Are Yantai Eddie Precision Machinery Co., Ltd.'s (SHSE:603638) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Are Yantai Eddie Precision Machinery Co., Ltd.'s (SHSE:603638) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
Yantai Eddie Precision Machinery (SHSE:603638) has had a rough month with its share price down 13%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. In this article, we decided to focus on Yantai Eddie Precision Machinery's ROE.
艾迪精密機械(SHSE:603638)在過去的一個月裏股價下跌了13%。但是,該公司的基本面看起來相當不錯,長期的財務情況通常與未來的市場價格走勢一致。本文將重點關注艾迪精密機械的roe。
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. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
對於股東來說,股東回報率(ROE)是一個重要的考慮因素,因爲它告訴股東他們的資本被有效地再投資了多少。換句話說,它是一個衡量公司股東提供的資本回報率的盈利能力比率。
How Is ROE Calculated?
淨資產收益率怎麼計算?
The formula for return on equity is:
權益回報率的計算公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
淨資產收益率 = 淨利潤(從持續經營中獲得)÷ 股東權益
So, based on the above formula, the ROE for Yantai Eddie Precision Machinery is:
因此,根據上述公式,艾迪精密機械的roe爲8.6%:
8.6% = CN¥289m ÷ CN¥3.4b (Based on the trailing twelve months to March 2024).
8.6% = CN¥28900萬 ÷ CN¥34億(截至2024年3月的過去12個月)。
The 'return' is the yearly profit. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.09 in profit.
此處的“收益”是指年度利潤。一個概念化的方式是,對於每一元股東資本,公司獲得了0.09元的利潤。
What Has ROE Got To Do With Earnings Growth?
roe與盈利增長有何關係?
So far, we've learned that ROE is a measure of a company's profitability. 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. 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.
迄今爲止,我們已經了解到roe是公司盈利能力的一種衡量方式。根據公司重新投資或保留這些利潤的數量,以及有效程度,我們能夠評估公司的盈利增長潛力。一般來說,其他條件相同的情況下,具有高roe和盈利保留能力的公司比沒有這些特徵的公司的增長率更高。
A Side By Side comparison of Yantai Eddie Precision Machinery's Earnings Growth And 8.6% ROE
艾迪精密的盈利增長和8.6%的roe的並排比較
At first glance, Yantai Eddie Precision Machinery's ROE doesn't look very promising. However, the fact that the its ROE is quite higher to the industry average of 6.9% doesn't go unnoticed by us. But seeing Yantai Eddie Precision Machinery's five year net income decline of 6.0% over the past five years, we might rethink that. Bear in mind, the company does have a slightly low ROE. It is just that the industry ROE is lower. Hence, this goes some way in explaining the shrinking earnings.
乍一看,艾迪精密機械的roe看起來並不是很有前途。 但是,它的roe比行業平均水平的6.9%高得多,這也沒有逃脫我們的注意。 但是,考慮到艾迪精密機械過去五年的淨收入下降了6.0%,我們可能需要重新考慮。請注意,該公司的roe略低。只是行業roe更低。因此,這在一定程度上可以解釋收益萎縮的原因。
That being said, we compared Yantai Eddie Precision Machinery'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 9.5% in the same 5-year period.
話雖如此,我們將艾迪精密機械的表現與整個行業進行了比較,並發現,在同一5年期內,該公司的收益下降,而行業的收益增長了9.5%,這令人擔憂。
![past-earnings-growth](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240625/0-4af430659219ffa1bf995824137552ec-0-d7a7a875e32036144c140cc87d0eb7b6.png/big)
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). 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 Yantai Eddie Precision Machinery's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
盈利增長是估值股票時需要考慮的重要指標。投資者要知道市場是否已經定價了公司預期的盈利增長(或下降)。通過這樣做,他們將會知道股票是前往晴朗水域還是進入沼澤般的水域。如果您想了解艾迪精密的估值,請查看與其行業相比的市盈率數據。
Is Yantai Eddie Precision Machinery Using Its Retained Earnings Effectively?
艾迪精密機械是否有效地使用了保留收益?
Looking at its three-year median payout ratio of 29% (or a retention ratio of 71%) which is pretty normal, Yantai Eddie Precision Machinery's declining earnings is rather baffling as one would expect to see a fair bit of growth when a company is retaining a good portion of its profits. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
觀察艾迪精密3年的中位數派息比率爲29%(或保留率爲71%),這相當正常,但是當公司保留大部分利潤時,其盈利下降令人困惑。看起來可能有其他原因解釋缺乏增長,例如業務可能正在衰退。
Additionally, Yantai Eddie Precision Machinery has paid dividends over a period of seven years, which means that the company's management is rather focused on keeping up its dividend payments, regardless of the shrinking earnings.
此外,艾迪精密機械在過去的七年中支付了股息,這意味着該公司的管理層專注於維持其股息支付,而不考慮其萎縮的收益。
Conclusion
結論
Overall, we feel that Yantai Eddie Precision Machinery certainly does have some positive factors to consider. Yet, the low earnings growth is a bit concerning, especially given that the company has a respectable rate of return and is reinvesting a huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
總體而言,我們認爲艾迪精密肯定有一些要考慮的積極因素。然而,低的盈利增長有點令人擔憂,尤其是考慮到該公司具有可觀的回報率並且正在重新投資其大部分利潤。看起來可能存在其他因素,不一定在公司的控制之下,這些因素可能會阻止增長。既然如此,最新的行業分析師預測顯示,分析師預計將看到公司的盈利增長率有巨大的改善。這些分析師的預期是基於行業的全面預期還是公司的基本面?請點擊此處查看我們公司分析師的預測頁面。
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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.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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