The subdued stock price reaction suggests that Shanghai Zhongyida Co., Ltd.'s (SHSE:900906) strong earnings didn't offer any surprises. Investors are probably missing some underlying factors which are encouraging for the future of the company.
See our latest analysis for Shanghai Zhongyida
![earnings-and-revenue-history](https://usnewsfile.futunn.com/pic/0-13889004-0-9ba180a4670a054d50fecc63496f978d.png/big)
SHSE:900906 Earnings and Revenue History August 19th 2022
Zooming In On Shanghai Zhongyida's Earnings
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. The ratio shows us how much a company's profit exceeds its FCF.
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.
Over the twelve months to June 2022, Shanghai Zhongyida recorded an accrual ratio of -0.11. That implies it has good cash conversion, and implies that its free cash flow solidly exceeded its profit last year. In fact, it had free cash flow of CN¥174m in the last year, which was a lot more than its statutory profit of CN¥72.0m. Shanghai Zhongyida's free cash flow improved over the last year, which is generally good to see.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Shanghai Zhongyida.
Our Take On Shanghai Zhongyida's Profit Performance
As we discussed above, Shanghai Zhongyida has perfectly satisfactory free cash flow relative to profit. Because of this, we think Shanghai Zhongyida's earnings potential is at least as good as it seems, and maybe even better! And on top of that, its earnings per share increased by 48% 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. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Case in point: We've spotted 1 warning sign for Shanghai Zhongyida you should be aware of.
Today we've zoomed in on a single data point to better understand the nature of Shanghai Zhongyida'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.
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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.
低迷的股價反應表明,上海中怡達股份有限公司(上海證券交易所:900906)強勁的收益並沒有帶來任何意外。投資者可能遺漏了一些對公司未來令人鼓舞的潛在因素。
查看我們對上海中怡達的最新分析
![earnings-and-revenue-history](https://usnewsfile.futunn.com/pic/0-13889004-0-9ba180a4670a054d50fecc63496f978d.png/big)
上海證券交易所:900906收益和收入歷史2022年8月19日
放大上海中怡達的收益
衡量一家公司將利潤轉換為自由現金流(FCF)的程度的一個關鍵財務比率是應計比率。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。這一比率向我們展示了一家公司的利潤超過其固定現金流的程度。
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。這並不意味着我們應該擔心應計比率為正,但值得注意的是,在應計比率相當高的地方。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。
截至2022年6月的12個月內,上海中怡達的應計比率為-0.11。這意味着它有很好的現金轉換率,並意味着它的自由現金流穩步超過了去年的利潤。事實上,該公司去年的自由現金流為1.74億加元,遠高於其法定利潤7200萬加元。上海中怡達的自由現金流在過去一年有所改善,總體來説是好的。
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上海中怡達資產負債表的分析。
我們對上海中怡達盈利表現的看法
如上所述,上海中怡達擁有完全令人滿意的自由現金流相對於利潤。正因為如此,我們認為上海中怡達的盈利潛力至少像看起來的那麼好,甚至可能更好!最重要的是,它的每股收益在去年增長了48%。當然,當談到分析其收益時,我們只是觸及了皮毛;人們還可以考慮利潤率、預測增長和投資回報等因素。因此,如果你想更深入地研究這隻股票,考慮它面臨的任何風險是至關重要的。一個恰當的例子:我們發現了上海中怡達1個警示標誌你應該意識到。
今天,我們放大了一個數據點,以更好地瞭解上海中怡達的利潤性質。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。
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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。