Geospace Technologies' (NASDAQ:GEOS) Solid Profits Have Weak Fundamentals
Geospace Technologies' (NASDAQ:GEOS) Solid Profits Have Weak Fundamentals
Geospace Technologies Corporation (NASDAQ:GEOS) just reported some strong earnings, and the market reacted accordingly with a healthy uplift in the share price. We did some analysis and think that investors are missing some details hidden beneath the profit numbers.
Geospace Technologies Corporation (納斯達克:GEOS) 剛剛發佈了一些強大的盈利報告,市場做出了相應反應,股價有了健康的上漲。我們進行了一些分析,認爲投資者忽略了盈利數字下隱藏的一些細節。
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Zooming In On Geospace Technologies' Earnings
深入剖析Geospace Technologies的盈利情況
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. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
在高端金融領域,用來衡量公司將報告利潤轉爲自由現金流(FCF)的關鍵比率是來自現金流的應計比率。爲了得到應計比率,我們首先計算某一時期的FCF和利潤之差,然後將該數字除以該期間的平均經營資產。可以將來自現金流的應計比率視爲「非FCF獲利比率」。
As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. 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".
因此,負的應計比率對公司來說是積極的,而正的應計比率則是消極的。雖然應計比率高於零並不值得擔心,但當公司有相對較高的應計比率時,我們認爲這值得注意。引用Lewellen和Resutek 2014年的一篇論文:「應計比率較高的公司未來往往利潤較低」。
For the year to June 2024, Geospace Technologies had an accrual ratio of 0.24. Unfortunately, that means its free cash flow fell significantly short of its reported profits. Even though it reported a profit of US$10.7m, a look at free cash flow indicates it actually burnt through US$13m in the last year. We also note that Geospace Technologies' free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of US$13m.
對於 2024年6月,Geospace Technologies的應計比率爲0.24。不幸的是,這意味着自由現金流遠遠低於其報告的利潤。儘管它報告了1,070萬美元的利潤,但自由現金流的分析表明它在過去一年中實際上燒掉了1,300萬美元。我們還注意到,Geospace Technologies的自由現金流去年實際上是負值,所以我們可以理解如果股東對其1,300萬美元的流出感到困擾。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Geospace Technologies.
請注意:我們始終建議投資者檢查資產負債表的強度。點擊此處進入我們對Geospace Technologies資產負債表的分析。
Our Take On Geospace Technologies' Profit Performance
我們對Geospace Technologies的利潤表現的看法
Geospace Technologies' accrual ratio for the last twelve months signifies cash conversion is less than ideal, which is a negative when it comes to our view of its earnings. Because of this, we think that it may be that Geospace Technologies' statutory profits are better than its underlying earnings power. On the bright side, the company showed enough improvement to book a profit this year, after losing money last year. 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. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 1 warning sign with Geospace Technologies, and understanding it should be part of your investment process.
Geospace Technologies過去十二個月的應計比率表明現金轉化不是很理想,這對於我們對其盈利的看法是負面的。因此,我們認爲Geospace Technologies的法定盈利可能比其基本盈利能力更好。好的一面是,公司今年取得了足夠的進展,賺了錢,而去年則虧損。本文的目的是評估我們對法定盈利反映公司潛力的可靠程度,但還有很多要考慮的因素。請記住,當分析股票時,值得注意的風險不容忽視。在投資風險方面,我們已經發現了Geospace Technologies的1個警告信號,了解它應該是您投資過程的一部分。
Today we've zoomed in on a single data point to better understand the nature of Geospace Technologies' profit. But there are plenty of other ways to inform your opinion of a company. 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.
今天,我們放大了一個單一的數據點,以更好地了解Geospace Technologies的盈利性質。但是還有很多其他方法可以補充您對公司的意見,例如,許多人認爲高股本回報率是有利的商業經濟的指標,而另一些人則喜歡「跟隨資金」的方式,尋找內部人員正在購買的股票。因此,您可能希望查看此免費收藏高股本回報率的公司列表,或此高內部所有權股票列表。
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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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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。