Does Xuchang Yuandong Drive Shaft Co.Ltd's (SZSE:002406) Weak Fundamentals Mean That The Market Could Correct Its Share Price?
Does Xuchang Yuandong Drive Shaft Co.Ltd's (SZSE:002406) Weak Fundamentals Mean That The Market Could Correct Its Share Price?
Most readers would already be aware that Xuchang Yuandong Drive ShaftLtd's (SZSE:002406) stock increased significantly by 13% over the past three months. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. Particularly, we will be paying attention to Xuchang Yuandong Drive ShaftLtd's ROE today.
大多數讀者已經意識到,許昌遠東傳動軸有限公司(深圳證券交易所:002406)的股票在過去三個月中大幅增長了13%。但是,在本文中,我們決定重點關注其疲軟的基本面,因爲企業的長期財務表現是最終決定市場業績的因素。特別是,我們今天將關注許昌遠東傳動軸有限公司的投資回報率。
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 Do You Calculate Return On Equity?
你如何計算股本回報率?
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 Xuchang Yuandong Drive ShaftLtd is:
因此,根據上述公式,許昌遠東傳動軸有限公司的投資回報率爲:
2.3% = CN¥94m ÷ CN¥4.0b (Based on the trailing twelve months to December 2023).
2.3% = 9400萬元人民幣 ÷ 4.0億元人民幣(基於截至2023年12月的過去十二個月)。
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.02 in profit.
“回報” 是每年的利潤。另一種看法是,每持有價值1元人民幣的股權,公司就能獲得0.02元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要?
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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
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。一般而言,在其他條件相同的情況下,股本回報率和利潤留存率高的公司的增長率要高於不具有這些屬性的公司。
Xuchang Yuandong Drive ShaftLtd's Earnings Growth And 2.3% ROE
許昌遠東傳動軸有限公司的收益增長和2.3%的投資回報率
It is hard to argue that Xuchang Yuandong Drive ShaftLtd's ROE is much good in and of itself. Even when compared to the industry average of 8.0%, the ROE figure is pretty disappointing. Therefore, it might not be wrong to say that the five year net income decline of 24% seen by Xuchang Yuandong Drive ShaftLtd was possibly a result of it having a lower ROE. However, there could also be other factors causing the earnings to decline. For instance, the company has a very high payout ratio, or is faced with competitive pressures.
很難說許昌遠東傳動軸有限公司的投資回報率本身就非常好。即使與行業平均水平的8.0%相比,投資回報率的數字也相當令人失望。因此,說許昌遠東傳動軸有限公司五年淨收入下降24%可能是其投資回報率降低的結果,這可能沒有錯。但是,可能還有其他因素導致收益下降。例如,該公司的派息率非常高,或者面臨競爭壓力。
So, as a next step, we compared Xuchang Yuandong Drive ShaftLtd's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 6.2% over the last few years.
因此,下一步,我們將許昌遠東傳動軸有限公司的表現與行業進行了比較,失望地發現,儘管該公司一直在縮減收益,但該行業在過去幾年中一直以6.2%的速度增長。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240430/0-92c748f31010d65766a1f5e7ed084126-0-39484a52994def90cce142639ac1def5.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 Xuchang Yuandong Drive ShaftLtd 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,許昌遠東傳動軸有限公司的估值是否合理?這3種估值指標可能會幫助您做出決定。
Is Xuchang Yuandong Drive ShaftLtd Making Efficient Use Of Its Profits?
許昌遠東傳動軸有限公司是否在有效利用其利潤?
Xuchang Yuandong Drive ShaftLtd has a high three-year median payout ratio of 57% (that is, it is retaining 43% of its profits). This suggests that the company is paying most of its profits as dividends to its shareholders. This goes some way in explaining why its earnings have been shrinking. With only a little being reinvested into the business, earnings growth would obviously be low or non-existent. To know the 4 risks we have identified for Xuchang Yuandong Drive ShaftLtd visit our risks dashboard for free.
許昌遠東傳動軸有限公司的三年派息率中位數很高,爲57%(也就是說,它保留了43%的利潤)。這表明該公司將大部分利潤作爲股息支付給股東。這在某種程度上解釋了其收益爲何萎縮。由於只有一小部分被再投資到該業務,收益增長顯然會很低或根本不存在。要了解我們爲許昌遠東傳動軸有限公司確定的四種風險,請免費訪問我們的風險儀表板。
In addition, Xuchang Yuandong Drive ShaftLtd has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.
此外,許昌遠東傳動軸有限公司已經派發了至少十年的股息,這表明即使以業務增長爲代價,繼續支付股息對管理層來說也更爲重要。
Conclusion
結論
Overall, we would be extremely cautious before making any decision on Xuchang Yuandong Drive ShaftLtd. 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. Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals. You can do your own research on Xuchang Yuandong Drive ShaftLtd and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows.
總體而言,在就許昌遠東傳動軸有限公司做出任何決定之前,我們將非常謹慎。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。到目前爲止,我們只是通過研究公司的基本面來摸清公司過去業績的表面。你可以自己研究許昌遠東傳動軸有限公司,看看這張免費的過去收益、收入和現金流的詳細圖表,看看它過去的表現。
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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。