Declining Stock and Solid Fundamentals: Is The Market Wrong About Xiangtan Electrochemical Scientific Co.,Ltd (SZSE:002125)?
Declining Stock and Solid Fundamentals: Is The Market Wrong About Xiangtan Electrochemical Scientific Co.,Ltd (SZSE:002125)?
With its stock down 17% over the past month, it is easy to disregard Xiangtan Electrochemical ScientificLtd (SZSE:002125). But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Xiangtan Electrochemical ScientificLtd's ROE today.
隨着過去一個月股票下跌了17%,很容易忽略湘潭電化科技股份有限公司(SZSE:002125)。但是,如果你密切關注,你可能會發現其強大的財務狀況意味着該股票在長期內有可能看到價值上漲,因爲市場通常會獎勵具有良好財務狀況的公司。特別是,我們今天將關注湘潭電化科技有限公司的roe。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東權益回報率(roe)是一種關鍵指標,用於評估公司管理層如何有效利用公司資本。更簡單地說,它衡量了公司相對股東權益的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算:
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 Xiangtan Electrochemical ScientificLtd is:
因此,根據以上公式,湘潭電化科技股份有限公司的roe爲:
12% = CN¥348m ÷ CN¥2.9b (Based on the trailing twelve months to March 2024).
12%= CN¥34800萬 ÷ CN¥29億(基於截至2024年3月的最近12個月)。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.12 in profit.
「回報」是指公司在過去一年內的盈利。這意味着對於每一元股東權益,該公司創造了0.12元的利潤。
What Has ROE Got To Do With Earnings Growth?
roe與盈利增長有何關係?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經了解了roe衡量公司利潤產生效率的程度。現在我們需要評估公司爲未來增長而重新投資或「保留」的利潤數量,然後了解公司的增長潛力。假設其他一切不變,roe和利潤保留率越高,公司的增長率就越高,而與不一定具備這些特徵的公司相比,這種增長率的相對性就越高。
A Side By Side comparison of Xiangtan Electrochemical ScientificLtd's Earnings Growth And 12% ROE
湘潭電化科技有限公司的三年中位數分紅比率非常低,爲23%,意味着它還剩下77%的利潤用於再投資企業。因此,湘潭電化科技有限公司似乎正在大量重新投資利潤以發展業務,這在其盈利增長中顯現出來。
To begin with, Xiangtan Electrochemical ScientificLtd seems to have a respectable ROE. Especially when compared to the industry average of 6.3% the company's ROE looks pretty impressive. This certainly adds some context to Xiangtan Electrochemical ScientificLtd's exceptional 40% net income growth seen over the past five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
Next, on comparing with the industry net income growth, we found that Xiangtan Electrochemical ScientificLtd's growth is quite high when compared to the industry average growth of 7.9% in the same period, which is great to see.
Additionally, Xiangtan Electrochemical ScientificLtd has paid dividends over a period of five years which means that the company is pretty serious about sharing its profits with shareholders.
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240626/0-50a5bffe2f4086e55decf5b3dc4f7499-0-d9dd9db437d643f17ca33ec95c114288.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Xiangtan Electrochemical ScientificLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Xiangtan Electrochemical ScientificLtd Making Efficient Use Of Its Profits?
湘潭電化科技股份有限公司是否有效利用其利潤?
Xiangtan Electrochemical ScientificLtd has a really low three-year median payout ratio of 23%, meaning that it has the remaining 77% left over to reinvest into its business. So it looks like Xiangtan Electrochemical ScientificLtd is reinvesting profits heavily to grow its business, which shows in its earnings growth.
Alternatively, email editorial-team (at) simplywallst.com.
Additionally, Xiangtan Electrochemical ScientificLtd has paid dividends over a period of five years which means that the company is pretty serious about sharing its profits with shareholders.
此外,湘潭電化科技股份有限公司已經連續五年支付了股息,這意味着該公司正在認真與股東分享其利潤。
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。
On the whole, we feel that Xiangtan Electrochemical ScientificLtd's performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. 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. Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business. Our risks dashboard would have the 2 risks we have identified for Xiangtan Electrochemical ScientificLtd.
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.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
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。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者,也可以發送電子郵件至editorial-team@simplywallst.com