Nanjing Iron & Steel Co., Ltd.'s (SHSE:600282) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?
Nanjing Iron & Steel Co., Ltd.'s (SHSE:600282) On An Uptrend But Financial Prospects Look Pretty Weak: Is The Stock Overpriced?
Nanjing Iron & Steel (SHSE:600282) has had a great run on the share market with its stock up by a significant 12% over the last three months. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. In this article, we decided to focus on Nanjing Iron & Steel's ROE.
南京钢铁(SHSE:600282)在过去三个月股市表现强劲,股价上涨了显著的12%。 然而,在本文中,我们决定关注其薄弱的基本面,因为业务的长期财务表现最终决定了市场结果。 在本文中,我们决定关注南京钢铁的roe。
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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
roe,即净资产收益率,是一种评估公司如何有效地从股东手中获取投资回报的有用工具。换句话说,它是一种盈利能力比率,衡量公司股东提供的资本的回报率。
How Is ROE Calculated?
净资产收益率怎么计算?
The formula for return on equity is:
权益回报率的计算公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
净资产收益率 = 净利润(从持续经营中获得)÷ 股东权益
So, based on the above formula, the ROE for Nanjing Iron & Steel is:
因此,根据上述公式,南京钢铁的roe为:
8.3% = CN¥2.4b ÷ CN¥28b (Based on the trailing twelve months to March 2024).
8.3%= CN¥24亿÷ CN¥280亿(截至2024年3月的最新12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¥0.08.
“回报率”是年度盈利。 因此,这意味着对于股东的每CN¥1投资,公司就会产生CN¥0.08的利润。
Why Is ROE Important For Earnings Growth?
ROE对于盈利增长的重要性是什么?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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. 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.
到目前为止,我们已经了解到roe衡量公司利润产生的效率。根据公司选择再投资或“保留”的利润比例,我们能够评估公司未来产生利润的能力。其他条件相同的情况下,roe和利润保留率均较高的公司通常比没有这些特征的公司成长速度更快。
A Side By Side comparison of Nanjing Iron & Steel's Earnings Growth And 8.3% ROE
南京钢铁盈利增长和8.3%roe的并置比较
When you first look at it, Nanjing Iron & Steel's ROE doesn't look that attractive. Yet, a closer study shows that the company's ROE is similar to the industry average of 7.4%. But then again, Nanjing Iron & Steel's five year net income shrunk at a rate of 7.5%. Remember, the company's ROE is a bit low to begin with. So that's what might be causing earnings growth to shrink.
初看之下,南京钢铁的roe看起来并不那么有吸引力。 然而,更深入的研究表明,公司的roe类似于行业平均水平为7.4%。 但是,我们需要记住,南京钢铁的五年净利润以7.5%的速度下降。 因此,公司的roe在一开始就有点低,这可能会导致收益增长下降。
That being said, we compared Nanjing Iron & Steel's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 12% in the same 5-year period.
话虽如此,我们与业界比较了南京钢铁的业绩,并发现在同一五年时间段内,尽管该公司收益下降,但行业的收益增长了12%,这让我们感到担忧。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240612/0-b4422e4c1766441a76e80c97c33d1800-0-44b07a769b6b96267dc3fc02f88d7bdc.png/big)
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Nanjing Iron & Steel's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增长是股票估价的一个重要因素。 投资者应该尝试确定预期的盈利增长或下降(无论哪种情况),并进行定价。 这样,他们将了解股票是走向明朗局面还是将面临沼泽水域。 如果你想知道南京钢铁的估值,请查看其市盈率的这个比较其行业的仪表。
Is Nanjing Iron & Steel Efficiently Re-investing Its Profits?
南京钢铁是否高效地再投资其利润?
Nanjing Iron & Steel's declining earnings is not surprising given how the company is spending most of its profits in paying dividends, judging by its three-year median payout ratio of 67% (or a retention ratio of 33%). The business is only left with a small pool of capital to reinvest - A vicious cycle that doesn't benefit the company in the long-run. Our risks dashboard should have the 2 risks we have identified for Nanjing Iron & Steel.
鉴于南京钢铁三年的中位数股息支付比率为67%(或留存比率为33%),其下降的盈利并不令人意外,因为公司大部分利润用于支付股息,业务只剩下一小部分资本进行再投资- 这是一个恶性循环,长期而言并不有利于公司。 我们的风险仪表板应该包含我们为南京钢铁确定的2个风险。
Additionally, Nanjing Iron & Steel has paid dividends over a period of six years, which means that the company's management is rather focused on keeping up its dividend payments, regardless of the shrinking earnings.
此外,南京钢铁已经连续六年派发股息,这意味着公司管理层对保持股息支付有相当的关注,而不考虑缩小的盈利。
Summary
总的来说,我们对伟明环保的表现非常满意。具体而言,我们喜欢公司以高回报率再投资了其利润的很大一部分。当然,这导致公司的收益大幅增长。但是,最新的行业分析师预测表明,该公司的收益预计将加速增长。
Overall, we would be extremely cautious before making any decision on Nanjing Iron & Steel. The company has seen a lack of earnings growth as a result of retaining very little profits and whatever little it does retain, is being reinvested at a very low rate of return. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
总体而言,在做出关于南京钢铁的任何决定之前,我们应该非常谨慎。 该公司看到利润少,因为保留的利润很少,任何留存的利润都以非常低的回报率进行再投资。 话虽如此,我们研究了最新的分析师预测,并发现尽管该公司曾经在过去收益下降,但分析师预计其未来收益将增长。 要了解有关该公司的最新分析师预测的更多信息,请查看这个公司的分析师预测可视化内容。
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