We Think That There Are More Issues For Hwaxin EnvironmentalLtd (SZSE:301265) Than Just Sluggish Earnings
We Think That There Are More Issues For Hwaxin EnvironmentalLtd (SZSE:301265) Than Just Sluggish Earnings
The subdued market reaction suggests that Hwaxin Environmental Co.,Ltd.'s (SZSE:301265) recent earnings didn't contain any surprises. However, we believe that investors should be aware of some underlying factors which may be of concern.
低迷的市场反应表明华信环保股份有限公司S(SZSE:301265)近期财报并不包含任何意外。然而,我们认为投资者应该意识到一些可能令人担忧的潜在因素。
Check out our latest analysis for Hwaxin EnvironmentalLtd
查看我们对华信环境有限公司的最新分析
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Zooming In On Hwaxin EnvironmentalLtd's Earnings
放大华信环境有限公司的收益
As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
正如金融书呆子们已经知道的那样,现金流应计比率是评估一家公司的自由现金流(FCF)与利润匹配程度的关键指标。简单地说,这个比率是从净利润中减去FCF,然后用这个数字除以该公司在此期间的平均运营资产。你可以把来自现金流的应计比率看作是‘非FCF利润率’。
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 it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
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。虽然应计比率为正并不是问题,这表明非现金利润达到了一定的水平,但高的应计比率可以说是一件坏事,因为它表明账面利润与现金流不匹配。这是因为一些学术研究表明,高应计制比率往往会导致较低的利润或较低的利润增长。
For the year to September 2023, Hwaxin EnvironmentalLtd had an accrual ratio of 0.22. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing. In the last twelve months it actually had negative free cash flow, with an outflow of CN¥118m despite its profit of CN¥96.4m, mentioned above. We saw that FCF was CN¥40m a year ago though, so Hwaxin EnvironmentalLtd has at least been able to generate positive FCF in the past.
在截至2023年9月的一年中,华信环境有限公司的应计比率为0.22。因此,我们知道它的自由现金流明显低于其法定利润,这很难说是一件好事。在过去的12个月里,它实际上有负面自由现金流,尽管如上所述利润为9640万元,但仍有1.18亿元的流出。我们看到一年前的FCF是4000万加元,所以华信环境有限公司至少在过去能够产生正的FCF。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Hwaxin EnvironmentalLtd.
注:我们总是建议投资者检查资产负债表的实力。点击此处查看我们对华信环境有限公司的资产负债表分析。
Our Take On Hwaxin EnvironmentalLtd's Profit Performance
我们对华信环境有限公司盈利表现的看法
Hwaxin EnvironmentalLtd didn't convert much of its profit to free cash flow in the last year, which some investors may consider rather suboptimal. Therefore, it seems possible to us that Hwaxin EnvironmentalLtd's true underlying earnings power is actually less than its statutory profit. In further bad news, its earnings per share decreased 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 while earnings quality is important, it's equally important to consider the risks facing Hwaxin EnvironmentalLtd at this point in time. Every company has risks, and we've spotted 2 warning signs for Hwaxin EnvironmentalLtd (of which 1 makes us a bit uncomfortable!) you should know about.
华信环境股份有限公司去年没有将大部分利润转化为自由现金流,一些投资者可能认为这相当不理想。因此,在我们看来,华信环境有限公司的真实潜在盈利能力实际上低于其法定利润是可能的。更坏的消息是,该公司去年的每股收益有所下降。当然,当谈到分析其收益时,我们只是触及了皮毛;人们还可以考虑利润率、预测增长和投资回报等因素。因此,尽管盈利质量很重要,但考虑到华信环境有限公司目前面临的风险也同样重要。每家公司都有风险,我们已经发现华信环境有限公司的2个警告标志(其中1个让我们有点不舒服!)你应该知道。
Today we've zoomed in on a single data point to better understand the nature of Hwaxin EnvironmentalLtd'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 that insiders are buying to be useful.
今天,我们放大了一个单一的数据点,以更好地了解华信环境有限公司的利润性质。但如果你有能力将注意力集中在细枝末节上,总会有更多的东西需要发现。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。虽然这可能需要为您做一些研究,但您可能会发现免费拥有高股本回报率的公司的集合,或者是内部人士购买的有用的股票清单。
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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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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。