Solid profit numbers didn't seem to be enough to please Shandong Zhonglu Oceanic Fisheries Company Limited's (SZSE:200992) shareholders. Our analysis has found some concerning factors which weaken the profit's foundation.
Check out our latest analysis for Shandong Zhonglu Oceanic Fisheries
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SZSE:200992 Earnings and Revenue History September 1st 2022
Zooming In On Shandong Zhonglu Oceanic Fisheries' Earnings
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. 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.
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. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
For the year to June 2022, Shandong Zhonglu Oceanic Fisheries had an accrual ratio of 0.22. Unfortunately, that means its free cash flow fell significantly short of its reported profits. Over the last year it actually had negative free cash flow of CN¥190m, in contrast to the aforementioned profit of CN¥35.5m. It's worth noting that Shandong Zhonglu Oceanic Fisheries generated positive FCF of CN¥33m a year ago, so at least they've done it in the past. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. The good news for shareholders is that Shandong Zhonglu Oceanic Fisheries' accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. As a result, some shareholders may be looking for stronger cash conversion in the current year.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Shandong Zhonglu Oceanic Fisheries.
The Impact Of Unusual Items On Profit
The fact that the company had unusual items boosting profit by CN¥12m, in the last year, probably goes some way to explain why its accrual ratio was so weak. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we crunched the numbers on thousands of publicly listed companies, we found that a boost from unusual items in a given year is often not repeated the next year. Which is hardly surprising, given the name. Shandong Zhonglu Oceanic Fisheries had a rather significant contribution from unusual items relative to its profit to June 2022. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.
Our Take On Shandong Zhonglu Oceanic Fisheries' Profit Performance
Shandong Zhonglu Oceanic Fisheries had a weak accrual ratio, but its profit did receive a boost from unusual items. For the reasons mentioned above, we think that a perfunctory glance at Shandong Zhonglu Oceanic Fisheries' statutory profits might make it look better than it really is on an underlying level. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've found that Shandong Zhonglu Oceanic Fisheries has 3 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis.
Our examination of Shandong Zhonglu Oceanic Fisheries has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. 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.
稳健的利润数字似乎不足以取悦山东中路远洋水产有限公司(SZSE:200992)股东。我们的分析发现,一些令人担忧的因素削弱了利润的基础。
查看我们对山东中路海洋渔业的最新分析
![earnings-and-revenue-history](https://usnewsfile.futunn.com/pic/0-14336004-0-9088d83efa4e482f4633576d001d5036.png/big)
深交所:200992盈利及收入历史2022年9月1日
放大山东中路海洋渔业的收入
许多投资者都没有听说过现金流应计比率但它实际上是衡量一家公司在给定时期内自由现金流(FCF)支持公司利润的程度的有用指标。应计制比率从给定期间的利润中减去FCF,然后将结果除以该时间段内公司的平均运营资产。这一比率向我们展示了一家公司的利润超过其固定现金流的程度。
这意味着负的应计比率是一件好事,因为它表明该公司带来的自由现金流比其利润所暗示的要多。虽然应计比率高于零并不令人担忧,但我们确实认为,当一家公司的应计比率相对较高时,这一点值得注意。引用勒维伦和雷苏泰克2014年的一篇论文,“应计利润较高的公司未来的利润往往较低”。
截至2022年6月的一年,山东中路海洋渔业的应计比率为0.22。不幸的是,这意味着其自由现金流远远低于其公布的利润。在过去的一年里,它实际上负面自由现金流为1.9亿元,而前述利润为3550万元。值得注意的是,山东中路海洋渔业一年前产生了3300万元的正FCF,所以至少他们过去做到了。然而,这并不是需要考虑的全部问题。我们可以看到,不寻常的项目影响了其法定利润,从而影响了应计比率。对股东来说,好消息是山东中路海洋渔业去年的应计比率要好得多,因此今年的糟糕读数可能只是利润与FCF短期错配的一个例子。因此,一些股东可能希望在本年度实现更强劲的现金转换。
注:我们总是建议投资者检查资产负债表的实力。点击这里可以看到我们对山东中路海洋渔业资产负债表的分析。
异常项目对利润的影响
该公司去年有一些不寻常的项目使利润增加了1200万加元,这一事实可能在某种程度上解释了为什么它的应计比率如此之低。虽然有更高的利润总是好事,但不寻常的东西带来的巨大贡献有时会挫伤我们的热情。当我们分析了数千家上市公司的数据时,我们发现,在给定的一年中,不寻常的项目往往会带来提振不第二年又重复了一遍。考虑到这个名字,这并不令人惊讶。山东中路海洋渔业在截至2022年6月的利润中,异常项目的贡献相当大。在其他条件不变的情况下,这可能会使法定利润成为衡量潜在盈利能力的糟糕指标。
我们如何看待山东中路海洋渔业的盈利表现
山东中路远洋渔业的应计制比率较低,但其利润确实受到了异常项目的提振。基于上述原因,我们认为,敷衍地看一眼山东中路海洋渔业的法定利润,可能会让它看起来比实际情况更好。因此,如果你想更深入地研究这只股票,考虑它面临的任何风险是至关重要的。比如,我们发现山东中路海洋渔业有3个警示标志(2不要和我们坐在一起太舒服!)在进一步分析之前,这一点值得你注意。
我们对山东中路远洋渔业的调查集中在某些因素上,这些因素可能会让它的收益看起来比实际情况更好。在此基础上,我们对此持怀疑态度。但还有很多其他方式可以让你了解一家公司的看法。例如,许多人认为高股本回报率是有利的商业经济指标,而另一些人则喜欢“跟着钱走”,寻找内部人士正在买入的股票。所以你可能想看看这个免费拥有高股本回报率的公司的集合,或内部人士正在购买的这份股票清单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。