Zhejiang Sanhua Intelligent ControlsLtd's (SZSE:002050) stock is up by a considerable 36% over the past three months. Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to Zhejiang Sanhua Intelligent ControlsLtd's ROE today.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
See our latest analysis for Zhejiang Sanhua Intelligent ControlsLtd
How Do You Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Zhejiang Sanhua Intelligent ControlsLtd is:
16% = CN¥1.9b ÷ CN¥12b (Based on the trailing twelve months to June 2022).
The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.16 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. 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.
Zhejiang Sanhua Intelligent ControlsLtd's Earnings Growth And 16% ROE
To start with, Zhejiang Sanhua Intelligent ControlsLtd's ROE looks acceptable. On comparing with the average industry ROE of 8.0% the company's ROE looks pretty remarkable. Probably as a result of this, Zhejiang Sanhua Intelligent ControlsLtd was able to see a decent growth of 8.7% over the last five years.
We then compared Zhejiang Sanhua Intelligent ControlsLtd's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 12% in the same period, which is a bit concerning.
SZSE:002050 Past Earnings Growth September 13th 2022
Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Zhejiang Sanhua Intelligent ControlsLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Zhejiang Sanhua Intelligent ControlsLtd Efficiently Re-investing Its Profits?
Zhejiang Sanhua Intelligent ControlsLtd has a three-year median payout ratio of 48%, which implies that it retains the remaining 52% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
Moreover, Zhejiang Sanhua Intelligent ControlsLtd is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 35% over the next three years. As a result, the expected drop in Zhejiang Sanhua Intelligent ControlsLtd's payout ratio explains the anticipated rise in the company's future ROE to 21%, over the same period.
Conclusion
In total, we are pretty happy with Zhejiang Sanhua Intelligent ControlsLtd's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. As a result, the decent growth in its earnings is not surprising. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. 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.
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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.
浙江三华智能控制股份有限公司(深圳证券交易所股票代码:002050)的股票在过去三个月里上涨了36%。鉴于该公司令人印象深刻的业绩,我们决定更仔细地研究其财务指标,因为公司的长期财务健康状况通常决定着市场结果。今天我们特别关注浙江三华智能控制有限公司的净资产收益率。
股本回报率或净资产收益率是股东要考虑的一个重要因素,因为它告诉他们他们的资本再投资的效率。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。
查看我们对浙江三华智能控制有限公司的最新分析
你如何计算股本回报率?
股本回报率可使用以下公式计算:
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,浙江三华智能控制有限公司的净资产收益率为:
16%=人民币19亿元×人民币120亿元(基于截至2022年6月的12个月)。
“回报”指的是一家公司过去一年的收益。将其概念化的一种方法是,公司每持有1元人民币的股东资本,就会获得0.16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。假设其他条件不变,净资产收益率和利润保留率越高,与不一定具有这些特征的公司相比,公司的增长率就越高。
浙江三华智能控制有限公司盈利增长和16%的净资产收益率
首先,浙江三华智能控制有限公司的净资产收益率看起来可以接受。与8.0%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。或许正因为如此,浙江三华智能控制有限公司能够在过去五年中实现8.7%的可观增长。
然后我们将浙江三华智能控制有限公司的净收入增长与行业进行了比较,发现该公司的增长数字低于同期12%的行业平均增长率,这有点令人担忧。
深圳证交所:过去002050的收益增长2022年9月13日
盈利增长是评估一只股票时需要考虑的一个重要指标。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)。通过这样做,他们将知道股票是将进入清澈的蓝色水域,还是等待沼泽水域。与其他公司相比,浙江三华智能控制有限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。
浙江三华智能控制有限公司是否有效地将利润进行了再投资?
浙江三华智能控制有限公司的三年派息率中值为48%,这意味着它保留了剩余52%的利润。这表明,它的股息得到了很好的覆盖,考虑到该公司看到的可观增长,管理层似乎正在有效地对其收益进行再投资。
此外,浙江三华智能控制有限公司决心继续与股东分享利润,这是我们从其至少十年的派息历史中推断出来的。分析师现有的预估显示,该公司未来三年的派息率预计将降至35%。因此,浙江三华智能控制有限公司派息率的预期下降解释了同期该公司未来净资产收益率预期上升至21%的原因。
结论
总体而言,我们对浙江三华智能控制有限公司的表现相当满意。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。因此,其收益的可观增长并不令人意外。话虽如此,但从目前分析师的预估来看,我们发现该公司的盈利势头有望增强。这些分析师的预期是基于对该行业的广泛预期,还是基于该公司的基本面?点击此处进入我们分析师对该公司的预测页面。
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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。