Returns On Capital Signal Tricky Times Ahead For Yantai Eddie Precision Machinery (SHSE:603638)
Returns On Capital Signal Tricky Times Ahead For Yantai Eddie Precision Machinery (SHSE:603638)
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. In light of that, when we looked at Yantai Eddie Precision Machinery (SHSE:603638) and its ROCE trend, we weren't exactly thrilled.
我們應該尋找哪些早期趨勢來確定一隻可能長期價值成倍增長的股票?首先,我們希望看到經過驗證的 返回 關於正在增加的資本使用率(ROCE),其次是擴大 基礎 已動用資本的百分比。如果你看到這一點,那通常意味着它是一家擁有良好商業模式和大量有利可圖的再投資機會的公司。有鑑於此,當我們查看煙臺艾迪精密機械(SHSE: 603638)及其投資回報率趨勢時,我們並不感到非常興奮。
Understanding Return On Capital Employed (ROCE)
了解資本使用回報率 (ROCE)
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Yantai Eddie Precision Machinery is:
如果你以前沒有與ROCE合作過,它可以衡量一家公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。煙臺艾迪精密機械的計算公式爲:
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)
0.082 = CN¥351m ÷ (CN¥5.8b - CN¥1.6b) (Based on the trailing twelve months to September 2023).
0.082 = 3.51億元人民幣 ≤(CN¥5.8b-CN¥1.6b) (基於截至2023年9月的過去十二個月)。
Thus, Yantai Eddie Precision Machinery has an ROCE of 8.2%. On its own that's a low return, but compared to the average of 6.2% generated by the Machinery industry, it's much better.
因此,煙臺艾迪精密機械的投資回報率爲8.2%。就其本身而言,回報率很低,但與機械行業6.2%的平均回報率相比,要好得多。
Check out our latest analysis for Yantai Eddie Precision Machinery
查看我們對煙臺艾迪精密機械的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231201/0-082b5fdfa90a112c757ca925b6997ac0-0-812e327fd2e5f6d2ab66ce1d16cc77e3.png/big)
Above you can see how the current ROCE for Yantai Eddie Precision Machinery compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for Yantai Eddie Precision Machinery.
上面你可以看到煙臺埃迪精密機械目前的投資回報率與之前的資本回報率相比如何,但從過去你能看出來只有很多。如果你想了解分析師對未來的預測,你應該查看我們的煙臺艾迪精密機械免費報告。
The Trend Of ROCE
ROCE 的趨勢
In terms of Yantai Eddie Precision Machinery's historical ROCE movements, the trend isn't fantastic. Around five years ago the returns on capital were 25%, but since then they've fallen to 8.2%. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It may take some time before the company starts to see any change in earnings from these investments.
就煙臺艾迪精密機械的歷史ROCE走勢而言,這種趨勢並不理想。大約五年前,資本回報率爲25%,但此後已降至8.2%。另一方面,去年,該公司一直在使用更多資金,但銷售額沒有相應改善,這可能表明這些投資是長期投資。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。
In Conclusion...
總之...
Bringing it all together, while we're somewhat encouraged by Yantai Eddie Precision Machinery's reinvestment in its own business, we're aware that returns are shrinking. Yet to long term shareholders the stock has gifted them an incredible 107% return in the last five years, so the market appears to be rosy about its future. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
綜上所述,儘管煙臺艾迪精密機械對自身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。然而,對於長期股東來說,該股在過去五年中爲他們帶來了令人難以置信的107%的回報,因此市場似乎對其未來持樂觀態度。但是,如果這些潛在趨勢的軌跡繼續下去,我們認爲它從現在開始成爲多管齊下的可能性並不高。
One more thing, we've spotted 1 warning sign facing Yantai Eddie Precision Machinery that you might find interesting.
還有一件事,我們發現煙臺艾迪精密機械正面有一個警告標誌,你可能會覺得很有趣。
While Yantai Eddie Precision Machinery isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
儘管煙臺艾迪精密機械的回報率不是最高的,但請查看這份免費清單,列出了資產負債表穩健且股本回報率高的公司。
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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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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。