There Are Reasons To Feel Uneasy About China East Education Holdings' (HKG:667) Returns On Capital
There Are Reasons To Feel Uneasy About China East Education Holdings' (HKG:667) Returns On Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Although, when we looked at China East Education Holdings (HKG:667), it didn't seem to tick all of these boxes.
如果你在尋找下一款多功能裝袋機時不確定從哪裏開始,那麼你應該留意一些關鍵趨勢。首先,我們想找一個正在成長的 返回 關於已用資本(ROCE),然後除此之外,還不斷增加 基礎 已動用資本的百分比。基本上,這意味着一家公司有可以繼續進行再投資的盈利計劃,這是複合機的一個特徵。但是,當我們查看中國東方教育控股公司(HKG: 667)時,它似乎並沒有勾選所有這些方框。
Understanding Return On Capital Employed (ROCE)
了解資本使用回報率 (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for China East Education Holdings, this is the formula:
如果您不確定,可以澄清一下,ROCE是評估公司從投資於其業務的資本中獲得多少稅前收入(按百分比計算)的指標。要計算中國東方教育控股的這個指標,公式如下:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)
0.049 = CN¥337m ÷ (CN¥9.3b - CN¥2.4b) (Based on the trailing twelve months to June 2023).
0.049 = cn¥3.37m ≤(CN¥9.3b-CN¥2.4b) (基於截至 2023 年 6 月的過去十二個月)。
So, China East Education Holdings has an ROCE of 4.9%. In absolute terms, that's a low return and it also under-performs the Consumer Services industry average of 11%.
因此,中國東方教育控股的投資回報率爲4.9%。從絕對值來看,這是一個低迴報,而且表現也低於消費者服務行業11%的平均水平。
View our latest analysis for China East Education Holdings
查看我們對中國東方教育控股的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231115/0-56775a630f138ec46c3ada8db38217e6-0-7b7f20abef891ab73edf336509b315c5.png/big)
In the above chart we have measured China East Education Holdings' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering China East Education Holdings here for free.
在上面的圖表中,我們對中國東方教育控股之前的投資回報率與之前的表現進行了比較,但可以說,未來更爲重要。如果你願意,你可以在這裏免費查看報道中國東方教育控股的分析師的預測。
What Can We Tell From China East Education Holdings' ROCE Trend?
我們可以從中國東方教育控股的投資回報率趨勢中分辨出什麼?
When we looked at the ROCE trend at China East Education Holdings, we didn't gain much confidence. Over the last five years, returns on capital have decreased to 4.9% from 51% five years ago. However it looks like China East Education Holdings might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It may take some time before the company starts to see any change in earnings from these investments.
當我們查看中國東方教育控股的投資回報率趨勢時,我們並沒有獲得太大的信心。在過去五年中,資本回報率從五年前的51%下降到4.9%。但是,看來中國東方教育控股可能會進行再投資以實現長期增長,因爲儘管資本使用量有所增加,但該公司的銷售在過去12個月中沒有太大變化。公司可能需要一段時間才能開始看到這些投資的收益發生任何變化。
On a related note, China East Education Holdings has decreased its current liabilities to 25% of total assets. That could partly explain why the ROCE has dropped. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE.
與此相關的是,中國東方教育控股已將其流動負債減少至總資產的25%。這可以部分解釋ROCE下降的原因。實際上,這意味着他們的供應商或短期債權人爲企業提供的資金減少了,這降低了某些風險。由於該企業基本上是用自己的資金爲更多的業務提供資金,你可能會爭辯說,這降低了企業創造投資回報的效率。
The Key Takeaway
關鍵要點
Bringing it all together, while we're somewhat encouraged by China East Education Holdings' reinvestment in its own business, we're aware that returns are shrinking. And investors may be expecting the fundamentals to get a lot worse because the stock has crashed 81% over the last three years. All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere.
綜上所述,儘管中國東方教育控股對自有業務的再投資令我們有些鼓舞,但我們意識到回報正在萎縮。投資者可能預計基本面會變得更糟,因爲該股在過去三年中暴跌了81%。總而言之,固有的趨勢並不是多袋裝箱的典型特徵,因此,如果這是你所追求的,我們認爲你在其他地方可能會有更多的運氣。
Like most companies, China East Education Holdings does come with some risks, and we've found 2 warning signs that you should be aware of.
像大多數公司一樣,中國東方教育控股確實存在一些風險,我們發現了兩個警告信號,你應該注意。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果你想尋找收益豐厚的穩健公司,可以免費查看這份資產負債表良好且股本回報率可觀的公司名單。
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