Suncorp Technologies' (HKG:1063) Profits Appear To Have Quality Issues
Suncorp Technologies' (HKG:1063) Profits Appear To Have Quality Issues
The recent earnings posted by Suncorp Technologies Limited (HKG:1063) were solid, but the stock didn't move as much as we expected. We believe that shareholders have noticed some concerning factors beyond the statutory profit numbers.
Suncorp Technologies Limited(HKG: 1063)最近公布的收益稳健,但该股的涨幅没有我们预期的那么大。我们认为,股东们已经注意到法定利润数字之外的一些令人担忧的因素。
Examining Cashflow Against Suncorp Technologies' Earnings
将现金流与Suncorp Technologies的收益对比
In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). 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. The ratio shows us how much a company's profit exceeds its FCF.
在高级财务中,用于衡量公司将报告的利润转换为自由现金流(FCF)的关键比率是应计比率(来自现金流)。应计比率从给定时期的利润中减去FCF,然后将结果除以该时间内公司的平均运营资产。该比率向我们显示了公司的利润超过其FCF的程度。
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. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
这意味着负应计比率是一件好事,因为它表明该公司带来的自由现金流比其利润所暗示的要多。这并不意味着我们应该担心应计比率为正,但值得注意的是,应计比率相当高的地方。值得注意的是,有一些学术证据表明,总的来说,高应计率对短期利润来说是个坏兆头。
Over the twelve months to June 2024, Suncorp Technologies recorded an accrual ratio of 0.32. Unfortunately, that means its free cash flow was a lot less than its statutory profit, which makes us doubt the utility of profit as a guide. In the last twelve months it actually had negative free cash flow, with an outflow of HK$12m despite its profit of HK$22.3m, mentioned above. We also note that Suncorp Technologies' free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of HK$12m. Having said that, there is more to the story. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. One positive for Suncorp Technologies 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.
在截至2024年6月的十二个月中,Suncorp Technologies的应计比率为0.32。不幸的是,这意味着其自由现金流远少于其法定利润,这使我们怀疑利润作为指导的效用。在过去的十二个月中,它的自由现金流实际上为负数,尽管如上所述,其利润为2230万港元,但流出量仍为1200万港元。我们还注意到,Suncorp Technologies去年的自由现金流实际上也为负数,因此我们可以理解股东是否被其1200万港元的流出所困扰。话虽如此,故事还有更多。我们可以看到,不寻常的项目影响了其法定利润,从而影响了应计比率。对Suncorp Technologies股东来说,一个积极因素是,去年的应计比率明显改善,这使人们有理由相信它将来可能会恢复更强劲的现金转换。因此,一些股东可能希望在本年度实现更强的现金转换。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Suncorp Technologies.
注意:我们始终建议投资者检查资产负债表的实力。点击此处查看我们对Suncorp Technologies的资产负债表分析。
How Do Unusual Items Influence Profit?
不寻常的物品如何影响利润?
Given the accrual ratio, it's not overly surprising that Suncorp Technologies' profit was boosted by unusual items worth HK$3.2m in the last twelve months. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. Which is hardly surprising, given the name. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is).
考虑到应计比率,在过去十二个月中,价值320万港元的不寻常项目提振了Suncorp Technologies的利润也就不足为奇了。我们不能否认更高的利润通常会让我们感到乐观,但如果利润是可持续的,我们更愿意这样做。我们统计了全球大多数上市公司的数字,不寻常的物品在自然界中很常见。考虑到这个名字,这并不奇怪。假设这些不寻常的项目在本年度不会再次出现,因此我们预计明年的利润将疲软(也就是说,在业务没有增长的情况下)。
Our Take On Suncorp Technologies' Profit Performance
我们对Suncorp Technologies利润表现的看法
Summing up, Suncorp Technologies received a nice boost to profit from unusual items, but could not match its paper profit with free cash flow. Considering all this we'd argue Suncorp Technologies' profits probably give an overly generous impression of its sustainable level of profitability. So while earnings quality is important, it's equally important to consider the risks facing Suncorp Technologies at this point in time. For example, Suncorp Technologies has 3 warning signs (and 2 which are significant) we think you should know about.
总而言之,Suncorp Technologies从不寻常的项目中获得了不错的利润提振,但其纸面利润无法与自由现金流相提并论。考虑到所有这些,我们认为Suncorp Technologies的利润可能给人一种对其可持续盈利水平的过于慷慨的印象。因此,尽管收益质量很重要,但考虑Suncorp Technologies目前面临的风险同样重要。例如,Suncorp Technologies有3个警告标志(其中2个是重要的)我们认为你应该知道的。
Our examination of Suncorp Technologies has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. 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. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
我们对Suncorp Technologies的审查侧重于某些可能使其收益看起来好于实际的因素。而且,在此基础上,我们有些怀疑。但是,如果你能够将注意力集中在细节上,总会有更多的事情需要发现。例如,许多人认为高股本回报率是有利的商业经济的标志,而另一些人则喜欢 “关注资金”,寻找内部人士正在买入的股票。因此,你可能希望看到这份拥有高股本回报率的公司的免费集合,或者这份内部所有权高的股票清单。
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.
对这篇文章有反馈吗?对内容感到担忧吗?请直接联系我们。或者,也可以发送电子邮件至编辑团队 (at) simplywallst.com。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。