Weak Statutory Earnings May Not Tell The Whole Story For Ningbo Shimao EnergyLtd (SHSE:605028)
Weak Statutory Earnings May Not Tell The Whole Story For Ningbo Shimao EnergyLtd (SHSE:605028)
The subdued market reaction suggests that Ningbo Shimao Energy Co.,Ltd's (SHSE:605028) recent earnings didn't contain any surprises. However, we believe that investors should be aware of some underlying factors which may be of concern.
疲軟的市場反應表明,寧波世茂能源有限公司, Ltd(上海證券交易所股票代碼:605028)最近的收益沒有任何意外。但是,我們認爲,投資者應注意一些可能令人擔憂的潛在因素。
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Zooming In On Ningbo Shimao EnergyLtd's Earnings
放大寧波世茂能源有限公司的收益
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF.
用於衡量公司將其利潤轉換爲自由現金流(FCF)的情況的一個關鍵財務比率是應計比率。應計比率從給定時期的利潤中減去FCF,然後將結果除以該時間內公司的平均運營資產。該比率向我們顯示了公司的利潤超過其FCF的程度。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
這意味着負應計比率是一件好事,因爲它表明該公司帶來的自由現金流超出了其利潤所暗示的範圍。這並不意味着我們應該擔心應計比率爲正,但值得注意的是,應計比率相當高的地方。引用Lewellen和Resutek在2014年發表的一篇論文,“應計額較高的公司未來的利潤往往會降低”。
For the year to December 2023, Ningbo Shimao EnergyLtd had an accrual ratio of 0.32. Unfortunately, that means its free cash flow was a lot less than its statutory profit, which makes us doubt the utility of profit as a guide. Over the last year it actually had negative free cash flow of CN¥12m, in contrast to the aforementioned profit of CN¥188.2m. We saw that FCF was CN¥56m a year ago though, so Ningbo Shimao EnergyLtd has at least been able to generate positive FCF in the past.
在截至2023年12月的一年中,寧波世茂能源有限公司的應計比率爲0.32。不幸的是,這意味着其自由現金流遠少於其法定利潤,這使我們懷疑利潤作爲指導的效用。在過去的一年裏,它實際上有 負面的 自由現金流爲1200萬元人民幣,而上述利潤爲1.882億元人民幣。但是,我們看到一年前的FCF爲5600萬元人民幣,因此寧波世茂能源有限公司過去至少能夠產生正FCF。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Ningbo Shimao EnergyLtd.
注意:我們始終建議投資者檢查資產負債表的實力。點擊此處查看我們對寧波世茂能源有限公司的資產負債表分析。
Our Take On Ningbo Shimao EnergyLtd's Profit Performance
我們對寧波世茂能源有限公司盈利表現的看法
As we discussed above, we think Ningbo Shimao EnergyLtd's earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that Ningbo Shimao EnergyLtd's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. But at least holders can take some solace from the 17% per annum growth in EPS for the last three. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, Ningbo Shimao EnergyLtd has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
正如我們上面討論的那樣,我們認爲寧波世茂能源有限公司的收益沒有得到自由現金流的支持,這可能會讓一些投資者感到擔憂。出於這個原因,我們認爲寧波世茂能源有限公司的法定利潤可能不利於其潛在盈利能力,並可能給投資者留下過於積極的印象。但是,至少持有人可以從過去三年的每股收益每年增長17%中得到一些安慰。當然,我們只是在分析其收益時才浮出水面;人們還可以考慮利潤率、預測增長和投資回報率等因素。考慮到這一點,除非我們對風險有透徹的了解,否則我們不會考慮投資股票。例如,寧波世茂能源有限公司有 2 個警示標誌(其中一個不太適合我們)我們認爲你應該知道。
Today we've zoomed in on a single data point to better understand the nature of Ningbo Shimao EnergyLtd's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.
今天,我們放大了單一數據點,以更好地了解寧波世茂能源有限公司利潤的性質。但是,還有很多其他方法可以讓你對公司的看法。例如,許多人認爲高股本回報率是有利的商業經濟的標誌,而另一些人則喜歡 “關注資金”,尋找內部人士正在買入的股票。雖然可能需要你進行一些研究,但你可能會發現這份免費收集的擁有高股本回報率的公司,或者這份內部人士正在購買的股票清單很有用。
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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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。