CompoSecure's (NASDAQ:CMPO) Strong Earnings Are Of Good Quality
CompoSecure's (NASDAQ:CMPO) Strong Earnings Are Of Good Quality
When companies post strong earnings, the stock generally performs well, just like CompoSecure, Inc.'s (NASDAQ:CMPO) stock has recently. We did some digging and found some further encouraging factors that investors will like.
當企業發佈強勁業績時,股票通常表現良好,就像CompoSecure,Inc.(納斯達克股票代碼:CMPO)的股票最近表現一樣。我們進行了一些調查,找到了一些令投資者感到鼓舞的因素。
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Zooming In On CompoSecure's Earnings
深入研究CompoSecure的盈利
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow.
用於衡量公司如何將其利潤轉換爲自由現金流的一個關鍵財務比率是應計比率。 簡單來說,這個比率從淨利潤中減去自由現金流,並將該數字除以該期間內公司的平均營運資產。 該比率告訴我們,公司利潤中有多少不是由自由現金流支持的。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
這意味着負責任的比率爲好事,因爲它表明公司所帶來的自由現金流比利潤所表明的要多。這並不是要暗示我們應該擔心正的負責任率,但值得注意的是,在負責任比率相當高的地方有一些學術證據表明,負責任比率高是近期利潤的一個不好的徵兆。
Over the twelve months to June 2024, CompoSecure recorded an accrual ratio of -1.13. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. In fact, it had free cash flow of US$109m in the last year, which was a lot more than its statutory profit of US$28.2m. CompoSecure's free cash flow improved over the last year, which is generally good to see.
在截至2024年6月的十二個月中,CompoSecure記錄了-1.13的應計比率。 這意味着它具有非常好的現金轉換能力,並且過去一年的收益實際上嚴重低估了其自由現金流。實際上,它在過去一年中的自由現金流爲1,0900萬美元,遠遠超過其法定利潤2,820萬美元。 CompoSecure的自由現金流在過去一年中有所改善,這通常是一個好的現象。
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
這可能會讓您想知道分析師對未來盈利能力的預測。幸運的是,您可以單擊此處查看基於其估計的未來盈利能力的互動圖表。
Our Take On CompoSecure's Profit Performance
我們對CompoSecure的盈利表現的看法
As we discussed above, CompoSecure's 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 CompoSecure's statutory profit actually understates its earnings potential! And on top of that, its earnings per share increased by 52% in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. When we did our research, we found 5 warning signs for CompoSecure (2 are a bit unpleasant!) that we believe deserve your full attention.
正如我們上面所討論的,CompoSecure的應計比率表明了其將利潤轉換爲自由現金流的強大能力,這對於公司來說是一個積極的因素。 基於這一觀察結果,我們認爲CompoSecure的法定利潤實際上低估了其盈利潛力!而且,它的每股收益在過去一年中增長了52%。當然,我們只是剛剛開始分析其盈利;除此之外,還可以考慮利潤率,預測增長率以及投資回報率等其他因素。 考慮到這一點,除非我們充分了解風險,否則我們不會考慮投資股票。 在我們的研究中,我們發現了CompoSecure出現了5個警告信號(其中有2個比較不愉快!),我們認爲這些信號值得您的全面關注。
This note has only looked at a single factor that sheds light on the nature of CompoSecure's 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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
這篇筆記只考慮了解CompoSecure盈利性質的一個因素。 但是,如果您能夠集中精力關注細節,總有更多的內容可以發現。 例如,許多人認爲高股權回報是良好的商業經濟指標,而其他人則喜歡「跟隨資金」,尋找內部人員正在購買的股票。 雖然您可能需要做一些研究,但您可能會發現這個免費的高股本回報公司的收藏夾或這個擁有重要內部人員持股的股票清單很有用。
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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。