Investors Can Find Comfort In Evergreen Products Group's (HKG:1962) Earnings Quality
Investors Can Find Comfort In Evergreen Products Group's (HKG:1962) Earnings Quality
Soft earnings didn't appear to concern Evergreen Products Group Limited's (HKG:1962) shareholders over the last week. We did some digging, and we believe the earnings are stronger than they seem.
上週,長榮產品集團有限公司(HKG: 1962)的股東似乎並不關心疲軟的收益。我們進行了一些挖掘,我們認爲收益比看起來要強勁。
![earnings-and-revenue-history](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240415/0-fb2b85df5206c4c08f7d457ab4a21375-0-342e4c3a987e15265b56a75b44d98e83.png/big)
Examining Cashflow Against Evergreen Products Group's Earnings
根據長榮產品集團的收益研究現金流
In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). 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.
在高級財務中,用於衡量公司將報告的利潤轉換爲自由現金流(FCF)的關鍵比率是應計比率(來自現金流)。應計比率從給定時期的利潤中減去FCF,然後將結果除以該時間內公司的平均運營資產。該比率向我們顯示了公司的利潤超過其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. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.
這意味着負應計比率是一件好事,因爲它表明該公司帶來的自由現金流超出了其利潤所暗示的範圍。儘管應計比率高於零並不令人擔憂,但我們確實認爲,當公司的應計比率相對較高時,值得注意。那是因爲一些學術研究表明,高應計比率往往會導致利潤下降或利潤增長放緩。
Evergreen Products Group has an accrual ratio of -0.22 for the year to December 2023. That indicates that its free cash flow quite significantly exceeded its statutory profit. Indeed, in the last twelve months it reported free cash flow of HK$357m, well over the HK$51.0m it reported in profit. Evergreen Products Group's free cash flow actually declined over the last year, which is disappointing, like non-biodegradable balloons.
截至2023年12月的一年中,長榮產品集團的應計比率爲-0.22。這表明其自由現金流大大超過了其法定利潤。事實上,在過去的十二個月中,該公司報告的自由現金流爲3.57億港元,遠遠超過其公佈的5,100萬港元的利潤。去年,長榮產品集團的自由現金流實際上有所下降,這令人失望,就像不可生物降解的氣球一樣。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Evergreen Products Group.
注意:我們始終建議投資者檢查資產負債表的實力。點擊此處查看我們對長榮產品集團的資產負債表分析。
Our Take On Evergreen Products Group's Profit Performance
我們對長榮產品集團利潤表現的看法
Happily for shareholders, Evergreen Products Group produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that Evergreen Products Group's statutory profit actually understates its earnings potential! Unfortunately, though, its earnings per share actually fell back over the last year. 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. If you want to do dive deeper into Evergreen Products Group, you'd also look into what risks it is currently facing. For instance, we've identified 4 warning signs for Evergreen Products Group (2 are significant) you should be familiar with.
令股東高興的是,長榮產品集團產生了充足的自由現金流來支持其法定利潤數字。基於這一觀察,我們認爲長榮產品集團的法定利潤實際上可能低估了其盈利潛力!但不幸的是,其每股收益實際上在去年有所回落。當然,我們只是在分析其收益時才浮出水面;人們還可以考慮利潤率、預測增長和投資回報率等因素。如果你想更深入地了解長榮產品集團,你還需要研究它目前面臨的風險。例如,我們已經確定了你應該熟悉的常青產品集團的4個警告信號(2個很重要)。
Today we've zoomed in on a single data point to better understand the nature of Evergreen Products Group's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. 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,我們放大了單個數據點,以更好地了解長榮產品集團利潤的性質。但是,如果你能夠將注意力集中在細節上,總會有更多的事情需要發現。有些人認爲高股本回報率是優質業務的好兆頭。雖然可能需要你進行一些研究,但你可能會發現這份免費收集的擁有高股本回報率的公司,或者這份內部人士正在購買的股票清單很有用。
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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。