盈利的对比
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应计比率。应计比率从给定期间的自由现金流中减去利润,然后将结果除以公司在那段时间内的平均营运资产。这个比率告诉我们,公司利润中有多少不受自由现金流支持。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. 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. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
这意味着负的应计比率是一件好事,因为它表明公司带来的自由现金流比其利润所显示的更多。虽然拥有正的应计比率并不是问题,表明一定程度的非现金利润,但高应计比率可能是一件坏事,因为这表明纸面利润不能得到现金流支持。这是因为一些学术研究表明,高应计比率往往导致较低的利润或利润增长率。
For the year to June 2024, 37 Interactive Entertainment Network Technology Group had an accrual ratio of 0.21. Unfortunately, that means its free cash flow fell significantly short of its reported profits. Indeed, in the last twelve months it reported free cash flow of CN¥1.4b, which is significantly less than its profit of CN¥2.70b. 37 Interactive Entertainment Network Technology Group's free cash flow actually declined over the last year, but it may bounce back next year, since free cash flow is often more volatile than accounting profits. The good news for shareholders is that 37 Interactive Entertainment Network Technology Group's accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. As a result, some shareholders may be looking for stronger cash conversion in the current year.
截至2024年6月,37互娱(股票代码:SZSE:002555)的应计比率为0.21。不幸的是,这意味着其自由现金流明显低于其报告的利润。实际上,在过去十二个月中,它报告的自由现金流为14亿人民币,远远低于其27亿人民币的利润。37互娱的自由现金流实际上在过去一年中出现下降,但在未来可能会反弹,因为自由现金流比会计利润更加波动。股东们的好消息是,37互娱的应计比率去年要好得多,所以今年的低读数可能只是利润和自由现金流之间短期不匹配的情况。因此,一些股东可能在今年寻求更强的现金转换。
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
这可能会让您想知道分析师对未来盈利能力的预测。幸运的是,您可以单击此处查看基于其估计的未来盈利能力的互动图表。
Our Take On 37 Interactive Entertainment Network Technology Group's Profit Performance
关于三七互娱公司盈利表现的我们观点
37 Interactive Entertainment Network Technology Group's accrual ratio for the last twelve months signifies cash conversion is less than ideal, which is a negative when it comes to our view of its earnings. Therefore, it seems possible to us that 37 Interactive Entertainment Network Technology Group's true underlying earnings power is actually less than its statutory profit. But at least holders can take some solace from the 36% per annum growth in EPS for the last three. 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 37 Interactive Entertainment Network Technology Group at this point in time. For instance, we've identified 2 warning signs for 37 Interactive Entertainment Network Technology Group (1 is a bit unpleasant) you should be familiar with.
三七互娱公司过去12个月的应计比率表明资金转换效率不理想,这对我们对其盈利的看法是负面影响。因此,对我们来说,三七互娱公司真正的潜在盈利能力实际上可能不如其法定利润那么高。但至少持有者可以从过去三年每股收益增长36%的增长中获得一些安慰。最后,如果你想正确理解这家公司,必须考虑不仅仅是上述因素。因此,尽管盈利质量很重要,但同样重要的是考虑当前时点对三七互娱公司面临的风险。例如,我们已经发现三七互娱公司存在两个警示信号(其中一个有点不愉快),你应该熟悉一下。
Today we've zoomed in on a single data point to better understand the nature of 37 Interactive Entertainment Network Technology Group's profit. But there are plenty of other ways to inform your opinion of a company. 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.
今天我们聚焦于一个单一的数据点,以更好地了解三七互娱公司的利润性质。但还有很多其他方法可以了解一家公司。例如,许多人认为较高的股本回报率表明良好的商业经济性,而其他人喜欢“跟随资金”的方式,寻找内部人士正在买入的股票。虽然这可能需要你自己一点研究,但你可能会发现这些具有较高股本回报率的公司的免费收集,或者这些持有重要内部持股的股票清单有用。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
对本文有任何反馈?对内容有任何疑虑?请直接与我们联系。或者,发送电子邮件至editorial-team@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。