Lingyi iTech (Guangdong) (SZSE:002600) has had a rough three months with its share price down 8.2%. However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Lingyi iTech (Guangdong)'s ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
View our latest analysis for Lingyi iTech (Guangdong)
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 Lingyi iTech (Guangdong) is:
7.7% = CN¥1.3b ÷ CN¥16b (Based on the trailing twelve months to June 2022).
The 'return' is the profit over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.08.
What Is The Relationship Between ROE And Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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 Lingyi iTech (Guangdong)'s Earnings Growth And 7.7% ROE
On the face of it, Lingyi iTech (Guangdong)'s ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 9.0%. On the other hand, Lingyi iTech (Guangdong) reported a moderate 17% net income growth over the past five years. Considering the moderately low ROE, it is quite possible that there might be some 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.
Next, on comparing Lingyi iTech (Guangdong)'s net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 15% in the same period.
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-15796043-0-180e814a1606a0ff72278b2163265209.png/big)
SZSE:002600 Past Earnings Growth October 20th 2022
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Lingyi iTech (Guangdong)'s's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Lingyi iTech (Guangdong) Efficiently Re-investing Its Profits?
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. We infer that the company has been reinvesting all of its profits to grow its business.
Summary
On the whole, we do feel that Lingyi iTech (Guangdong) has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
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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.
靈益科技(廣東)(SZSE:002600)經歷了艱難的三個月,股價下跌了8.2%。然而,股價通常是由公司的長期財務狀況推動的,在這種情況下,財務狀況看起來相當不錯。具體地説,我們決定在本文中研究靈益科技(廣東)的淨資產收益率。
股本回報率(ROE)是用來評估公司管理層利用公司資本效率的關鍵指標。換句話説,這是一個衡量公司股東提供的資本回報率的盈利比率。
查看我們對靈益科技(廣東)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,靈益科技(廣東)的淨資產收益率為:
7.7%=13億元×160億元(基於截至2022年6月的12個月)。
“收益”是過去12個月的利潤。因此,這意味着股東每投資1元人民幣,公司就會產生0.08元的利潤。
淨資產收益率與盈利增長之間有什麼關係?
我們已經證實,淨資產收益率是一家公司未來收益的有效盈利指標。我們現在需要評估公司將多少利潤再投資或“保留”用於未來的增長,這就讓我們對公司的增長潛力有了一個瞭解。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。
靈益科技(廣東)盈利增長與淨資產收益率7.7%的對比分析
從表面上看,靈益科技(廣東)的淨資產收益率(ROE)不值一提。然而,更仔細的研究表明,該公司的ROE類似於9.0%的行業平均水平。另一方面,靈益iTech(廣東)報告稱,過去五年淨利潤温和增長17%。考慮到ROE相對較低,很可能還有其他一些方面正在積極影響公司的收益增長。例如,公司管理層做出了一些正確的戰略決策,或者公司的派息率較低。
接下來,通過將靈益iTech(廣東)的淨收入增長與行業進行比較,我們發現該公司的報告增長與同期15%的行業平均增長率相似。
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-15796043-0-180e814a1606a0ff72278b2163265209.png/big)
深圳證交所:過去002600的收益增長2022年10月20日
盈利增長是股票估值的一個重要因素。投資者下一步需要確定的是,預期的收益增長是否已經計入了股價。這樣做將有助於他們確定該股的未來看起來是光明的還是不祥的。如果你想知道靈益科技(廣東)的估值,看看它的市盈率指標,看看它與行業的對比。
靈益科技(廣東)是否有效地將利潤進行了再投資?
雖然該公司過去確實支付了一部分股息,但目前不支付股息。我們推斷,該公司一直在將所有利潤進行再投資,以發展業務。
摘要
總體而言,我們確實感覺到靈益科技(廣東)有一些積極的屬性。憑藉高再投資率,儘管淨資產收益率較低,該公司的收益實現了相當大的增長。話雖如此,但從目前分析師的預估來看,我們發現該公司的盈利勢頭有望增強。要了解更多分析師對該公司的最新預測,請查看分析師對該公司預測的可視化。
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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。