Wuxi Xinhongye Wire & Cable (SZSE:301310) Is Reinvesting At Lower Rates Of Return
Wuxi Xinhongye Wire & Cable (SZSE:301310) Is Reinvesting At Lower Rates Of Return
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after investigating Wuxi Xinhongye Wire & Cable (SZSE:301310), we don't think it's current trends fit the mold of a multi-bagger.
如果我们想找到一个潜在的多倍收益股,通常有一些潜在的趋势可以提供线索。通常,我们希望注意到资本回报率(ROCE)持续增长的趋势,并且随着这个趋势,资本使用基数不断扩大。如果你观察到这一点,通常意味着这是一家拥有良好业务模型和丰富盈利再投资机会的公司。然而,在调查无锡新宏业电线电缆(SZSE:301310)之后,我们认为其当前的趋势并不符合多倍收益股的标准。
Understanding Return On Capital Employed (ROCE)
上面您可以看到蒙托克可再生能源现行ROCE与之前资本回报的比较,但过去只能知道这么多。如果您感兴趣,可以查看我们免费的蒙托克可再生能源分析师报告,了解分析师的预测。
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Wuxi Xinhongye Wire & Cable is:
如果你以前没有使用过ROCE,它衡量的是公司从其使用的资本中产生的“回报”(税前利润)。无锡新宏业电线电缆的计算公式是:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
资本利用率 = 利息和税前利润(EBIT) ÷ (总资产 - 流动负债)
0.039 = CN¥90m ÷ (CN¥4.0b - CN¥1.7b) (Based on the trailing twelve months to September 2024).
0.039 = CN¥9000万 ÷ (CN¥40亿 - CN¥1.7b) (基于截至2024年9月的过去十二个月数据)。
So, Wuxi Xinhongye Wire & Cable has an ROCE of 3.9%. In absolute terms, that's a low return and it also under-performs the Electrical industry average of 5.8%.
因此,无锡新宏业电线电缆的ROCE为3.9%。从绝对值来看,这是一个低回报率,并且它还低于电气行业的平均水平5.8%。
Above you can see how the current ROCE for Wuxi Xinhongye Wire & Cable compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Wuxi Xinhongye Wire & Cable for free.
上面你可以看到无锡新宏业线缆的当前资本回报率与其过去的资本回报率的比较,但从过去只能了解有限的信息。如果你愿意,可以免费查看覆盖无锡新宏业线缆的分析师的预测。
How Are Returns Trending?
综合上述,Cimpress非常有效地提高了其资本利用率所产生的回报。考虑到股票过去五年保持稳定,如果其他指标也不错,则可能存在机会。因此,进一步研究这家公司并确定这些趋势是否会持续是合理的。
On the surface, the trend of ROCE at Wuxi Xinhongye Wire & Cable doesn't inspire confidence. Around five years ago the returns on capital were 22%, but since then they've fallen to 3.9%. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
从表面上看,无锡新宏业线缆的资本回报率趋势并没有令人信服。大约五年前的资本回报率为22%,但自那以来已降至3.9%。然而,考虑到使用的资本和营业收入的增加,似乎该业务目前正在追求增长,牺牲了短期回报。如果增加的资本产生额外的回报,该业务以及股东将从长远来看受益。
On a related note, Wuxi Xinhongye Wire & Cable has decreased its current liabilities to 42% of total assets. So we could link some of this to the decrease in ROCE. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money. Keep in mind 42% is still pretty high, so those risks are still somewhat prevalent.
在相关方面,无锡新宏业线缆已将其流动负债降低至总资产的42%。因此,我们可以将部分原因与资本回报率的下降联系起来。此外,这可以减少业务的某些风险,因为现在公司的供应商或短期债权人对其运营的资金支持减少。一些人会声称,这会降低业务产生资本回报率的效率,因为它现在用自己资金支持更多的运营。请记住,42%仍然相当高,因此这些风险仍然在某种程度上存在。
The Bottom Line
最终结论
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Wuxi Xinhongye Wire & Cable. However, despite the promising trends, the stock has fallen 16% over the last year, so there might be an opportunity here for astute investors. As a result, we'd recommend researching this stock further to uncover what other fundamentals of the business can show us.
尽管短期内资本回报率下降,但我们发现无锡新宏业线缆的营业收入和使用的资本均有所增加,这令人感到乐观。然而,尽管存在积极的趋势,股票在过去一年中下降了16%,因此对于精明的投资者来说,这里可能存在机会。因此,我们建议进一步研究该股票以发现业务的其他基本面可以告诉我们的信息。
Wuxi Xinhongye Wire & Cable does come with some risks though, we found 2 warning signs in our investment analysis, and 1 of those is significant...
无锡新鸿业电线电缆确实存在一些风险,我们在投资分析中发现了两个警示信号,其中一个是显著的...
While Wuxi Xinhongye Wire & Cable isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
虽然无锡新鸿业电线电缆的回报不是最高的,但请查看这份免费的公司名单,名单上是那些在财务状况良好的情况下获得高股本回报的公司。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
对这篇文章有反馈吗?对内容感到担忧吗?请直接与我们联系。或者,发送电子邮件至editorial-team @ simplywallst.com。
Simply Wall St的这篇文章是一般性质的。我们仅基于历史数据和分析师预测提供评论,使用公正的方法,我们的文章并非意在提供财务建议。这并不构成买入或卖出任何股票的建议,并且不考虑您的目标或财务状况。我们旨在为您带来基于基础数据驱动的长期聚焦分析。请注意,我们的分析可能未考虑最新的价格敏感公司公告或定性材料。Simply Wall St对提及的任何股票都没有持仓。