China Communications Services (HKG:552) Will Be Hoping To Turn Its Returns On Capital Around
China Communications Services (HKG:552) Will Be Hoping To Turn Its Returns On Capital Around
To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, from a first glance at China Communications Services (HKG:552) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
要找到一隻多袋股票,我們應該在一家企業中尋找什麼潛在趨勢?一種常見的方法是嘗試找到一家擁有退貨已使用資本(ROCE)正在增加,同時也在增長金額已動用資本的比例。基本上,這意味著一家公司有盈利的舉措,可以繼續進行再投資,這是復合機器的一個特點。話雖如此,從第一眼看中國通信服務(HKG:552)我們不會因為回報率的趨勢而從椅子上跳起來,但讓我們更深入地看看。
Return On Capital Employed (ROCE): What Is It?
資本回報率(ROCE):它是什麼?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for China Communications Services:
如果你以前沒有使用過ROCE,它衡量的是一家公司從業務資本中獲得的“回報”(稅前利潤)。分析師對中國通信服務的計算公式是這樣的:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率=息稅前收益(EBIT)?(總資產-流動負債)
0.044 = CN¥2.0b ÷ (CN¥119b - CN¥74b) (Based on the trailing twelve months to June 2023).
0.044=CN元20億?(CN元119B-CN元740億)(根據截至2023年6月的往績12個月計算)。
Therefore, China Communications Services has an ROCE of 4.4%. Ultimately, that's a low return and it under-performs the Construction industry average of 6.5%.
所以呢,中國通信服務的淨資產收益率為4.4%。歸根結底,這是一個低迴報率,表現低於建築業6.5%的平均水準。
View our latest analysis for China Communications Services
查看我們對中國通信服務的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231025/0-27284e3621915691ee90aebd98f531b8-0-40d46a9d5ed6638277e376a507d68cc0.png/big)
Above you can see how the current ROCE for China Communications Services compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering China Communications Services here for free.
上面你可以看到中國通信服務公司目前的淨資產收益率與之前的資本回報率相比如何,但你只能從過去知道這麼多。如果您願意,您可以查看中國通信服務分析師對免費的。
So How Is China Communications Services' ROCE Trending?
那麼,中國通信服務公司的ROCE趨勢如何?
When we looked at the ROCE trend at China Communications Services, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 4.4% from 9.1% five years ago. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.
當我們在中國通信服務公司觀察ROCE趨勢時,我們並沒有獲得太多信心。過去五年,資本回報率從五年前的9.1%降至4.4%。與此同時,該公司正在利用更多資本,但這在過去12個月的銷售額方面沒有太大變化,因此這可能反映了較長期的投資。從現在開始,值得密切關注該公司的收益,看看這些投資最終是否真的為利潤做出了貢獻。
On a side note, China Communications Services' current liabilities are still rather high at 62% of total assets. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.
另外,中國通信服務公司的流動負債仍相當高,佔總資產的62%。這可能會帶來一些風險,因為該公司基本上是在相當大程度上依賴其供應商或其他類型的短期債權人運營的。雖然這不一定是一件壞事,但如果這一比例較低,它可能是有益的。
The Key Takeaway
關鍵的外賣
To conclude, we've found that China Communications Services is reinvesting in the business, but returns have been falling. Since the stock has declined 35% over the last five years, investors may not be too optimistic on this trend improving either. Therefore based on the analysis done in this article, we don't think China Communications Services has the makings of a multi-bagger.
總而言之,我們發現中國通信服務公司正在對該業務進行再投資,但回報一直在下降。由於該股在過去五年中下跌了35%,投資者對這一趨勢的改善可能也不是太樂觀。因此,根據本文的分析,我們認為中國通信服務不具備多管齊下的條件。
If you want to continue researching China Communications Services, you might be interested to know about the 1 warning sign that our analysis has discovered.
如果您想繼續研究中國通信服務,您可能有興趣瞭解一下1個個警告標誌我們的分析發現。
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
對於那些喜歡投資於穩固的公司,看看這個免費資產負債表穩健、股本回報率高的公司名單。
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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.