It is hard to get excited after looking at Jiangxi JDL Environmental Protection's (SHSE:688057) recent performance, when its stock has declined 7.5% over the past week. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Jiangxi JDL Environmental Protection's ROE in this article.
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
View our latest analysis for Jiangxi JDL Environmental Protection
How To Calculate Return On Equity?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Jiangxi JDL Environmental Protection is:
12% = CN¥389m ÷ CN¥3.3b (Based on the trailing twelve months to March 2022).
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.12.
What Has ROE Got To Do With Earnings Growth?
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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
A Side By Side comparison of Jiangxi JDL Environmental Protection's Earnings Growth And 12% ROE
To begin with, Jiangxi JDL Environmental Protection seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.2%. This certainly adds some context to Jiangxi JDL Environmental Protection's exceptional 27% net income growth seen over the past five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
We then compared Jiangxi JDL Environmental Protection's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 14% in the same period.
SHSE:688057 Past Earnings Growth August 4th 2022
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. What is 688057 worth today? The intrinsic value infographic in our free research report helps visualize whether 688057 is currently mispriced by the market.
Is Jiangxi JDL Environmental Protection Making Efficient Use Of Its Profits?
The high three-year median payout ratio of 56% (implying that it keeps only 44% of profits) for Jiangxi JDL Environmental Protection suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders.
While Jiangxi JDL Environmental Protection has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend.
Summary
Overall, we are quite pleased with Jiangxi JDL Environmental Protection's performance. In particular, its high ROE is quite noteworthy and also the probable explanation behind its considerable earnings growth. Yet, the company is retaining a small portion of its profits. Which means that the company has been able to grow its earnings in spite of it, so that's not too bad. So far, we've only made a quick discussion around the company's earnings growth. You can do your own research on Jiangxi JDL Environmental Protection and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows.
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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.
看到江西京東環保(上海證券交易所股票代碼:688057)最近的表現,很難感到興奮,因為它的股票在過去一週裏下跌了7.5%。然而,股價通常是由一家公司的長期財務表現推動的,在這種情況下,這看起來相當有希望。具體地説,我們決定在本文中研究江西京東環保的淨資產收益率。
淨資產收益率,即股本回報率,是評估一家公司從股東那裏獲得投資回報的有效程度的有用工具。簡而言之,它衡量的是一家公司相對於股東權益的盈利能力。
查看我們對江西京東環保的最新分析
如何計算股本回報率?
這個淨資產收益率公式是:
股本回報率=(持續經營的)淨利潤?股東權益
因此,根據上述公式,江西京東環保的淨資產收益率為:
12%=3.89億元×33億元(以截至2022年3月的12個月為基礎)。
“回報”指的是一家公司過去一年的收益。因此,這意味着股東每投資1元人民幣,公司就會產生0.12元的利潤。
淨資產收益率與盈利增長有什麼關係?
到目前為止,我們瞭解到淨資產收益率是衡量一家公司盈利能力的指標。根據公司選擇再投資或“保留”多少利潤,我們就能夠評估一家公司未來產生利潤的能力。一般來説,在其他條件相同的情況下,股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
江西京東環保盈利增長與淨資產收益率12%的並列比較
首先,江西京東環保似乎擁有令人尊敬的淨資產收益率。此外,該公司的淨資產收益率(ROE)與行業平均水平8.2%相比相當有利。這無疑為江西京東環保在過去五年中27%的淨收入增長提供了一些背景。我們認為,可能還有其他因素在起作用。例如-高收益留存或有效的管理到位。
然後,我們將江西京東環保的淨收入增長與行業進行了比較,我們很高興地看到,與同期14%的行業增長率相比,該公司的增長數字更高。
上證所:過去688057的收益增長2022年8月4日
賦予一家公司價值的基礎在很大程度上與其盈利增長掛鈎。投資者應該嘗試確定預期的收益增長或下降是否已計入價格,無論是哪種情況。通過這樣做,他們將知道股票是將進入清澈的藍色水域,還是等待沼澤水域。今天688057的價值是多少?我們免費研究報告中的內在價值信息圖有助於直觀地瞭解688057目前是否被市場錯誤定價。
江西京東環保是否高效利用利潤?
江西京東環保的三年派息率中值為56%(這意味着它只保留了44%的利潤),這表明儘管該公司將大部分收益返還給了股東,但該公司的增長並未受到真正的阻礙。
儘管江西京東環保的盈利有所增長,但它最近才開始派發股息。最有可能的是,該公司決定用股息給新股東和現有股東留下深刻印象。
摘要
總體而言,我們對江西京東環保的表現相當滿意。特別是,其高淨資產收益率相當值得注意,也是其可觀收益增長背後的可能解釋。然而,該公司保留了一小部分利潤。這意味着,儘管如此,該公司仍能實現收益增長,所以這並不是太糟糕。到目前為止,我們只是圍繞該公司的收益增長進行了簡短的討論。你可以自己研究江西京東環保,看看它在過去的表現如何,看看這個免費的詳細圖表過去的收益、收入和現金流。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。