Will Weakness in Western Superconducting Technologies Co., Ltd.'s (SHSE:688122) Stock Prove Temporary Given Strong Fundamentals?
Will Weakness in Western Superconducting Technologies Co., Ltd.'s (SHSE:688122) Stock Prove Temporary Given Strong Fundamentals?
Western Superconducting Technologies (SHSE:688122) has had a rough three months with its share price down 21%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Specifically, we decided to study Western Superconducting Technologies' ROE in this article.
西方超導科技(上海證券交易所代碼:688122)經歷了艱難的三個月,其股價下跌了21%。但是,如果你密切關注,你可能會發現,鑑於市場通常會獎勵財務狀況良好的公司,其強勁的財務狀況可能意味着該股的長期價值可能會增加。具體而言,我們決定在本文中研究西方超導技術的投資回報率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回報率或投資回報率是對公司增值和管理投資者資金的有效性的考驗。換句話說,它是衡量公司股東提供的資本回報率的盈利比率。
How Do You Calculate Return On Equity?
你如何計算股本回報率?
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算:
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 Western Superconducting Technologies is:
因此,根據上述公式,西方超導技術的投資回報率爲:
12% = CN¥753m ÷ CN¥6.5b (Based on the trailing twelve months to December 2023).
12% = 7.53億元人民幣 ÷ 65億元人民幣(基於截至2023年12月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.12 in profit.
“回報” 是過去十二個月的稅後收入。另一種思考方式是,每持有價值1元人民幣的股權,該公司就能獲得0.12元人民幣的利潤。
What Has ROE Got To Do With Earnings Growth?
投資回報率與收益增長有什麼關係?
So far, we've learned that ROE is a measure of a company's profitability. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經了解到,投資回報率是衡量公司盈利能力的指標。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。假設其他一切保持不變,那麼與不一定具有這些特徵的公司相比,投資回報率和利潤保留率越高,公司的增長率就越高。
Western Superconducting Technologies' Earnings Growth And 12% ROE
西方超導科技的收益增長和12%的投資回報率
At first glance, Western Superconducting Technologies seems to have a decent ROE. On comparing with the average industry ROE of 7.0% the company's ROE looks pretty remarkable. This probably laid the ground for Western Superconducting Technologies' significant 38% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently.
乍一看,西方超導科技公司的投資回報率似乎不錯。與行業平均投資回報率7.0%相比,該公司的投資回報率看起來相當可觀。這可能爲西方超導科技在過去五年中實現38%的顯著淨收入增長奠定了基礎。我們認爲,可能還有其他方面對公司的收益增長產生積極影響。例如,該公司的派息率較低或管理效率很高。
We then compared Western Superconducting Technologies' 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 13% in the same 5-year period.
然後,我們將西部超導技術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,與同期同期13%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/7781/20240305/0-aca476c9b2049e224066090d88b1d499-0-7bcf1bb3820f0f1f742ec991f3559d55.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. 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 Western Superconducting Technologies is trading on a high P/E or a low P/E, relative to its industry.
爲公司附加價值的基礎在很大程度上與其收益增長息息相關。對於投資者來說,重要的是要知道市場是否對公司的預期收益增長(或下降)進行了定價。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。衡量預期收益增長的一個很好的指標是市盈率,它根據收益前景決定了市場願意爲股票支付的價格。因此,您可能需要檢查西方超導科技相對於其行業是高市盈率還是低市盈率。
Is Western Superconducting Technologies Making Efficient Use Of Its Profits?
西方超導技術是否在有效利用其利潤?
The three-year median payout ratio for Western Superconducting Technologies is 45%, which is moderately low. The company is retaining the remaining 55%. By the looks of it, the dividend is well covered and Western Superconducting Technologies is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
西方超導科技三年派息率中位數爲45%,略低。該公司保留了剩餘的55%。從表面上看,股息覆蓋範圍很廣,西方超導科技公司正在有效地對其利潤進行再投資,我們上面討論的其非凡增長就證明了這一點。
Moreover, Western Superconducting Technologies is determined to keep sharing its profits with shareholders which we infer from its long history of four years of paying a dividend. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 43%. Regardless, the future ROE for Western Superconducting Technologies is predicted to rise to 17% despite there being not much change expected in its payout ratio.
此外,西方超導技術公司決心繼續與股東分享利潤,這是我們從其四年支付股息的漫長曆史中推斷出來的。根據分析師的最新估計,我們發現該公司未來三年的派息率預計將穩定在43%。無論如何,儘管預計西方超導科技的派息率沒有太大變化,但其未來的投資回報率預計將升至17%。
Conclusion
結論
Overall, we are quite pleased with Western Superconducting Technologies' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總的來說,我們對西方超導技術的表現非常滿意。特別是,我們喜歡該公司對其業務進行大量再投資,而且回報率很高。毫不奇怪,這帶來了令人印象深刻的收益增長。最新的行業分析師預測顯示,預計該公司將保持目前的增長率。要詳細了解分析師對公司的最新預測,請查看該公司的分析師預測的可視化。
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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。