We Think That There Are More Issues For Jiangsu Lidao New Materials (SHSE:603937) Than Just Sluggish Earnings
We Think That There Are More Issues For Jiangsu Lidao New Materials (SHSE:603937) Than Just Sluggish Earnings
The subdued market reaction suggests that Jiangsu Lidao New Materials Co., Ltd.'s (SHSE:603937) recent earnings didn't contain any surprises. Our analysis suggests that along with soft profit numbers, investors should be aware of some other underlying weaknesses in the numbers.
疲軟的市場反應表明,江蘇麗島新材料有限公司s(上海證券交易所代碼:603937)最近的收益沒有任何意外。我們的分析表明,除了疲軟的利潤數字外,投資者還應意識到這些數字中的其他一些潛在弱點。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240507/0-340849d65d707404b3bbb97e8da94e4f-0-41771c041368789f27fa33c344c3129b.png/big)
A Closer Look At Jiangsu Lidao New Materials' Earnings
仔細看看江蘇麗島新材的收益
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. This ratio tells us how much of a company's profit is not backed by free cashflow.
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。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。
Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
因此,當公司的應計比率爲負時,這實際上被認爲是一件好事,但如果其應計比率爲正,則是一件壞事。雖然正應計比率表明非現金利潤達到一定水平不是問題,但高應計比率可以說是一件壞事,因爲它表明紙面利潤與現金流不匹配。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”。
Jiangsu Lidao New Materials has an accrual ratio of 0.27 for the year to March 2024. We can therefore deduce that its free cash flow fell well short of covering its statutory profit. In the last twelve months it actually had negative free cash flow, with an outflow of CN¥309m despite its profit of CN¥53.9m, mentioned above. We also note that Jiangsu Lidao New Materials' free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of CN¥309m.
截至2024年3月的一年中,江蘇麗島新材的應計比率爲0.27。因此,我們可以推斷出其自由現金流遠不足以支付其法定利潤。在過去的十二個月裏,它實際上有 負面的 自由現金流,儘管利潤爲5,390萬元人民幣,但流出量仍爲3.09億元人民幣,如上所述。我們還注意到,去年,江蘇麗島新材的自由現金流實際上也是負的,因此我們可以理解股東是否被其3.09億元的流出所困擾。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Jiangsu Lidao New Materials.
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江蘇麗島新材料的資產負債表分析。
Our Take On Jiangsu Lidao New Materials' Profit Performance
我們對江蘇麗島新材盈利表現的看法
Jiangsu Lidao New Materials didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal. Because of this, we think that it may be that Jiangsu Lidao New Materials' statutory profits are better than its underlying earnings power. Sadly, its EPS was down over 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. So while earnings quality is important, it's equally important to consider the risks facing Jiangsu Lidao New Materials at this point in time. For example, we've found that Jiangsu Lidao New Materials has 3 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
去年,江蘇麗島新材沒有將其大部分利潤轉化爲自由現金流,一些投資者可能認爲這種情況相當不理想。正因爲如此,我們認爲可能是江蘇麗島新材的法定利潤好於其基礎盈利能力。不幸的是,在過去的十二個月中,其每股收益有所下降。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。因此,儘管收益質量很重要,但考慮江蘇麗島新材目前面臨的風險同樣重要。例如,我們發現江蘇麗島新材有 3 個警告標誌(2 個不容忽視!)在進行進一步分析之前,這值得你注意。
Today we've zoomed in on a single data point to better understand the nature of Jiangsu Lidao New Materials' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. 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. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.
今天,我們放大了單個數據點,以更好地了解江蘇麗島新材料利潤的性質。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。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。因此,你可能希望看到這份免費收藏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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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。