Essence Information Technology's (SHSE:688555) Sluggish Earnings Might Be Just The Beginning Of Its Problems
Essence Information Technology's (SHSE:688555) Sluggish Earnings Might Be Just The Beginning Of Its Problems
Essence Information Technology Co., Ltd.'s (SHSE:688555) recent weak earnings report didn't cause a big stock movement. We think that investors are worried about some weaknesses underlying the earnings.
精華信息技術有限公司(上海證券交易所:688555)最近疲弱的收益報告並沒有導致股市大幅波動。我們認為,投資者擔心的是盈利背後的一些弱點。
Check out our latest analysis for Essence Information Technology
查看我們對Essence Information Technology的最新分析
Zooming In On Essence Information Technology's Earnings
放大Essence Information Technology的收益
Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. 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.
許多投資者都沒有聽説過現金流應計比率但它實際上是衡量一家公司在給定時期內自由現金流(FCF)支持公司利潤的程度的有用指標。簡單地説,這個比率是從淨利潤中減去FCF,然後用這個數字除以該公司在此期間的平均運營資產。這個比率告訴我們,一家公司的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. 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. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
這意味着負的應計比率是一件好事,因為它表明該公司帶來的自由現金流比其利潤所暗示的要多。雖然應計比率高於零並不令人擔憂,但我們確實認為,當一家公司的應計比率相對較高時,這一點值得注意。值得注意的是,有一些學術證據表明,一般來説,高應計比率對短期利潤來説不是一個好兆頭。
Essence Information Technology has an accrual ratio of 0.47 for the year to March 2022. Statistically speaking, that's a real negative for future earnings. And indeed, during the period the company didn't produce any free cash flow whatsoever. Even though it reported a profit of CN¥17.5m, a look at free cash flow indicates it actually burnt through CN¥237m in the last year. Coming off the back of negative free cash flow last year, we imagine some shareholders might wonder if its cash burn of CN¥237m, this year, indicates high risk.
Essence Information Technology在截至2022年3月的一年中的應計比率為0.47。從統計上講,這對未來的收益是一個真正的負面影響。事實上,在此期間,該公司沒有產生任何自由現金流。儘管該公司報告利潤為1750萬加元,但看看自由現金流就會發現,該公司去年實際上燒掉了2.37億加元。在去年自由現金流為負的背景下,我們可以想象,一些股東可能會懷疑,該公司今年2.37億加元的現金消耗是否意味着高風險。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Essence Information Technology.
注:我們總是建議投資者檢查資產負債表的實力。點擊此處進入我們對精華信息科技的資產負債表分析。
Our Take On Essence Information Technology's Profit Performance
我們對Essence Information Technology盈利表現的看法
As we discussed above, we think Essence Information Technology's earnings were not supported by free cash flow, which might concern some investors. As a result, we think it may well be the case that Essence Information Technology's underlying earnings power is lower than its statutory profit. In further bad news, its earnings per share decreased in the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about Essence Information Technology as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 4 warning signs for Essence Information Technology (of which 2 are a bit unpleasant!) you should know about.
正如我們上面討論的,我們認為Essence Information Technology的收益不是由自由現金流支持的,這可能會讓一些投資者感到擔憂。因此,我們認為,Essence Information Technology的潛在盈利能力很可能低於其法定利潤。更壞的消息是,該公司去年的每股收益有所下降。歸根結底,如果你想正確地瞭解這家公司,除了以上幾個因素之外,考慮其他因素也是至關重要的。如果你想更多地瞭解Essence Information Technology作為一項業務,意識到它所面臨的任何風險是很重要的。每家公司都有風險,我們發現了Essence Information Technology的4個警告信號(其中2個有點令人不快!)你應該知道。
This note has only looked at a single factor that sheds light on the nature of Essence Information Technology's 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 that insiders are buying.
這份報告只關注了一個因素,它揭示了Essence信息技術公司利潤的本質。但還有很多其他方式可以讓你瞭解一家公司的看法。例如,許多人認為高股本回報率是有利的商業經濟指標,而另一些人則喜歡“跟着錢走”,尋找內部人士正在買入的股票。所以你可能想看看這個免費擁有高股本回報率的公司的集合,或內部人士正在購買的這份股票清單。
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.
對這篇文章有什麼反饋嗎?擔心內容嗎?保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。