Weak Statutory Earnings May Not Tell The Whole Story For Ningbo Shimao EnergyLtd (SHSE:605028)
Weak Statutory Earnings May Not Tell The Whole Story For Ningbo Shimao EnergyLtd (SHSE:605028)
The subdued market reaction suggests that Ningbo Shimao Energy Co.,Ltd's (SHSE:605028) recent earnings didn't contain any surprises. However, we believe that investors should be aware of some underlying factors which may be of concern.
疲软的市场反应表明,宁波世茂能源有限公司, Ltd(上海证券交易所股票代码:605028)最近的收益没有任何意外。但是,我们认为,投资者应注意一些可能令人担忧的潜在因素。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240327/0-1907982d0f8b1788e124abaac5a6331d-0-5338d42db82383067f2fa80721f92491.png/big)
Zooming In On Ningbo Shimao EnergyLtd's Earnings
放大宁波世茂能源有限公司的收益
One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF.
用于衡量公司将其利润转换为自由现金流(FCF)的情况的一个关键财务比率是应计比率。应计比率从给定时期的利润中减去FCF,然后将结果除以该时间内公司的平均运营资产。该比率向我们显示了公司的利润超过其FCF的程度。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future".
这意味着负应计比率是一件好事,因为它表明该公司带来的自由现金流超出了其利润所暗示的范围。这并不意味着我们应该担心应计比率为正,但值得注意的是,应计比率相当高的地方。引用Lewellen和Resutek在2014年发表的一篇论文,“应计额较高的公司未来的利润往往会降低”。
For the year to December 2023, Ningbo Shimao EnergyLtd had an accrual ratio of 0.32. Unfortunately, that means its free cash flow was a lot less than its statutory profit, which makes us doubt the utility of profit as a guide. Over the last year it actually had negative free cash flow of CN¥12m, in contrast to the aforementioned profit of CN¥188.2m. We saw that FCF was CN¥56m a year ago though, so Ningbo Shimao EnergyLtd has at least been able to generate positive FCF in the past.
在截至2023年12月的一年中,宁波世茂能源有限公司的应计比率为0.32。不幸的是,这意味着其自由现金流远少于其法定利润,这使我们怀疑利润作为指导的效用。在过去的一年里,它实际上有 负面的 自由现金流为1200万元人民币,而上述利润为1.882亿元人民币。但是,我们看到一年前的FCF为5600万元人民币,因此宁波世茂能源有限公司过去至少能够产生正FCF。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Ningbo Shimao EnergyLtd.
注意:我们始终建议投资者检查资产负债表的实力。点击此处查看我们对宁波世茂能源有限公司的资产负债表分析。
Our Take On Ningbo Shimao EnergyLtd's Profit Performance
我们对宁波世茂能源有限公司盈利表现的看法
As we discussed above, we think Ningbo Shimao EnergyLtd's earnings were not supported by free cash flow, which might concern some investors. For this reason, we think that Ningbo Shimao EnergyLtd's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. But at least holders can take some solace from the 17% per annum growth in EPS for the last three. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, Ningbo Shimao EnergyLtd has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
正如我们上面讨论的那样,我们认为宁波世茂能源有限公司的收益没有得到自由现金流的支持,这可能会让一些投资者感到担忧。出于这个原因,我们认为宁波世茂能源有限公司的法定利润可能不利于其潜在盈利能力,并可能给投资者留下过于积极的印象。但是,至少持有人可以从过去三年的每股收益每年增长17%中得到一些安慰。当然,我们只是在分析其收益时才浮出水面;人们还可以考虑利润率、预测增长和投资回报率等因素。考虑到这一点,除非我们对风险有透彻的了解,否则我们不会考虑投资股票。例如,宁波世茂能源有限公司有 2 个警示标志(其中一个不太适合我们)我们认为你应该知道。
Today we've zoomed in on a single data point to better understand the nature of Ningbo Shimao EnergyLtd's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying to be useful.
今天,我们放大了单一数据点,以更好地了解宁波世茂能源有限公司利润的性质。但是,还有很多其他方法可以让你对公司的看法。例如,许多人认为高股本回报率是有利的商业经济的标志,而另一些人则喜欢 “关注资金”,寻找内部人士正在买入的股票。虽然可能需要你进行一些研究,但你可能会发现这份免费收集的拥有高股本回报率的公司,或者这份内部人士正在购买的股票清单很有用。
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.
对这篇文章有反馈吗?对内容感到担忧?直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。