Jiayou International LogisticsLtd (SHSE:603871) has had a great run on the share market with its stock up by a significant 37% over the last three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Specifically, we decided to study Jiayou International LogisticsLtd's ROE in this article.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
How To Calculate Return On Equity?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Jiayou International LogisticsLtd is:
21% = CN¥1.0b ÷ CN¥5.0b (Based on the trailing twelve months to December 2023).
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.21.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
Jiayou International LogisticsLtd's Earnings Growth And 21% ROE
At first glance, Jiayou International LogisticsLtd seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 7.9%. This certainly adds some context to Jiayou International LogisticsLtd's exceptional 28% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
As a next step, we compared Jiayou International LogisticsLtd's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 12%.
SHSE:603871 Past Earnings Growth April 20th 2024
Earnings growth is an important metric to consider when valuing a stock. 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 Jiayou International LogisticsLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Jiayou International LogisticsLtd Using Its Retained Earnings Effectively?
Jiayou International LogisticsLtd has a three-year median payout ratio of 37% (where it is retaining 63% of its income) which is not too low or not too high. By the looks of it, the dividend is well covered and Jiayou International LogisticsLtd is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
Besides, Jiayou International LogisticsLtd has been paying dividends over a period of six years. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 27% over the next three years. However, the company's ROE is not expected to change by much despite the lower expected payout ratio.
Summary
On the whole, we feel that Jiayou International LogisticsLtd's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
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Jiayou International LogisticsLtd(SHSE:603871)は、株式市場での実行が素晴らしく、過去3ヶ月間に株価が37%以上上昇しました。会社の長期的な財務状況が通常市場の結果を決定するため、同社の財務指標をより詳しく調査することにしました。具体的には、この記事ではJiayou International LogisticsLtdのroeを調べることにしました。
Jiayou International LogisticsLtdは最初の印象ではROEがまずまずであるように思われます。さらに、同社のROEは業界平均の7.9%と比較して非常に良好です。これは、過去5年間に見られた28%の当期純利益成長に関連しています。同社の収益成長に影響を与えている肯定的な要因があるかもしれないと考えています。たとえば、同社の経営陣が良い戦略的判断を下した可能性がある、あるいは同社が低い配当率を持っている可能性があります。
株式評価においては、収益成長が重要な指標である。市場が会社の予想収益成長(または減少)を織り込み済みであるかどうかを知ることは、投資家にとって重要です。これにより、株の将来の見通しが有望かどうかを判断することができます。Jiayou International LogisticsLtdの評価について気になる場合は、業界と比較した株価収益率に関するこのゲージを確認してください。
Jiayou International LogisticsLtdは、過去3年間の配当比率の中央値が37%で(収入の63%を保有している)、低くも高くもありません。それから、配当は十分にカバーされており、上記で議論したような同社の優れた成長を示しているように、Jiayou International LogisticsLtdは利益を効率的に再投資しています。
そのうえ、Jiayou International LogisticsLtdは6年間配当を支払い続けており、これは同社が利益を株主と共有することを約束していることを示しています。最新のアナリストデータによると、同社の将来の配当比率は次の3年間で27%に低下すると予想されています。ただし、同社のROEは、期待される配当比率の低下にもかかわらず、あまり変化しないと予想されています。
全体として、私たちはJiayou International LogisticsLtdのパフォーマンスがかなり良いと考えています。特に、同社がビジネスに大量に投資しており、高い利益率とともに、収益の大幅な成長をもたらしています。これにもかかわらず、最新のアナリスト予測の調査では、同社の将来の収益成長が鈍化すると予想されています。同社の将来の収益成長予測の詳細については、この企業に関するアナリスト予測に関する無料レポートを参照してください。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。