It is hard to get excited after looking at Poly Property Services' (HKG:6049) recent performance, when its stock has declined 21% over the past three months. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. In this article, we decided to focus on Poly Property Services' ROE.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
View our latest analysis for Poly Property Services
How Is ROE Calculated?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Poly Property Services is:
13% = CN¥871m ÷ CN¥6.9b (Based on the trailing twelve months to December 2021).
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every HK$1 worth of equity, the company was able to earn HK$0.13 in profit.
Why Is ROE Important For Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
A Side By Side comparison of Poly Property Services' Earnings Growth And 13% ROE
At first glance, Poly Property Services seems to have a decent ROE. On comparing with the average industry ROE of 7.5% the company's ROE looks pretty remarkable. This probably laid the ground for Poly Property Services' significant 32% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
Next, on comparing with the industry net income growth, we found that Poly Property Services' growth is quite high when compared to the industry average growth of 8.2% in the same period, which is great to see.
SEHK:6049 Past Earnings Growth August 26th 2022
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is Poly Property Services fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Poly Property Services Efficiently Re-investing Its Profits?
Poly Property Services has a three-year median payout ratio of 25% (where it is retaining 75% of its income) which is not too low or not too high. By the looks of it, the dividend is well covered and Poly Property Services is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above.
While Poly Property Services has been growing its earnings, it only recently started to pay dividends which likely means that the company decided to impress new and existing shareholders with a dividend. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 20% over the next three years. The fact that the company's ROE is expected to rise to 17% over the same period is explained by the drop in the payout ratio.
Conclusion
Overall, we are quite pleased with Poly Property Services' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
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.
看到保利地产服务公司(HKG:6049)最近的表现,很难感到兴奋,其股价在过去三个月里下跌了21%。但如果你仔细观察,你可能会猜到,它强劲的财务状况可能意味着,考虑到市场通常会奖励财务状况良好的公司,该股可能会在长期内增值。在本文中,我们决定重点关注保利物业服务公司的净资产收益率。
股本回报率(ROE)是用来评估公司管理层利用公司资本效率的关键指标。换句话说,这是一个衡量公司股东提供的资本回报率的盈利比率。
查看我们对保利物业服务的最新分析
净资产收益率是如何计算的?
这个净资产收益率公式是:
股本回报率=(持续经营的)净利润?股东权益
因此,根据上述公式,保利物业服务的净资产收益率为:
13%=8.71亿元×69亿元(以截至2021年12月的12个月为基础)。
“报税表”是过去12个月的税后收入。另一种说法是,该公司每持有价值1港元的股票,就能赚取0.13港元的利润。
为什么净资产收益率对收益增长很重要?
我们已经证实,净资产收益率是一家公司未来收益的有效盈利指标。根据公司选择再投资或“保留”多少利润,我们就能够评估一家公司未来产生利润的能力。一般来说,在其他条件相同的情况下,股本回报率和利润留存较高的公司比不具备这些特征的公司有更高的增长率。
保利物业服务盈利增长与13%净资产收益率的并列比较
乍一看,保利物业服务公司似乎拥有不错的净资产收益率。与7.5%的行业平均净资产收益率相比,该公司的净资产收益率看起来相当惊人。这可能为保利物业服务公司在过去五年中实现32%的净利润大幅增长奠定了基础。我们认为,可能还有其他方面正在积极影响公司的收益增长。例如-高收益留存或有效的管理到位。
接下来,对比行业净收入增长,我们发现保利物业服务的增长与同期8.2%的行业平均增长相比相当高,这是令人欣喜的。
联交所:6049过去盈利增长2022年8月26日
赋予一家公司价值的基础在很大程度上与其盈利增长挂钩。对于投资者来说,重要的是知道市场是否已经消化了公司预期的收益增长(或下降)。这有助于他们确定这只股票是为光明还是黯淡的未来做准备。与其他公司相比,保利物业服务公司的价值是否公平?这3个估值指标可能会帮助你做出决定。
保利物业服务公司是否有效地将其利润进行了再投资?
保利物业服务的三年中值派息率为25%(该公司将保留75%的收入),这不是太低也不是太高。从表面上看,股息得到了很好的覆盖,保利物业服务公司正在有效地将其利润进行再投资,这一点从我们上面讨论的非凡增长中可见一斑。
虽然保利地产服务公司的收益一直在增长,但它最近才开始派息,这可能意味着该公司决定用股息给新股东和现有股东留下深刻印象。我们最新的分析师数据显示,该公司未来三年的派息率预计将降至20%。该公司同期净资产收益率预计将升至17%,这一事实可以用派息率下降来解释。
结论
总体而言,我们对保利物业服务的表现相当满意。特别是,我们喜欢该公司对其业务进行大量再投资,并以高回报率进行投资。不出所料,这导致了令人印象深刻的收益增长。既然如此,一项对最新分析师预测的研究表明,预计该公司未来的收益增长将放缓。要了解更多分析师对该公司的最新预测,请查看分析师对该公司预测的可视化。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
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。