Shanghai Jin Jiang International Hotels' (SHSE:900934) stock up by 3.2% over the past week. However, in this article, we decided to focus on its weak financials, as long-term fundamentals ultimately dictate market outcomes. In this article, we decided to focus on Shanghai Jin Jiang International Hotels' ROE.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
Check out our latest analysis for Shanghai Jin Jiang International Hotels
How Do You 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 Shanghai Jin Jiang International Hotels is:
1.1% = CN¥190m ÷ CN¥17b (Based on the trailing twelve months to September 2022).
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.01 in profit.
Why Is ROE Important For Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
Shanghai Jin Jiang International Hotels' Earnings Growth And 1.1% ROE
As you can see, Shanghai Jin Jiang International Hotels' ROE looks pretty weak. Even compared to the average industry ROE of 5.1%, the company's ROE is quite dismal. For this reason, Shanghai Jin Jiang International Hotels' five year net income decline of 42% is not surprising given its lower ROE. We believe that there also might be other aspects that are negatively influencing the company's earnings prospects. For example, the business has allocated capital poorly, or that the company has a very high payout ratio.
Next, when we compared with the industry, which has shrunk its earnings at a rate of 8.9% in the same period, we still found Shanghai Jin Jiang International Hotels' performance to be quite bleak, because the company has been shrinking its earnings faster than the industry.
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-17300589-0-27bc88b0bde114e87125f2b897a9bb03.png/big)
SHSE:900934 Past Earnings Growth November 30th 2022
Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Shanghai Jin Jiang International Hotels is trading on a high P/E or a low P/E, relative to its industry.
Is Shanghai Jin Jiang International Hotels Using Its Retained Earnings Effectively?
With a high three-year median payout ratio of 53% (implying that 47% of the profits are retained), most of Shanghai Jin Jiang International Hotels' profits are being paid to shareholders, which explains the company's shrinking earnings. The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. You can see the 2 risks we have identified for Shanghai Jin Jiang International Hotels by visiting our risks dashboard for free on our platform here.
Moreover, Shanghai Jin Jiang International Hotels has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth.
Conclusion
In total, we would have a hard think before deciding on any investment action concerning Shanghai Jin Jiang International Hotels. The company has seen a lack of earnings growth as a result of retaining very little profits and whatever little it does retain, is being reinvested at a very low rate of return. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
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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.
上海錦江國際大酒店 (上海錦江國際大酒店股票代號:900934) 在過去一周上漲 3.2%。但是,在本文中,我們決定專注於其疲軟的財務狀況,因為長期基本面最終決定了市場成果。在本文中,我們決定重點關注上海錦江國際大酒店的 ROE。
股權回報率或 ROE 是一個 test 公司如何有效地提高其價值和管理投資者的資金。簡而言之,它是用來評估公司相對於其股本的盈利能力。
查看我們的上海錦江國際酒店最新分析
您如何計算權益回報率?
該 對於魚卵配方 是:
權益回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
因此,根據以上公式,上海錦江國際酒店的 ROE 為:
1.1% = 人民幣 190 萬元 ÷ 人民幣 17 億元(以截至 2022 年 9 月為止的最後十二個月計算)
「回報」是過去十二個月的利潤。概念化這一點的一種方法是,它擁有的每 1 美元股東資本,該公司賺取 0.01 美元的利潤。
為什麼 ROE 對盈利增長很重要?
我們已經確定 ROE 可作為公司未來收益的有效創造利潤計量。根據公司選擇再投資或「保留」的利潤,我們可以評估公司未來產生利潤的能力。一般來說,其他事情是平等的,具有較高的股權回報率和利潤保留率的公司比不共享這些屬性的公司具有更高的增長率。
上海錦江國際大酒店盈利增長率同比增長 1.1%
正如你所看到的,上海錦江國際大酒店的 ROE 看起來相當弱。即使與 5.1% 的平均行業 ROE 相比,該公司的 ROE 也非常令人沮喪。出於這個原因,上海錦江國際大酒店的五年淨收入下降 42% 並不奇怪,因為其回報率較低。我們認為,也可能還有其他方面對公司的盈利前景產生負面影響。例如,企業分配資本不佳,或者該公司具有非常高的支付比率。
接下來,當我們與同期盈利縮水 8.9% 的行業相比,我們仍然發現上海錦江國際大酒店的業績相當黯淡,因為公司收益的縮水速度比行業快。
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-17300589-0-27bc88b0bde114e87125f2b897a9bb03.png/big)
上證券代表:900934 過往盈利增長 2022 年十一月三十日
盈利增長是估值股票時要考慮的重要指標。投資者接下來需要確定的是預期盈利增長或缺乏盈利是否已經內置於股價中。通過這樣做,他們將有一個想法,如果股票進入清澈的藍色海水或沼澤的水域等待。預期盈利增長的一個很好的指標是市盈率,該比率決定了市場願意根據股票的盈利前景支付的價格。因此,您可能需要檢查一下上海錦江國際大酒店相對於其行業的市盈率高還是低價/E。
上海錦江國際酒店是否有效利用其保留盈餘?
上海錦江國際大酒店(上海錦江國際大酒店)的三年中位數派息率高達 53%(意味著保留了 47% 的利潤),大部分利潤都支付給股東,這解釋了公司盈利萎縮的情況。該業務只剩下一小部分資金進行再投資-從長遠來看,這種惡性循環不會使公司受益。您可以造訪我們,查看我們在上海錦江國際酒店發現的 2 個風險 風險儀表板 在我們的平台上免費在這裡。
此外,上海錦江國際酒店已經派息至少十年或更長時間,這表明管理層必須認為股東更喜歡股息而不是盈利增長。
结论
總的來說,在決定任何有關上海錦江國際酒店的投資行動之前,我們會有一個艱難的思考。由於保留了很少的利潤,而保留了很少的利潤,無論保留的很少,該公司的盈利增長都不會以非常低的回報率進行再投資。話雖如此,我們研究了最新的分析師預測,發現雖然該公司過去收益縮小了,但分析師預計其收益將在未來增長。要了解更多有關公司未來盈利增長預測的信息,請看這篇 自由 報告分析師對公司的預測,以了解更多。
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這篇文章由簡單牆聖是一般性質. 我們僅使用公正的方法,根據歷史數據和分析師預測提供評論,我們的文章並不打算作為財務建議。 它並不構成購買或出售任何股票的建議,也不會考慮您的目標或您的財務狀況。我們的目標是為您帶來由基本數據驅動的長期集中分析。請注意,我們的分析可能不會考慮最新的價格敏感公司公告或定性材料。簡易華街在提及的任何股票中都沒有倉位。