Is Cowealth Medical China Co.,Ltd.'s (SHSE:603122) Stock On A Downtrend As A Result Of Its Poor Financials?
Is Cowealth Medical China Co.,Ltd.'s (SHSE:603122) Stock On A Downtrend As A Result Of Its Poor Financials?
Cowealth Medical ChinaLtd (SHSE:603122) has had a rough three months with its share price down 24%. We decided to study the company's financials to determine if the downtrend will continue as the long-term performance of a company usually dictates market outcomes. In this article, we decided to focus on Cowealth Medical ChinaLtd's ROE.
Cowealth Medical ChinaLTD(上海證券交易所代碼:603122)經歷了艱難的三個月,其股價下跌了24%。我們決定研究公司的財務狀況,以確定下跌趨勢是否會繼續,因爲公司的長期表現通常決定市場業績。在本文中,我們決定重點關注合富醫療中國有限責任公司的投資回報率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。換句話說,它揭示了公司成功地將股東投資轉化爲利潤。
How Is ROE Calculated?
ROE 是如何計算的?
The formula for ROE is:
ROE 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 Cowealth Medical ChinaLtd is:
因此,根據上述公式,Cowealth Medical ChinaLTD的投資回報率爲:
6.2% = CN¥73m ÷ CN¥1.2b (Based on the trailing twelve months to September 2023).
6.2% = 7300萬元人民幣 ÷ 12億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.06 in profit.
“回報” 是每年的利潤。將其概念化的一種方法是,公司每擁有1元人民幣的股東資本,就會獲得0.06元的利潤。
What Is The Relationship Between ROE And Earnings Growth?
投資回報率與收益增長之間有什麼關係?
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。
Cowealth Medical ChinaLtd's Earnings Growth And 6.2% ROE
Cowealth Medical ChinaLtd的收益增長和6.2%的投資回報率
When you first look at it, Cowealth Medical ChinaLtd's ROE doesn't look that attractive. We then compared the company's ROE to the broader industry and were disappointed to see that the ROE is lower than the industry average of 7.9%. Thus, the low net income growth of 2.9% seen by Cowealth Medical ChinaLtd over the past five years could probably be the result of the low ROE.
當你第一次看時,Cowealth Medical ChinaLtd的投資回報率看起來並不那麼吸引人。然後,我們將該公司的投資回報率與整個行業進行了比較,但對投資回報率低於7.9%的行業平均水平感到失望。因此,Cowealth Medical ChinaLtd在過去五年中實現了2.9%的低淨收入增長,這可能是投資回報率低的結果。
We then compared Cowealth Medical ChinaLtd's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 7.0% in the same 5-year period, which is a bit concerning.
然後,我們將Cowealth Medical ChinaLTD的淨收入增長與該行業進行了比較,發現該公司的增長數字低於同期7.0%的行業平均增長率,這有點令人擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240226/0-68279e1a4d5362fa86d0b0af164a6dc1-0-b29d5a9808818ee5ce2f54ecb32a3977.png/big)
Earnings growth is an important metric to consider when valuing a stock. 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. What is 603122 worth today? The intrinsic value infographic in our free research report helps visualize whether 603122 is currently mispriced by the market.
收益增長是對股票進行估值時要考慮的重要指標。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。然後,這可以幫助他們確定股票是爲光明還是暗淡的未來而佈局。今天的603122值多少錢?我們的免費研究報告中的內在價值信息圖有助於可視化603122目前是否被市場錯誤定價。
Is Cowealth Medical ChinaLtd Using Its Retained Earnings Effectively?
Cowealth Medical ChinaLTD是否有效地使用了其留存收益?
Cowealth Medical ChinaLtd has a three-year median payout ratio of 74% (implying that it keeps only 26% of its profits), meaning that it pays out most of its profits to shareholders as dividends, and as a result, the company has seen low earnings growth.
Cowealth Medical ChinaLTD的三年派息率中位數爲74%(這意味着它僅保留了26%的利潤),這意味着它將大部分利潤作爲股息支付給股東,因此,該公司的收益增長緩慢。
In addition, Cowealth Medical ChinaLtd only recently started paying a dividend so the management must have decided the shareholders prefer dividends over earnings growth.
此外,Cowealth Medical ChinaLTD直到最近才開始派發股息,因此管理層一定已經決定股東更喜歡分紅而不是收益增長。
Conclusion
結論
On the whole, Cowealth Medical ChinaLtd's performance is quite a big let-down. 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. In brief, we think the company is risky and investors should think twice before making any final judgement on this company. You can see the 2 risks we have identified for Cowealth Medical ChinaLtd by visiting our risks dashboard for free on our platform here.
總體而言,合富醫療中國有限公司的表現相當令人失望。由於保留的利潤很少,該公司一直缺乏收益增長,無論保留的利潤很少,都以非常低的回報率進行再投資。簡而言之,我們認爲該公司存在風險,投資者在對該公司做出最終判斷之前應三思而後行。您可以訪問我們的 Cowealth Medical ChinaLtd 確定的兩種風險 風險儀表板 在我們的平台上免費使用。
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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。