NCS Testing Technology Co., Ltd. (SZSE:300797) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
NCS Testing Technology Co., Ltd. (SZSE:300797) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
NCS Testing Technology (SZSE:300797) has had a rough three months with its share price down 20%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on NCS Testing Technology's ROE.
NCS測試技術(深圳證券交易所代碼:300797)經歷了艱難的三個月,其股價下跌了20%。但是,仔細觀察其穩健的財務狀況可能會讓你重新考慮。鑑於基本面通常會推動長期市場業績,因此該公司值得關注。在本文中,我們決定重點介紹NCS測試技術的投資回報率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
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。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?
Return on equity can be calculated by using the formula:
股本回報率可以使用以下公式計算:
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 NCS Testing Technology is:
因此,根據上述公式,NCS測試技術的投資回報率爲:
8.2% = CN¥84m ÷ CN¥1.0b (Based on the trailing twelve months to September 2023).
8.2% = 8400萬元人民幣 ÷ 1.0億元人民幣(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¥0.08 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,就能獲得0.08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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
我們已經確定,投資回報率是衡量公司未來收益的有效盈利指標。然後,我們能夠評估公司的收益增長潛力,具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。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 NCS Testing Technology's Earnings Growth And 8.2% ROE
NCS Testing Technology的收益增長和8.2%的投資回報率的並排比較
At first glance, NCS Testing Technology's ROE doesn't look very promising. However, the fact that the its ROE is quite higher to the industry average of 6.7% doesn't go unnoticed by us. This certainly adds some context to NCS Testing Technology's moderate 13% net income growth seen over the past five years. Bear in mind, the company does have a moderately low ROE. It is just that the industry ROE is lower. Hence there might be some other aspects that are causing earnings to grow. For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.
乍一看,NCS測試技術的投資回報率看起來並不十分樂觀。但是,其投資回報率遠高於行業平均水平的6.7%,這一事實並沒有被我們忽視。這無疑爲NCS Testing Technology在過去五年中實現的13%的溫和淨收入增長增添了一些背景信息。請記住,該公司的投資回報率確實適度低。只是行業的投資回報率較低。因此,可能還有其他一些方面導致收益增長。例如,整個行業可能正在經歷高增長階段,或者該公司的派息率很低。
We then compared NCS Testing Technology'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 2.7% in the same 5-year period.
然後,我們將NCS Testing Technology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2.7%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/7781/20240417/0-e222629f3c54912e610ba2f8b045fab1-0-53ea74ed6074fe7235cbd2cd102eb780.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. Doing so will help them establish if the stock's future looks promising or ominous. Is NCS Testing Technology fairly valued compared to other companies? These 3 valuation measures might help you decide.
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。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。與其他公司相比,NCS測試技術的估值是否合理?這3種估值指標可能會幫助您做出決定。
Is NCS Testing Technology Efficiently Re-investing Its Profits?
NCS 測試技術能否有效地將其利潤再投資?
With a three-year median payout ratio of 28% (implying that the company retains 72% of its profits), it seems that NCS Testing Technology is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.
NCS Testing Technology的三年派息率中位數爲28%(這意味着該公司保留了72%的利潤),看來正在進行有效的再投資,其收益將實現可觀的增長,並支付可觀的股息。
Moreover, NCS Testing Technology is determined to keep sharing its profits with shareholders which we infer from its long history of four years of paying a dividend.
此外,NCS Testing Technology決心繼續與股東分享利潤,這是我們從其四年支付股息的長期歷史中推斷出來的。
Conclusion
結論
Overall, we are quite pleased with NCS Testing Technology's performance. Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. To know the 2 risks we have identified for NCS Testing Technology visit our risks dashboard for free.
總的來說,我們對NCS測試技術的表現非常滿意。具體而言,我們喜歡它一直在以適度的回報率再投資其很大一部分利潤,從而實現了收益的擴張。考慮到每股收益如何影響長期股價,如果該公司繼續以現有方式增長收益,這可能會對其股價產生積極影響。請記住,股票的價格還取決於感知的風險。因此,在投資任何公司之前,投資者必須隨時了解所涉及的風險。要了解我們爲NCS測試技術確定的兩種風險,請免費訪問我們的風險儀表板。
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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。