Nanjing Iron & Steel Co., Ltd.'s (SHSE:600282) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?
Nanjing Iron & Steel Co., Ltd.'s (SHSE:600282) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?
Nanjing Iron & Steel (SHSE:600282) has had a great run on the share market with its stock up by a significant 12% over the last 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. In this article, we decided to focus on Nanjing Iron & Steel's ROE.
南京鋼鐵(SHSE:600282)在過去三個月股市表現強勁,股價上漲了顯著的12%。 然而,在本文中,我們決定關注其薄弱的基本面,因爲業務的長期財務表現最終決定了市場結果。 在本文中,我們決定關注南京鋼鐵的roe。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即淨資產收益率,是一種評估公司如何有效地從股東手中獲取投資回報的有用工具。換句話說,它是一種盈利能力比率,衡量公司股東提供的資本的回報率。
How Is ROE Calculated?
淨資產收益率怎麼計算?
The formula for return on equity is:
權益回報率的計算公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤(從持續經營中獲得)÷ 股東權益
So, based on the above formula, the ROE for Nanjing Iron & Steel is:
因此,根據上述公式,南京鋼鐵的roe爲:
8.3% = CN¥2.4b ÷ CN¥28b (Based on the trailing twelve months to March 2024).
8.3%= CN¥24億÷ CN¥280億(截至2024年3月的最新12個月)。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.08.
“回報率”是年度盈利。 因此,這意味着對於股東的每CN¥1投資,公司就會產生CN¥0.08的利潤。
Why Is ROE Important For Earnings Growth?
ROE對於盈利增長的重要性是什麼?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. 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.
到目前爲止,我們已經了解到roe衡量公司利潤產生的效率。根據公司選擇再投資或“保留”的利潤比例,我們能夠評估公司未來產生利潤的能力。其他條件相同的情況下,roe和利潤保留率均較高的公司通常比沒有這些特徵的公司成長速度更快。
A Side By Side comparison of Nanjing Iron & Steel's Earnings Growth And 8.3% ROE
南京鋼鐵盈利增長和8.3%roe的並置比較
When you first look at it, Nanjing Iron & Steel's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.4%. But then again, Nanjing Iron & Steel's five year net income shrunk at a rate of 7.5%. Remember, the company's ROE is a bit low to begin with. So that's what might be causing earnings growth to shrink.
初看之下,南京鋼鐵的roe看起來並不那麼有吸引力。 然而,更深入的研究表明,公司的roe類似於行業平均水平爲7.4%。 但是,我們需要記住,南京鋼鐵的五年淨利潤以7.5%的速度下降。 因此,公司的roe在一開始就有點低,這可能會導致收益增長下降。
That being said, we compared Nanjing Iron & Steel's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 12% in the same 5-year period.
話雖如此,我們與業界比較了南京鋼鐵的業績,並發現在同一五年時間段內,儘管該公司收益下降,但行業的收益增長了12%,這讓我們感到擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240612/0-b4422e4c1766441a76e80c97c33d1800-0-44b07a769b6b96267dc3fc02f88d7bdc.png/big)
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Nanjing Iron & Steel's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是股票估價的一個重要因素。 投資者應該嘗試確定預期的盈利增長或下降(無論哪種情況),並進行定價。 這樣,他們將了解股票是走向明朗局面還是將面臨沼澤水域。 如果你想知道南京鋼鐵的估值,請查看其市盈率的這個比較其行業的儀表。
Is Nanjing Iron & Steel Efficiently Re-investing Its Profits?
南京鋼鐵是否高效地再投資其利潤?
Nanjing Iron & Steel's declining earnings is not surprising given how the company is spending most of its profits in paying dividends, judging by its three-year median payout ratio of 67% (or a retention ratio of 33%). The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. Our risks dashboard should have the 2 risks we have identified for Nanjing Iron & Steel.
鑑於南京鋼鐵三年的中位數股息支付比率爲67%(或留存比率爲33%),其下降的盈利並不令人意外,因爲公司大部分利潤用於支付股息,業務只剩下一小部分資本進行再投資- 這是一個惡性循環,長期而言並不有利於公司。 我們的風險儀表板應該包含我們爲南京鋼鐵確定的2個風險。
Additionally, Nanjing Iron & Steel has paid dividends over a period of six years, which means that the company's management is rather focused on keeping up its dividend payments, regardless of the shrinking earnings.
此外,南京鋼鐵已經連續六年派發股息,這意味着公司管理層對保持股息支付有相當的關注,而不考慮縮小的盈利。
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
Overall, we would be extremely cautious before making any decision on Nanjing Iron & Steel. 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. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總體而言,在做出關於南京鋼鐵的任何決定之前,我們應該非常謹慎。 該公司看到利潤少,因爲保留的利潤很少,任何留存的利潤都以非常低的回報率進行再投資。 話雖如此,我們研究了最新的分析師預測,並發現儘管該公司曾經在過去收益下降,但分析師預計其未來收益將增長。 要了解有關該公司的最新分析師預測的更多信息,請查看這個公司的分析師預測可視化內容。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。