Be Wary Of GKG Precision Machine (SZSE:301338) And Its Returns On Capital
Be Wary Of GKG Precision Machine (SZSE:301338) And Its Returns On Capital
What trends should we look for it we want to identify stocks that can multiply in value over the long term? 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. In light of that, when we looked at GKG Precision Machine (SZSE:301338) and its ROCE trend, we weren't exactly thrilled.
我們應該尋找哪些趨勢?我們想確定可以長期價值成倍增長的股票?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 所用資本的比例。基本上,這意味着公司擁有可以繼續進行再投資的盈利計劃,這是複合機器的特徵。有鑑於此,當我們研究GKG Precision Machine(深圳證券交易所代碼:301338)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. To calculate this metric for GKG Precision Machine, this is the formula:
如果你以前沒有與ROCE合作過,它會衡量公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。要計算 GKG Precision Machine 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)
0.026 = CN¥37m ÷ (CN¥2.0b - CN¥590m) (Based on the trailing twelve months to September 2023).
0.026 = 3700萬元人民幣 ÷(2.0億元人民幣-5.9億元人民幣) (基於截至2023年9月的過去十二個月)。
So, GKG Precision Machine has an ROCE of 2.6%. Ultimately, that's a low return and it under-performs the Machinery industry average of 6.0%.
因此,GKG Precision Machine的投資回報率爲2.6%。歸根結底,這是一個低迴報,其表現低於機械行業6.0%的平均水平。
Check out our latest analysis for GKG Precision Machine
查看我們對 GKG Precision Machine 的最新分析
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how GKG Precision Machine has performed in the past in other metrics, you can view this free graph of past earnings, revenue and cash flow.
雖然過去並不能代表未來,但了解一家公司的歷史表現可能會有所幫助,這就是我們上面有這張圖表的原因。如果你想在其他指標中查看GKG Precision Machine過去的表現,你可以查看這張過去收益、收入和現金流的免費圖表。
What The Trend Of ROCE Can Tell Us
ROCE 的趨勢能告訴我們什麼
In terms of GKG Precision Machine's historical ROCE movements, the trend isn't fantastic. Over the last five years, returns on capital have decreased to 2.6% from 31% five years ago. And considering revenue has dropped while employing more capital, we'd be cautious. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased.
就GKG Precision Machine的歷史ROCE走勢而言,這一趨勢並不理想。在過去五年中,資本回報率從五年前的31%下降到2.6%。考慮到在僱用更多資本的同時收入有所下降,我們會謹慎行事。如果這種情況繼續下去,你可能會看到一家試圖進行再投資以促進增長,但由於銷售額沒有增加,實際上正在失去市場份額的公司。
On a side note, GKG Precision Machine has done well to pay down its current liabilities to 29% of total assets. So we could link some of this to the decrease in ROCE. 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.
順便說一句,GKG Precision Machine在將其流動負債償還至總資產的29%方面做得很好。因此,我們可以將其中一些與投資回報率的下降聯繫起來。實際上,這意味着他們的供應商或短期債權人減少了對企業的融資,從而降低了某些風險因素。由於該企業基本上是用自己的資金爲其運營提供更多資金,因此您可能會爭辯說,這降低了企業產生投資回報率的效率。
The Bottom Line
底線
From the above analysis, we find it rather worrisome that returns on capital and sales for GKG Precision Machine have fallen, meanwhile the business is employing more capital than it was five years ago. Investors haven't taken kindly to these developments, since the stock has declined 19% from where it was year ago. With underlying trends that aren't great in these areas, we'd consider looking elsewhere.
從上述分析來看,我們發現相當令人擔憂的是,GKG Precision Machine的資本回報率和銷售額有所下降,同時該業務使用的資本比五年前還要多。投資者對這些事態發展並不友善,因爲該股比去年同期下跌了19%。由於這些領域的潛在趨勢並不理想,我們會考慮將目光投向其他地方。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for GKG Precision Machine (of which 1 is a bit concerning!) that you should know about.
由於幾乎每家公司都面臨一些風險,因此值得了解它們是什麼,我們已經發現了GKG Precision Machine的3個警告信號(其中1個有點令人擔憂!)你應該知道的。
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
對於那些喜歡投資穩健公司的人,可以查看這份資產負債表穩健和股本回報率高的公司的免費清單。
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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。