Expert Systems Holdings' (HKG:8319) Soft Earnings Don't Show The Whole Picture
Expert Systems Holdings' (HKG:8319) Soft Earnings Don't Show The Whole Picture
Expert Systems Holdings Limited's (HKG:8319) stock was strong despite it releasing a soft earnings report last week. Our analysis suggests that investors may have noticed some promising signs beyond the statutory profit figures.
儘管Expert Systems Holdings Limited(HKG:8319)上週公佈的收益報告軟弱,但其股票表現強勁。我們的分析表明,投資者可能注意到了一些超出法定利潤數字的有希望的跡象。
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Examining Cashflow Against Expert Systems Holdings' Earnings
檢查Expert Systems Holdings收益與自由現金流
As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. 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. The ratio shows us how much a company's profit exceeds its FCF.
正如金融迷們已經知道的那樣,從現金流量計算的應計比率是評估公司自由現金流(FCF)與其利潤相匹配程度的重要指標。應計比率將給定期間的FCF從利潤中減去,並將結果除以公司在該期間的平均經營資產。該比率顯示公司利潤超過其FCF的程度。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. 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. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
因此,負計提比率對公司而言是好事,而正計提比率則是壞事。雖然有正計提比率並不是問題,表明一定程度上有非現金利潤,但高計提比率可謂是壞事,因爲這表明鈔票利潤並未與現金流匹配。值得注意的是,有一些學術證據表明,高計提比率通常是近期利潤的招負跡象。
For the year to March 2024, Expert Systems Holdings had an accrual ratio of -0.47. Therefore, its statutory earnings were very significantly less than its free cashflow. In fact, it had free cash flow of HK$35m in the last year, which was a lot more than its statutory profit of HK$15.4m. Expert Systems Holdings did see its free cash flow drop year on year, which is less than ideal, like a Simpson's episode without Groundskeeper Willie.
對於2024年3月的全年,Expert Systems Holdings的應計比率爲-0.47。因此,其法定收益顯着低於其自由現金流。事實上,它在過去一年中擁有3500萬港元的自由現金流,這比其1540萬港元的法定利潤多得多。Expert Systems Holdings確實看到其自由現金流同比下降,這不太理想,就像沒有Groundskeeper Willie的Simpson集一樣。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Expert Systems Holdings.
請注意:我們始終建議投資者檢查資產負債表實力。單擊此處,以訪問我們對Expert Systems Holdings資產負債表的分析。
Our Take On Expert Systems Holdings' Profit Performance
我們對Expert Systems Holdings的利潤表現的看法
As we discussed above, Expert Systems Holdings' accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Based on this observation, we consider it possible that Expert Systems Holdings' statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you'd like to know more about Expert Systems Holdings as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 3 warning signs for Expert Systems Holdings and we think they deserve your attention.
正如我們上面討論的那樣,Expert Systems Holdings的應計比率表明其利潤轉化爲自由現金流的能力強,這對公司是積極的。基於這一觀察結果,我們認爲Expert Systems Holdings的法定利潤實際上低估了其盈利潛力!另一方面,其每股收益在過去十二個月中實際上有所下降。本文的目標是評估我們對法定收益反映公司潛力的可靠性,但還有很多事情需要考慮。如果您想了解有關Expert Systems Holdings的更多信息,重要的是要注意其面臨的任何風險。在Simply Wall St上,我們發現Expert Systems Holdings有3個警告信號,我們認爲這值得您的關注。
This note has only looked at a single factor that sheds light on the nature of Expert Systems Holdings' 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 with high insider ownership.
本注僅考慮了揭示Expert Systems Holdings利潤性質的單個因素。但是,如果您能夠關注細節,就會有更多內容可供發現。例如,許多人認爲高股本回報是有利的商業經濟指標,而其他人則喜歡「跟蹤資金」並尋找內部人購買的股票。因此,您可能希望查看具有高股本回報的公司的免費收藏,或具有高內部所有權的股票列表。
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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。