Declining Stock and Decent Financials: Is The Market Wrong About KEDE Numerical Control Co., Ltd. (SHSE:688305)?
Declining Stock and Decent Financials: Is The Market Wrong About KEDE Numerical Control Co., Ltd. (SHSE:688305)?
It is hard to get excited after looking at KEDE Numerical Control's (SHSE:688305) recent performance, when its stock has declined 17% over the past three months. 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 KEDE Numerical Control's ROE.
看完科德數控(SHSE:688305)最近的表現之後很難感到興奮,因爲其股票在過去三個月下跌了17%。然而,公司的基本面看起來相當不錯,長期財務狀況通常與未來的市場價格走勢保持一致。在本文中,我們決定關注科德數控的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. Put another way, it reveals the company's success at turning shareholder investments into profits.
ROE或股東權益報酬率是一種有用的工具,用於評估一家公司能否有效地利用來自股東的投資產生回報。換句話說,它揭示了公司將股東的投資變成利潤的成功程度。
How Do You Calculate Return On Equity?
怎樣計算ROE?
Return on equity can be calculated by using the formula:
股東權益報酬率可以使用以下公式計算:
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 KEDE Numerical Control is:
所以,根據上述公式,科德數控的roe爲:
7.8% = CN¥90m ÷ CN¥1.1b (Based on the trailing twelve months to March 2024).
7.8% = 人民幣9000萬 ÷ 人民幣11億(基於截至2024年3月的過去十二個月)。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.08 in profit.
「回報」是指公司在過去一年中的收益。這意味着,對於每一元股東權益,公司產生了0.08元的利潤。
What Has ROE Got To Do With Earnings Growth?
roe與盈利增長有何關係?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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.
我們已經確定,roe可以作爲一種有效的衡量公司未來盈利能力的指標。現在我們需要評估公司再投資或「保留」的利潤有多少,這就給我們提供了有關公司增長潛力的想法。假設其他一切不變,roe和利潤保留率越高,公司的增長率就越高,而不一定具備這些特徵的公司相比。
KEDE Numerical Control's Earnings Growth And 7.8% ROE
KEDE數控的盈利增長和7.8%的ROE
On the face of it, KEDE Numerical Control's ROE is not much to talk about. However, its ROE is similar to the industry average of 7.0%, so we won't completely dismiss the company. Having said that, KEDE Numerical Control has shown a modest net income growth of 20% over the past five years. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this 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.
從表面上看,KEDE數控的roe並不值得一提。然而,它的roe與行業平均水平7.0%相似,所以我們不會完全忽視這家公司。話雖如此,KEDE數控在過去五年顯示出了適度的淨利潤增長20%。鑑於roe略低,很可能存在一些其他方面推動着這種增長。例如,該公司的管理團隊可能已經做出了一些明智的戰略決策,或者公司的分紅比率較低。
We then compared KEDE Numerical Control'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 9.3% in the same 5-year period.
然後我們將KEDE數控的淨利潤增長與行業進行比較,很高興看到該公司的增長數字高於行業,在同一5年期內,行業增長率爲9.3%。
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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. 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 KEDE Numerical Control is trading on a high P/E or a low P/E, relative to its industry.
利潤增長是股票估值的一個重要因素。投資者應該試圖確定預期的利潤增長或下降是否已經被定價進去。通過這樣做,他們可以了解股票是否正在走向明朗的未來,還是將面臨困難的情況。預期利潤增長的一個好指標是市盈率,它根據其盈利前景確定市場願意爲一隻股票支付的價格。因此,您可能想要檢查KEDE Numerical Control股票的市盈率是高還是低,相對於其行業。
Is KEDE Numerical Control Efficiently Re-investing Its Profits?
KEDE Numerical Control是否有效地再投資其利潤?
KEDE Numerical Control has a low three-year median payout ratio of 24%, meaning that the company retains the remaining 76% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.
KEDE Numerical Control的三年中值股息支付比率只有24%,這意味着公司保留其利潤的剩餘76%。這表明管理層將大部分利潤再投資於業務增長。
Conclusion
結論
On the whole, we do feel that KEDE Numerical Control has some positive attributes. 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. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. 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,我們確實認爲KEDE Numerical Control具有一些積極的特徵。儘管其回報率較低,但公司將很高比例的利潤再投資於業務中,無疑對其高速增長貢獻良多。然而,最新的行業分析師預測顯示,該公司的盈利預計將加速增長。這些分析師的預期是基於行業的整體預期,還是公司的基本面?點擊這裏進入我們的分析師預測頁面了解更多。
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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。