Does The Market Have A Low Tolerance For Shandong Sito Bio-technology Co., Ltd.'s (SZSE:300583) Mixed Fundamentals?
Does The Market Have A Low Tolerance For Shandong Sito Bio-technology Co., Ltd.'s (SZSE:300583) Mixed Fundamentals?
With its stock down 24% over the past three months, it is easy to disregard Shandong Sito Bio-technology (SZSE:300583). It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. In this article, we decided to focus on Shandong Sito Bio-technology's ROE.
山东赛托生物科技(深交所股票代码:300583)在过去三个月中下跌了24%,这很容易被忽视。市场可能忽视了该公司不同的财务状况,决定倾向于负面情绪。股票价格通常由公司的长期财务业绩驱动,因此我们决定更多地关注公司的财务业绩。在这篇文章中,我们决定重点关注山东赛托生物科技的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。简而言之,它衡量公司相对于股东权益的盈利能力。
How Do You Calculate Return On Equity?
你如何计算股本回报率?
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Shandong Sito Bio-technology is:
因此,根据上述公式,山东赛托生物科技的投资回报率为:
3.4% = CN¥71m ÷ CN¥2.1b (Based on the trailing twelve months to September 2023).
3.4% = 7.1亿元人民币 ¥210亿元人民币(基于截至2023年9月的过去十二个月)。
The 'return' is the yearly profit. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.03.
“回报” 是每年的利润。因此,这意味着其股东每投资1元人民币,公司就会产生0.03CN的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
我们已经确定,投资回报率是衡量公司未来收益的有效盈利指标。根据公司选择将多少利润进行再投资或 “保留”,我们便能够评估公司未来创造利润的能力。一般而言,在其他条件相同的情况下,股本回报率和利润留存率高的公司的增长率要高于不具有这些属性的公司。
A Side By Side comparison of Shandong Sito Bio-technology's Earnings Growth And 3.4% ROE
山东赛托生物科技的收益增长和3.4%的投资回报率的并排比较
It is hard to argue that Shandong Sito Bio-technology's ROE is much good in and of itself. Not just that, even compared to the industry average of 8.3%, the company's ROE is entirely unremarkable. Therefore, it might not be wrong to say that the five year net income decline of 15% seen by Shandong Sito Bio-technology was possibly a result of it having a lower ROE. We reckon that there could also be other factors at play here. Such as - low earnings retention or poor allocation of capital.
很难说山东赛托生物科技的投资回报率本身就非常好。不仅如此,即使与行业平均水平的8.3%相比,该公司的投资回报率也完全不引人注目。因此,说山东赛托生物科技五年净收入下降15%可能是其投资回报率降低的结果,这可能没有错。我们认为,这里可能还有其他因素在起作用。例如-收益保留率低或资本配置不佳。
However, when we compared Shandong Sito Bio-technology's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 11% in the same period. This is quite worrisome.
但是,当我们将山东赛托生物科技的增长与行业的增长进行比较时,我们发现,尽管该公司的收益一直在萎缩,但同期该行业的收益增长了11%。这非常令人担忧。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240329/0-919cb7b56a95c9a4577b96ec7f4d255b-0-bd4fc663b59b792be906127898b5db2b.png/big)
Earnings growth is an important metric to consider when valuing a stock. 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. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Shandong Sito Bio-technology is trading on a high P/E or a low P/E, relative to its industry.
收益增长是对股票进行估值时要考虑的重要指标。投资者接下来需要确定的是,预期的收益增长或缺乏收益是否已经包含在股价中。这样做将帮助他们确定股票的未来是乐观还是不祥的。衡量预期收益增长的一个很好的指标是市盈率,它根据收益前景决定了市场愿意为股票支付的价格。因此,您可能需要检查山东赛托生物科技相对于其行业是高市盈率还是低市盈率。
Is Shandong Sito Bio-technology Efficiently Re-investing Its Profits?
山东赛托生物科技是否有效地将其利润再投资?
Shandong Sito Bio-technology's low three-year median payout ratio of 3.3% (or a retention ratio of 97%) over the last three years should mean that the company is retaining most of its earnings to fuel its growth but the company's earnings have actually shrunk. The low payout should mean that the company is retaining most of its earnings and consequently, should see some growth. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
山东赛托生物科技在过去三年中创下了3.3%(或97%的留存率)的低三年中位数,这应该意味着该公司保留了大部分收益来推动增长,但该公司的收益实际上已经萎缩。低支出应意味着该公司保留了大部分收益,因此应该会出现一些增长。看来可能还有其他一些原因可以解释这方面的不足。例如,业务可能会下滑。
Moreover, Shandong Sito Bio-technology has been paying dividends for seven years, which is a considerable amount of time, suggesting that management must have perceived that the shareholders prefer consistent dividends even though earnings have been shrinking.
此外,山东赛托生物科技已经派发了七年股息,这是相当长的时间,这表明管理层一定已经意识到,尽管收益一直在萎缩,但股东更喜欢持续的分红。
Conclusion
结论
On the whole, we feel that the performance shown by Shandong Sito Bio-technology can be open to many interpretations. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. To know the 3 risks we have identified for Shandong Sito Bio-technology visit our risks dashboard for free.
总的来说,我们认为山东赛托生物科技所表现出的表现可以有多种解释。尽管该公司的利润保留率确实很高,但其低回报率可能会阻碍其收益增长。总而言之,我们将谨慎对待这家公司,其中一种方法是研究该业务的风险状况。要了解我们为山东赛托生物科技确定的三种风险,请免费访问我们的风险仪表板。
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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。