There May Be Some Bright Spots In Insteel Industries' (NYSE:IIIN) Earnings
There May Be Some Bright Spots In Insteel Industries' (NYSE:IIIN) Earnings
Investors were disappointed with the weak earnings posted by Insteel Industries, Inc. (NYSE:IIIN ). While the headline numbers were soft, we believe that investors might be missing some encouraging factors.
投資者對Insteel Industries, Inc.(紐約證券交易所代碼:IIIN)公佈的疲軟收益感到失望。儘管標題數據疲軟,但我們認爲投資者可能遺漏了一些令人鼓舞的因素。
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A Closer Look At Insteel Industries' Earnings
仔細研究Insteel Industries的收益
In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow.
在高級財務中,用於衡量公司將報告的利潤轉換爲自由現金流(FCF)的關鍵比率是應計比率(來自現金流)。爲了獲得應計比率,我們首先從一段時期的利潤中減去FCF,然後將該數字除以該期間的平均運營資產。這個比率告訴我們,一家公司的利潤中有多少沒有自由現金流的支持。
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. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. 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比其利潤所暗示的要多。雖然應計比率高於零並不令人擔憂,但我們確實認爲,當公司的應計比率相對較高時,值得注意。引用Lewellen和Resutek在2014年發表的一篇論文,“應計額較高的公司將來的利潤往往會降低”。
For the year to March 2024, Insteel Industries had an accrual ratio of -0.12. That implies it has good cash conversion, and implies that its free cash flow solidly exceeded its profit last year. In fact, it had free cash flow of US$56m in the last year, which was a lot more than its statutory profit of US$24.3m. Insteel Industries shareholders are no doubt pleased that free cash flow improved over the last twelve months.
在截至2024年3月的一年中,Insteel Industries的應計比率爲-0.12。這意味着它具有良好的現金轉化率,也意味着其去年的自由現金流穩步超過了利潤。實際上,它去年的自由現金流爲5600萬美元,遠遠超過其2430萬美元的法定利潤。毫無疑問,Insteel Industries的股東對過去十二個月中自由現金流的改善感到高興。
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
這可能會讓你想知道分析師對未來盈利能力的預測。幸運的是,您可以單擊此處查看根據他們的估計描繪未來盈利能力的交互式圖表。
Our Take On Insteel Industries' Profit Performance
我們對Insteel Industries利潤表現的看法
As we discussed above, Insteel Industries has perfectly satisfactory free cash flow relative to profit. Based on this observation, we consider it likely that Insteel Industries' statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. You'd be interested to know, that we found 1 warning sign for Insteel Industries and you'll want to know about it.
正如我們上面討論的那樣,Insteel Industries的自由現金流相對於利潤來說非常令人滿意。基於這一觀察,我們認爲Insteel Industries的法定利潤實際上可能低估了其盈利潛力!另一方面,其每股收益實際上在過去十二個月中萎縮了。歸根結底,如果你想正確地了解公司,必須考慮的不僅僅是上述因素。請記住,在分析股票時,值得注意所涉及的風險。你可能會有興趣知道,我們發現了Insteel Industries的1個警告標誌,你會想知道的。
This note has only looked at a single factor that sheds light on the nature of Insteel Industries' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. 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.
本報告僅研究了揭示Insteel Industries利潤性質的單一因素。但是,如果你能夠將注意力集中在細節上,總會有更多的事情需要發現。有些人認爲高股本回報率是優質業務的好兆頭。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.
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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。