Capital Allocation Trends At Datang International Power Generation (HKG:991) Aren't Ideal
Capital Allocation Trends At Datang International Power Generation (HKG:991) Aren't Ideal
Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase? Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. So after glancing at the trends within Datang International Power Generation (HKG:991), we weren't too hopeful.
忽略公司的股價,有哪些潛在趨勢告訴我們企業已經過了增長階段?衰落的企業通常有兩個潛在趨勢,首先是衰退 返回 論資本使用率(ROCE)和下降情況 基礎 所用資本的比例。這向我們表明,該企業不僅在縮小其淨資產規模,而且其回報率也在下降。因此,在看了大唐國際發電公司(HKG: 991)的趨勢之後,我們並不抱太大希望。
Return On Capital Employed (ROCE): What Is It?
資本使用回報率(ROCE):這是什麼?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Datang International Power Generation is:
如果你以前沒有與ROCE合作過,它會衡量公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。大唐國際發電公司的計算公式爲:
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)
0.029 = CN¥6.5b ÷ (CN¥301b - CN¥78b) (Based on the trailing twelve months to September 2023).
0.029 = CN¥6.5b ¼(CN¥301b-CN¥78b) (基於截至2023年9月的過去十二個月)。
Therefore, Datang International Power Generation has an ROCE of 2.9%. In absolute terms, that's a low return and it also under-performs the Renewable Energy industry average of 6.1%.
因此,大唐國際發電的投資回報率爲2.9%。從絕對值來看,這是一個低迴報,其表現也低於可再生能源行業6.1%的平均水平。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240311/0-ecfb998d59e95ed4acf9b495baa1365e-0-510275141a6f94b7b6825054aa2c3e5b.png/big)
Historical performance is a great place to start when researching a stock so above you can see the gauge for Datang International Power Generation's ROCE against it's prior returns. If you're interested in investigating Datang International Power Generation's past further, check out this free graph covering Datang International Power Generation's past earnings, revenue and cash flow.
歷史表現是研究股票的絕佳起點,因此在上方您可以看到大唐國際發電的投資回報率與先前回報對比的指標。如果你有興趣進一步調查大唐國際發電的過去,請查看這張涵蓋大唐國際發電過去的收益、收入和現金流的免費圖表。
What The Trend Of ROCE Can Tell Us
ROCE 的趨勢能告訴我們什麼
There is reason to be cautious about Datang International Power Generation, given the returns are trending downwards. To be more specific, the ROCE was 4.9% five years ago, but since then it has dropped noticeably. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Datang International Power Generation becoming one if things continue as they have.
鑑於回報呈下降趨勢,有理由對大唐國際發電持謹慎態度。更具體地說,五年前投資回報率爲4.9%,但此後已明顯下降。同時,在此期間,該業務使用的資本基本保持不變。由於回報率下降且該企業使用的資產數量相同,這可能表明這是一家成熟的企業,在過去五年中沒有太大的增長。因此,由於這些趨勢通常不利於創建多裝袋機,因此如果事情照原樣繼續下去,我們就不會屏住呼吸希望大唐國際發電成爲一體。
What We Can Learn From Datang International Power Generation's ROCE
我們可以從大唐國際發電的ROCE中學到什麼
All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. Investors haven't taken kindly to these developments, since the stock has declined 16% from where it was five years ago. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere.
總而言之,使用相同數量的資本所產生的較低迴報並不完全是複利機器的跡象。投資者對這些事態發展並不友善,因爲該股已比五年前下跌了16%。既然如此,除非潛在趨勢恢復到更積極的軌跡,否則我們會考慮將目光投向其他地方。
One more thing to note, we've identified 2 warning signs with Datang International Power Generation and understanding these should be part of your investment process.
還有一件事需要注意,我們已經與大唐國際發電公司確定了兩個警告信號,我們知道這些信號應該是您投資過程的一部分。
While Datang International Power Generation may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
儘管大唐國際發電目前可能無法獲得最高的回報,但我們編制了一份目前股本回報率超過25%的公司名單。在這裏查看這個免費清單。
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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.
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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。