Allied Machinery Co., Ltd.'s (SHSE:605060) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Allied Machinery Co., Ltd.'s (SHSE:605060) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
Allied Machinery (SHSE:605060) has had a rough three months with its share price down 27%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Allied Machinery's ROE in this article.
聯合機械(上海證券交易所代碼:605060)經歷了艱難的三個月,其股價下跌了27%。但是,仔細觀察其良好的財務狀況可能會讓你重新考慮。鑑於基本面通常會推動長期市場業績,因此該公司值得關注。具體而言,我們決定在本文中研究聯合機械的投資回報率。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。簡而言之,它衡量公司相對於股東權益的盈利能力。
How Do You Calculate Return On Equity?
你如何計算股本回報率?
The formula for return on equity is:
股本回報率的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤(來自持續經營業務)÷ 股東權益
So, based on the above formula, the ROE for Allied Machinery is:
因此,根據上述公式,盟軍機械的投資回報率爲:
12% = CN¥270m ÷ CN¥2.2b (Based on the trailing twelve months to September 2023).
12% = 2.7億元人民幣 ÷ 22億元人民幣(基於截至2023年9月的過去十二個月)。
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.12 in profit.
“回報” 是過去十二個月的稅後收入。對此進行概念化的一種方法是,該公司每擁有1元人民幣的股本即可獲得0.12元人民幣的利潤。
What Is The Relationship Between ROE And Earnings Growth?
投資回報率與收益增長之間有什麼關係?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定,投資回報率是衡量公司未來收益的有效利潤創造指標。我們現在需要評估公司爲未來增長再投資或 “保留” 了多少利潤,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。
Allied Machinery's Earnings Growth And 12% ROE
聯合機械的收益增長和12%的投資回報率
At first glance, Allied Machinery seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 7.6%. This probably laid the ground for Allied Machinery's moderate 13% net income growth seen over the past five years.
乍一看,盟軍機械的投資回報率似乎不錯。此外,該公司的投資回報率與行業平均水平的7.6%相比相當不錯。這可能爲盟軍機械在過去五年中實現13%的溫和淨收入增長奠定了基礎。
As a next step, we compared Allied Machinery's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 12% in the same period.
下一步,我們將Allied Machinery的淨收入增長與該行業進行了比較,發現與同期12%的行業平均增長率相比,該公司的增長數字相似。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240202/0-9071f68dd400c68da933f8bb25c265af-0-5085e9240bf77c77ba8585e3e7ca1166.png/big)
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Allied Machinery'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。對於投資者來說,重要的是要知道市場是否對公司的預期收益增長(或下降)進行了定價。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Allied Machinery的估值,可以看看這個衡量其與行業相比的市盈率指標。
Is Allied Machinery Making Efficient Use Of Its Profits?
盟軍機械是否在有效利用其利潤?
Allied Machinery has a three-year median payout ratio of 37%, which implies that it retains the remaining 63% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
聯合機械的三年派息率中位數爲37%,這意味着它保留了剩餘的63%的利潤。這表明其股息覆蓋範圍良好,鑑於該公司的可觀增長,管理層似乎正在有效地對其收益進行再投資。
Additionally, Allied Machinery has paid dividends over a period of three years which means that the company is pretty serious about sharing its profits with shareholders.
此外,Allied Machinery已在三年內派發了股息,這意味着該公司非常認真地與股東分享利潤。
Conclusion
結論
On the whole, we feel that Allied Machinery's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Let's not forget, business risk is also one of the factors that affects the price of the stock. So this is also an important area that investors need to pay attention to before making a decision on any business. Our risks dashboard will have the 1 risk we have identified for Allied Machinery.
總的來說,我們認爲盟軍機械的表現相當不錯。特別是,我們喜歡該公司對其業務進行大量再投資,而且回報率很高。毫不奇怪,這帶來了令人印象深刻的收益增長。考慮到每股收益如何影響長期股價,如果該公司繼續以現有方式增長收益,這可能會對其股價產生積極影響。別忘了,商業風險也是影響股票價格的因素之一。因此,這也是投資者在對任何業務做出決定之前需要注意的重要領域。我們的風險儀表板將包含我們爲盟軍機械確定的1種風險。
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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。