Should Weakness in Weima Agricultural Machinery Co.,Ltd.'s (SZSE:301533) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Should Weakness in Weima Agricultural Machinery Co.,Ltd.'s (SZSE:301533) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
Weima Agricultural MachineryLtd (SZSE:301533) has had a rough three months with its share price down 44%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Specifically, we decided to study Weima Agricultural MachineryLtd's ROE in this article.
威馬農業機械有限公司(深圳證券交易所代碼:301533)經歷了艱難的三個月,其股價下跌了44%。但是,如果你密切關注,你可能會發現其關鍵財務指標看起來相當不錯,考慮到市場通常會獎勵更具彈性的長期基本面,這可能意味着該股有可能在長期內上漲。具體而言,我們決定在本文中研究威馬農業機械有限公司的投資回報率。
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.
投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。簡而言之,它衡量公司相對於股東權益的盈利能力。
How Is ROE Calculated?
ROE 是如何計算的?
The formula for return on equity is:
股本回報率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Weima Agricultural MachineryLtd is:
因此,根據上述公式,威馬農業機械有限公司的投資回報率爲:
7.4% = CN¥82m ÷ CN¥1.1b (Based on the trailing twelve months to September 2023).
7.4% = 8.2億元人民幣 ÷ 11億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the income the business earned over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.07 in profit.
“回報” 是企業去年獲得的收入。這意味着,每持有價值1元人民幣的股東權益,該公司就會產生0.07元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. 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.
到目前爲止,我們已經了解到,投資回報率衡量的是公司創造利潤的效率。根據公司選擇將多少利潤進行再投資或 “保留”,我們便能夠評估公司未來創造利潤的能力。假設其他條件都一樣,與功能不相同的公司相比,具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。
A Side By Side comparison of Weima Agricultural MachineryLtd's Earnings Growth And 7.4% ROE
威馬農業機械有限公司的收益增長和7.4%的投資回報率的並排比較
When you first look at it, Weima Agricultural MachineryLtd's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.6%. Having said that, Weima Agricultural MachineryLtd has shown a modest net income growth of 16% over the past five years. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. For instance, the company has a low payout ratio or is being managed efficiently.
當你第一次看時,威馬農業機械有限公司的投資回報率看起來並不那麼吸引人。然而,一項更仔細的研究表明,該公司的投資回報率與行業平均水平的7.6%相似。話雖如此,威馬農業機械有限公司在過去五年中表現出16%的溫和淨收入增長。鑑於投資回報率略低,可能還有其他一些方面推動這種增長。例如,該公司的派息率較低或管理效率很高。
We then compared Weima Agricultural MachineryLtd'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 12% in the same 5-year period.
然後,我們將威馬農業機械有限公司的淨收入增長與該行業進行了比較,我們很高興地看到,與同期5年同期增長率爲12%的行業相比,該公司的增長數字更高。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240210/0-ccea42f85b91bf0638fbe32ee4361657-0-9be173b6dcd7891d252dcf9c9a5ee64d.png/big)
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. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Weima Agricultural MachineryLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增長是股票估值的重要因素。無論如何,投資者應設法確定預期的收益增長或下降是否已計入其中。通過這樣做,他們將知道股票是走向清澈的藍色海水還是沼澤水域在等着呢。與其他公司相比,威馬農業機械有限公司的估值是否合理?這3種估值指標可能會幫助您做出決定。
Is Weima Agricultural MachineryLtd Making Efficient Use Of Its Profits?
威馬農業機械有限公司是否在有效利用其利潤?
Given that Weima Agricultural MachineryLtd doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.
鑑於Weima Agricatural MachineryLtd不向其股東支付任何股息,我們推斷該公司一直在將其所有利潤再投資以發展業務。
Conclusion
結論
In total, it does look like Weima Agricultural MachineryLtd has some positive aspects to its business. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. 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. Our risks dashboard will have the 1 risk we have identified for Weima Agricultural MachineryLtd.
總的來說,威馬農業機械有限公司的業務看起來確實有一些積極的方面。儘管回報率很低,但該公司將其利潤的很大一部分再投資於業務這一事實無疑促進了其高收益增長。雖然我們不會完全解散公司,但我們要做的是努力確定業務的風險,以便在公司周圍做出更明智的決定。我們的風險儀表板將包含我們爲威馬農業機械有限公司確定的第一種風險。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。