Is Shandong Tengda Fasten Tech. Co. Ltd's (SZSE:001379) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
Is Shandong Tengda Fasten Tech. Co. Ltd's (SZSE:001379) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
Shandong Tengda Fasten Tech's (SZSE:001379) stock is up by a considerable 19% over the past week. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Shandong Tengda Fasten Tech's ROE.
近一週,山東騰達(SZSE:001379)股票上漲了19%。大多數人都知道,長期來說,基本面通常是引導市場股價運動的因素,因此我們決定今天查看公司的關鍵財務指標,以判斷其是否在最近的股價波動中起到任何作用。在這篇文章中,我們決定聚焦于山東騰達的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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股東要考慮的關鍵因素之一是淨資產收益率或roe,因爲它告訴他們公司如何有效地重新投資他們的資本。簡單點說,它衡量了公司與股東權益相關的盈利能力。
How Do You Calculate Return On Equity?
怎樣計算ROE?
ROE can be calculated by using the formula:
淨資產收益率可以使用以下公式進行計算:
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 Shandong Tengda Fasten Tech is:
那麼,基於以上公式,山東騰達的roe爲:
5.1% = CN¥73m ÷ CN¥1.4b (Based on the trailing twelve months to March 2024).
5.1%= CN¥7300萬 ÷ CN¥14億(截至2024年3月)
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.05 in profit.
「回報率」是年度利潤。可以這樣理解,對於每一元人民幣的淨資產,公司能夠獲得0.05元人民幣的利潤。
Why Is ROE Important For Earnings Growth?
ROE爲什麼對淨利潤增長很重要?
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.
到目前爲止,我們已經了解到roe是衡量公司利潤產生效率的指標。根據公司選擇再投資或「保留」其利潤的比例,我們隨後可以評估公司未來利潤的能力。其他條件都相同的情況下,roe和利潤保留率都較高的公司通常比沒有這些特徵的公司有更高的增長速度。
A Side By Side comparison of Shandong Tengda Fasten Tech's Earnings Growth And 5.1% ROE
山東騰達緊固技術的三年中位數派息比率爲29%,這意味着公司保留了其利潤的其餘71%。這表明其股息得到很好的覆蓋,並且鑑於公司的良好增長,看起來管理層正在有效地再投資其盈利。
On the face of it, Shandong Tengda Fasten Tech's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 6.8% either. Shandong Tengda Fasten Tech was still able to see a decent net income growth of 20% over the past five years. We reckon that there could be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.
Next, on comparing with the industry net income growth, we found that Shandong Tengda Fasten Tech's growth is quite high when compared to the industry average growth of 9.5% in the same period, which is great to see.
Summary
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240724/0-eccd174a498fd1f2e1028d3f2eedbc6e-0-6feb1d7edd0500c60c76613435e7f690.png/big)
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. 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 Tengda Fasten Tech is trading on a high P/E or a low P/E, relative to its industry.
Is Shandong Tengda Fasten Tech Efficiently Re-investing Its Profits?
山東騰達是否有效地再投資其利潤?
Shandong Tengda Fasten Tech has a three-year median payout ratio of 29%, which implies that it retains the remaining 71% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
Summary
總的來說,我們對偉明環保的表現非常滿意。具體而言,我們喜歡公司以高回報率再投資了其利潤的很大一部分。當然,這導致公司的收益大幅增長。但是,最新的行業分析師預測表明,該公司的收益預計將加速增長。
In total, it does look like Shandong Tengda Fasten Tech has some positive aspects to its business. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. To know the 2 risks we have identified for Shandong Tengda Fasten Tech visit our risks dashboard for free.
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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.
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@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
對本文有任何反饋?對內容有任何疑慮?請直接與我們聯繫。或者,發送電子郵件至editorial-team@simplywallst.com。