Has Tianjin Keyvia Electric Co.,Ltd's (SZSE:300407) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Has Tianjin Keyvia Electric Co.,Ltd's (SZSE:300407) Impressive Stock Performance Got Anything to Do With Its Fundamentals?
Most readers would already be aware that Tianjin Keyvia ElectricLtd's (SZSE:300407) stock increased significantly by 21% over the past month. Given that stock prices are usually aligned with a company's financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Particularly, we will be paying attention to Tianjin Keyvia ElectricLtd's ROE today.
大多數讀者都已經意識到天津凱維電氣股份有限公司(SZSE:300407)的股價在過去一個月裏顯著上漲了21%。鑑於股價通常與公司的長期財務表現保持一致,我們決定更仔細地研究它的財務指標,看看它們是否在最近的價格上漲中起了作用。特別是,我們今天將密切關注天津凱維電氣ROE指標。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股東權益回報率(ROE)是測試公司如何有效地增加其價值並管理投資者資金的指標。簡而言之,它用於評估公司相對於股本資本的盈利能力。
How To Calculate Return On Equity?
如何計算股東權益報酬率?
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 Tianjin Keyvia ElectricLtd is:
因此,根據上述公式,天津凱威亞電子的roe爲:
5.6% = CN¥102m ÷ CN¥1.8b (Based on the trailing twelve months to March 2024).
5.6% = CN¥10200萬 ÷ CN¥18億(截至2024年3月的過去十二個月)。
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¥0.06 in profit.
「回報」即年利潤。另一種思考方法是,每增加1元人民幣的權益,該公司就能賺取0.06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?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
我們已經意識到,ROE作爲公司未來盈利的有效衡量值。根據公司重新投資或「保留」這些利潤的程度,以及公司有效地運用這些利潤的程度,我們就能評估公司的盈利增長潛力。假設其他所有因素保持不變,ROE和利潤保留越高,增長率就會越高,相比於沒有這些特點的公司,公司的增長率就會更高。
Tianjin Keyvia ElectricLtd's Earnings Growth And 5.6% ROE
Tianjin Keyvia ElectricLtd has a low three-year median payout ratio of 13%, meaning that the company retains the remaining 87% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.
On the face of it, Tianjin Keyvia ElectricLtd's ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 6.9%. Even so, Tianjin Keyvia ElectricLtd has shown a fairly decent growth in its net income which grew at a rate of 20%. Considering the moderately low ROE, it is quite possible that there might be some 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.
We then compared Tianjin Keyvia ElectricLtd's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 12% in the same 5-year period.
Besides, Tianjin Keyvia ElectricLtd has been paying dividends over a period of nine years. This shows that the company is committed to sharing profits with its shareholders.
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Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. What is 300407 worth today? The intrinsic value infographic in our free research report helps visualize whether 300407 is currently mispriced by the market.
Is Tianjin Keyvia ElectricLtd Using Its Retained Earnings Effectively?
天津凱維電氣是否有效利用其留存收益?
Tianjin Keyvia ElectricLtd has a low three-year median payout ratio of 13%, meaning that the company retains the remaining 87% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.
天津凱維電氣三年的中位數派息比率很低,爲13%,這意味着公司保留了其利潤的87%。這表明管理層正在將大部分的利潤用於業務增長。
Besides, Tianjin Keyvia ElectricLtd has been paying dividends over a period of nine years. This shows that the company is committed to sharing profits with its shareholders.
此外,天津凱威亞電子雖然在過去的九年中一直在支付股息,但這表明該公司致力於與其股東分享利潤。
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。
Overall, we feel that Tianjin Keyvia ElectricLtd certainly does have some positive factors to consider. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. 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 3 risks we have identified for Tianjin Keyvia ElectricLtd 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。