Is Jiuzhitang Co., Ltd.'s (SZSE:000989) Stock On A Downtrend As A Result Of Its Poor Financials?
Is Jiuzhitang Co., Ltd.'s (SZSE:000989) Stock On A Downtrend As A Result Of Its Poor Financials?
With its stock down 13% over the past three months, it is easy to disregard Jiuzhitang (SZSE:000989). Given that stock prices are usually driven by a company's fundamentals over the long term, which in this case look pretty weak, we decided to study the company's key financial indicators. Particularly, we will be paying attention to Jiuzhitang's ROE today.
九芝堂(深交所股票代碼:000989)在過去三個月中下跌了13%,很容易被忽視。鑑於從長遠來看,股票價格通常由公司的基本面驅動,在這種情況下,基本面看起來相當疲軟,我們決定研究該公司的關鍵財務指標。特別是,我們今天將關注九芝堂的投資回報率。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回報率或投資回報率是股東要考慮的重要因素,因爲它告訴他們資本再投資的有效性。換句話說,它揭示了該公司成功地將股東投資轉化爲利潤。
View our latest analysis for Jiuzhitang
查看我們對九芝堂的最新分析
How To Calculate Return On Equity?
如何計算股本回報率?
The formula for ROE is:
投資回報率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營)÷ 股東權益
So, based on the above formula, the ROE for Jiuzhitang is:
因此,根據上述公式,九芝堂的投資回報率爲:
6.5% = CN¥255m ÷ CN¥3.9b (Based on the trailing twelve months to September 2023).
6.5% = 2.55億元人民幣 ÷ 39億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the income the business earned over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.06 in profit.
“回報” 是企業在過去一年中獲得的收入。這意味着,每獲得價值1元人民幣的股東權益,該公司就會產生0.06元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要?
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前爲止,我們已經了解到,投資回報率是衡量公司盈利能力的指標。我們現在需要評估公司再投資或 “保留” 了多少利潤以用於未來的增長,這樣我們就可以了解公司的增長潛力。假設其他一切都保持不變,那麼與不一定具有這些特徵的公司相比,投資回報率和利潤保留率越高,公司的增長率就越高。
A Side By Side comparison of Jiuzhitang's Earnings Growth And 6.5% ROE
九芝堂的收益增長和6.5%的投資回報率的並排比較
On the face of it, Jiuzhitang's ROE is not much to talk about. Next, when compared to the average industry ROE of 8.5%, the company's ROE leaves us feeling even less enthusiastic. Accordingly, Jiuzhitang's low net income growth of 2.7% over the past five years can possibly be explained by the low ROE amongst other factors.
從表面上看,九芝堂的投資回報率沒什麼好談的。接下來,與8.5%的行業平均投資回報率相比,該公司的投資回報率使我們感到不那麼熱情。因此,九芝堂在過去五年中2.7%的低淨收入增長可能是由投資回報率低等因素來解釋的。
We then compared Jiuzhitang's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 11% in the same 5-year period, which is a bit concerning.
然後,我們將九芝堂的淨收入增長與該行業進行了比較,發現該公司的增長數字低於同期11%的行業平均增長率,這有點令人擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240110/0-69512c7e0b84e03610221cc70d775603-0-673620d6d427f65303390e745958a20b.png/big)
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Jiuzhitang's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
收益增長是股票估值的重要因素。投資者接下來需要確定的是,預期的收益增長或缺乏收益是否已經包含在股價中。這樣做將幫助他們確定股票的未來是樂觀還是不祥的。如果你想知道九智堂的估值,可以看看這個衡量九智堂與行業相比的市盈率指標。
Is Jiuzhitang Using Its Retained Earnings Effectively?
九芝堂是否有效地使用了其留存收益?
Jiuzhitang has a very high three-year median payout ratio of 116%, which suggests that the company is dipping into more than just its profits to pay its dividend and that shows in its low earnings growth number. This is indicative of risk. To know the 2 risks we have identified for Jiuzhitang visit our risks dashboard for free.
九芝堂的三年派息率中位數非常高,爲116%,這表明該公司投入的不僅僅是利潤來支付股息,這體現在其低收益增長數字上。這表明存在風險。要了解我們爲九芝堂確定的兩種風險,請免費訪問我們的風險儀表板。
Additionally, Jiuzhitang has paid dividends over a period of eight years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth.
此外,九芝堂已在八年內派發了股息,這意味着即使收益增長微乎其微,公司的管理層也決心派發股息。
Conclusion
結論
On the whole, Jiuzhitang's performance is quite a big let-down. Particularly, its ROE is a huge disappointment, not to mention its lack of proper reinvestment into the business. As a result its earnings growth has also been quite disappointing. So far, we've only made a quick discussion around the company's earnings growth. So it may be worth checking this free detailed graph of Jiuzhitang's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance.
總的來說,九芝堂的表現相當令人失望。特別是,其投資回報率令人非常失望,更不用說缺乏對該業務的適當再投資了。因此,其收益增長也相當令人失望。到目前爲止,我們僅就公司的收益增長進行了簡短的討論。因此,可能值得查看九芝堂過去收益以及收入和現金流的免費詳細圖表,以更深入地了解該公司的業績。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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提供基於歷史數據和分析師預測的評論,我們的文章並非旨在提供財務建議。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,我們的分析可能不會考慮最新的價格敏感型公司公告或定性材料。華爾街只是沒有持有上述任何股票的頭寸。