Hubei Mailyard ShareLtd's (SHSE:600107) stock is up by a considerable 42% over the past three months. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to Hubei Mailyard ShareLtd's ROE today.
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
Check out our latest analysis for Hubei Mailyard ShareLtd
How Do You Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Hubei Mailyard ShareLtd is:
2.4% = CN¥19m ÷ CN¥789m (Based on the trailing twelve months to March 2022).
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¥0.02 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 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.
Hubei Mailyard ShareLtd's Earnings Growth And 2.4% ROE
It is hard to argue that Hubei Mailyard ShareLtd's ROE is much good in and of itself. Even compared to the average industry ROE of 8.4%, the company's ROE is quite dismal. However, we we're pleasantly surprised to see that Hubei Mailyard ShareLtd grew its net income at a significant rate of 42% in the last five years. We believe that there might be 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.
As a next step, we compared Hubei Mailyard ShareLtd's 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 4.9%.
SHSE:600107 Past Earnings Growth August 16th 2022
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is Hubei Mailyard ShareLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Hubei Mailyard ShareLtd Making Efficient Use Of Its Profits?
Given that Hubei Mailyard ShareLtd doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
Conclusion
On the whole, we do feel that Hubei Mailyard ShareLtd has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. 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 1 risk we have identified for Hubei Mailyard ShareLtd by visiting our risks dashboard for free on our platform here.
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.
湖北郵品股份有限公司(上海證券交易所股票代碼：600107)的股票在過去三個月裏上漲了42%。正如大多數人都知道的那樣，基本面因素通常是長期市場價格走勢的指引，因此我們決定今天查看該公司的關鍵財務指標，以確定它們是否對最近的價格走勢起到了作用。今天，我們將特別關注湖北郵品股份有限公司的淨資產收益率。
股本回報率或淨資產收益率是股東要考慮的一個重要因素，因為它告訴他們他們的資本再投資的效率。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。
查看我們對湖北郵電股份有限公司的最新分析
你如何計算股本回報率？
股本回報率可使用以下公式計算：
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，湖北郵電股份有限公司的淨資產收益率為：
2.4%=CN元1900萬×CN元7.89億元(以截至2022年3月的12個月為基礎)。
“報税表”是過去12個月的税後收入。一種概念化的方法是，公司每擁有1元人民幣的股東資本，就會獲得0.02元人民幣的利潤。
為什麼淨資產收益率對收益增長很重要？
到目前為止，我們已經瞭解到淨資產收益率衡量的是一家公司創造利潤的效率。根據公司將這些利潤再投資或“保留”多少，以及這樣做的效率如何，我們就能夠評估一家公司的收益增長潛力。假設其他條件相同，與沒有相同特徵的公司相比，擁有更高股本回報率和更高利潤保留率的公司通常會有更高的增長率。
湖北邁亞股份有限公司盈利增長和2.4%的淨資產收益率
很難説湖北郵電股份有限公司的淨資產收益率本身就很好。即使與8.4%的行業平均淨資產收益率相比，該公司的淨資產收益率也相當慘淡。然而，令人驚喜的是，我們看到湖北郵品股份有限公司在過去五年中淨收入以42%的顯著速度增長。我們認為，可能還有其他方面正在積極影響公司的收益增長。例如，公司管理層可能做出了一些良好的戰略決策，或者公司的派息率較低。
下一步，我們將湖北郵電股份有限公司的淨收入增長與行業進行了比較，令人欣喜的是，我們發現該公司看到的增長高於行業平均4.9%的增長。
上海證券交易所：過去600107的收益增長2022年8月16日
盈利增長是股票估值的一個重要因素。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。這有助於他們確定這隻股票是為光明還是黯淡的未來做準備。與其他公司相比，湖北郵電股份有限公司的價值是否公平？這3個估值指標可能會幫助你做出決定。
湖北郵電股份有限公司是否有效利用了其利潤？
鑑於湖北郵電股份有限公司不向股東支付任何股息，我們推斷該公司一直在將所有利潤再投資於業務增長。
結論
總體而言，我們確實覺得湖北郵電股份有限公司有一些積極的屬性。儘管回報率很低，但由於對業務進行了大量再投資，該公司實現了令人印象深刻的收益增長。雖然我們不會完全解僱這家公司，但我們要做的是努力確定這項業務在公司周圍做出更明智的決定的風險有多大。您可以通過訪問我們的風險控制面板在我們的平臺上是免費的。
對這篇文章有什麼反饋嗎？擔心內容嗎？ 保持聯繫直接與我們聯繫。或者，也可以給編輯組發電子郵件，地址是implywallst.com。
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。
