Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Having said that, from a first glance at Jiangshan Oupai Door Industry (SHSE:603208) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
What is Return On Capital Employed (ROCE)?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Jiangshan Oupai Door Industry:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.082 = CN¥235m ÷ (CN¥4.4b - CN¥1.5b) (Based on the trailing twelve months to March 2022).
Thus, Jiangshan Oupai Door Industry has an ROCE of 8.2%. On its own that's a low return on capital but it's in line with the industry's average returns of 8.0%.
Check out our latest analysis for Jiangshan Oupai Door Industry
SHSE:603208 Return on Capital Employed July 8th 2022
Above you can see how the current ROCE for Jiangshan Oupai Door Industry compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for Jiangshan Oupai Door Industry.
What Can We Tell From Jiangshan Oupai Door Industry's ROCE Trend?
In terms of Jiangshan Oupai Door Industry's historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 13% over the last five years. However it looks like Jiangshan Oupai Door Industry might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.
While on the subject, we noticed that the ratio of current liabilities to total assets has risen to 35%, which has impacted the ROCE. If current liabilities hadn't increased as much as they did, the ROCE could actually be even lower. While the ratio isn't currently too high, it's worth keeping an eye on this because if it gets particularly high, the business could then face some new elements of risk.
Our Take On Jiangshan Oupai Door Industry's ROCE
In summary, Jiangshan Oupai Door Industry is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Since the stock has gained an impressive 63% over the last five years, investors must think there's better things to come. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
One more thing: We've identified 4 warning signs with Jiangshan Oupai Door Industry (at least 1 which is significant) , and understanding these would certainly be useful.
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
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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.
你知道吗,有一些财务指标可以提供潜在的多管齐下的线索?在其他方面,我们希望看到两件事;第一,不断增长的退货一是关于已用资本(ROCE),二是公司的金额已动用资本的比例。这向我们表明,它是一台复合机器,能够不断地将其收益再投资于企业,并产生更高的回报。话虽如此,从第一眼看江山欧派门业(上海证券交易所:603208)我们不会因为回报率的趋势而从椅子上跳起来,但让我们更深入地看看。
什么是资本回报率(ROCE)?
如果你以前没有使用过ROCE,它衡量的是一家公司从业务资本中获得的“回报”(税前利润)。分析师对江山欧派门业的计算公式如下:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.082=人民币2.35亿元?(人民币44亿元-人民币15亿元)(根据截至2022年3月的往绩12个月计算).
因此,江山欧派门业净资产收益率为8.2%。就其本身而言,这是一个较低的资本回报率,但符合该行业8.0%的平均回报率。
查看我们对江山欧派门业的最新分析
上证所:2022年7月8日603208的资本回报率
上图中,你可以看到江山欧派门业目前的净资产收益率与其之前的资本回报率相比如何,但你只能从过去知道这么多。如果您想查看分析师对未来的预测,您应该查看我们的免费江山欧派门业报告。
从江山欧派门业的ROCE趋势中我们可以看出什么?
就江山欧派门业历史上的ROCE运动而言,这一趋势并不美妙。更具体地说,ROCE在过去五年中从13%下降。然而,看起来江山欧派门业可能正在进行再投资,以实现长期增长,因为尽管已动用资本有所增加,但该公司的销售额在过去12个月里没有太大变化。从现在开始,值得密切关注该公司的收益,看看这些投资最终是否真的为利润做出了贡献。
在这个问题上,我们注意到流动负债占总资产的比例上升到35%,这对ROCE造成了影响。如果流动负债没有像以前那样增加,净资产收益率实际上可能会更低。虽然目前这一比率不是太高,但值得密切关注,因为如果比率变得特别高,业务可能会面临一些新的风险因素。
我们对江山欧派门业ROCE的看法
总而言之,江山欧派门业正在将资金再投资到业务中,以求增长,但不幸的是,销售额看起来还没有太大增长。鉴于该股在过去五年中的涨幅达到了令人印象深刻的63%,投资者肯定认为未来会有更好的事情发生。但如果这些潜在趋势的轨迹继续下去,我们认为从现在开始出现多管齐下的可能性并不高。
还有一件事:我们已经确定了4个警示标志与江山欧派门业合作(至少1个是重要的),了解这些肯定会有所帮助。
如果你想寻找收入丰厚的可靠公司,看看这个免费拥有良好资产负债表和可观股本回报率的公司名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。