WK Group (Holdings)'s (HKG:2535) Problems Go Beyond Weak Profit
WK Group (Holdings)'s (HKG:2535) Problems Go Beyond Weak Profit
A lackluster earnings announcement from WK Group (Holdings) Limited (HKG:2535) last week didn't sink the stock price. However, we believe that investors should be aware of some underlying factors which may be of concern.
上週Wk Group(Holdings) Limited(HKG:2535)發佈的收益公告並未使股價下跌。然而,我們認爲投資者應該注意一些潛在因素可能值得關注。
A Closer Look At WK Group (Holdings)'s Earnings
深入了解Wk Group(Holdings)的盈利情況
Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.
許多投資者沒有聽說過來自現金流的計提比率,但實際上它是衡量公司利潤在給定期間內如何得到自由現金流(FCF)支持的有用指標。該計提比率從給定期間的FCF中減去利潤,然後將結果除以該時期公司的平均運營資產。您可將來自現金流的計提比率視爲「非FCF利潤比率」。
That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.
這意味着負的應計比率是一件好事,因爲它表明公司比其利潤所示帶來了更多的自由現金流。雖然應計比率高於零不足爲憑,但如果公司的應計比率相對較高,我們認爲這值得注意。值得注意的是,有一些學術證據表明,相對而言,高應計比率是短期利潤的不利信號。
Over the twelve months to June 2024, WK Group (Holdings) recorded an accrual ratio of 0.24. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing. To wit, it produced free cash flow of HK$2.9m during the period, falling well short of its reported profit of HK$29.3m. WK Group (Holdings) shareholders will no doubt be hoping that its free cash flow bounces back next year, since it was down over the last twelve months.
在截至2024年6月的十二個月內,Wk Group(Holdings)的應計比率爲0.24。因此,我們知道它的自由現金流明顯低於其法定利潤,這並不是一件好事。換句話說,在此期間,它的自由現金流爲290萬港元,遠低於其報道的利潤2930萬港元。Wk Group(Holdings)的股東們無疑希望明年其自由現金流能反彈,因爲在過去的十二個月裏它已經下降。
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of WK Group (Holdings).
注意:我們始終建議投資者檢查資產負債表的實力。點擊這裏查看Wk Group(Holdings)資產負債表分析。
Our Take On WK Group (Holdings)'s Profit Performance
我們對Wk Group(Holdings)的盈利表現持有看法
WK Group (Holdings)'s accrual ratio for the last twelve months signifies cash conversion is less than ideal, which is a negative when it comes to our view of its earnings. Because of this, we think that it may be that WK Group (Holdings)'s statutory profits are better than its underlying earnings power. In further bad news, its earnings per share decreased in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. So while earnings quality is important, it's equally important to consider the risks facing WK Group (Holdings) at this point in time. For example - WK Group (Holdings) has 2 warning signs we think you should be aware of.
Wk Group(Holdings)過去十二個月的準現金比率表明現金轉換不盡如人意,對我們對其盈利的看法是負面的。由於這一點,我們認爲可能是Wk Group(Holdings)的財務利潤優於其基本盈利能力。進一步的壞消息是,其每股盈利在過去一年裏有所下降。當然,在分析其盈利方面,我們只是剛剛觸及表面;人們還可以考慮到邊際、預測增長和投資回報率等其他因素。因此,儘管盈利質量很重要,但在當前時點考慮Wk Group(Holdings)面臨的風險同樣重要。例如 - Wk Group(Holdings)有2個警示信號,我們認爲您應該注意。
Today we've zoomed in on a single data point to better understand the nature of WK Group (Holdings)'s profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
今天,我們將重點放在一個單一數據點上,以更好地了解Wk Group(Holdings)盈利的性質。但還有很多其他方法可以幫助您了解一家公司。例如,許多人認爲高股本回報率是有利的商業經濟指標,而其他人則喜歡「跟隨資金」並尋找內部人員正在買入的股票。雖然這可能需要您做一些研究,但您可能會發現這些擁有高股本回報率的公司收集,或者這些擁有重要內部持股的股票清單是有用的。
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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.
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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。