Most readers would already be aware that JH Educational Technology's (HKG:1935) stock increased significantly by 33% over the past week. Since the market usually pay for a company's long-term fundamentals, we decided to study the company's key performance indicators to see if they could be influencing the market. In this article, we decided to focus on JH Educational Technology's 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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
Check out our latest analysis for JH Educational Technology
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 JH Educational Technology is:
17% = CN¥464m ÷ CN¥2.7b (Based on the trailing twelve months to June 2022).
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every HK$1 worth of equity, the company was able to earn HK$0.17 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of JH Educational Technology's Earnings Growth And 17% ROE
At first glance, JH Educational Technology seems to have a decent ROE. Especially when compared to the industry average of 10% the company's ROE looks pretty impressive. This certainly adds some context to JH Educational Technology's exceptional 24% net income growth seen over the past five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
Next, on comparing with the industry net income growth, we found that JH Educational Technology's growth is quite high when compared to the industry average growth of 14% in the same period, which is great to see.
SEHK:1935 Past Earnings Growth December 23rd 2022
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about JH Educational Technology's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is JH Educational Technology Efficiently Re-investing Its Profits?
While the company did pay out a portion of its dividend in the past, it currently doesn't pay a dividend. This is likely what's driving the high earnings growth number discussed above.
Summary
On the whole, we feel that JH Educational Technology's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business. Our risks dashboard will have the 1 risk we have identified for JH Educational Technology.
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.
大多数读者应该已经知道,JH教育科技(HKG:1935)的股票在过去一周大幅上涨了33%。由于市场通常为公司的长期基本面买单,我们决定研究公司的关键业绩指标,看看它们是否会影响市场。在本文中,我们决定将重点放在JH教育科技的净资产收益率上。
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。简而言之,它衡量的是一家公司相对于股东权益的盈利能力。
查看我们对JH教育技术的最新分析
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,JH教育科技的净资产收益率为:
17%=CN元4.64亿×CN元27亿元(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。另一种说法是,该公司每持有价值1港元的股票,就能赚取0.17港元的利润。
为什么净资产收益率对收益增长很重要?
到目前为止,我们已经了解到净资产收益率衡量的是一家公司创造利润的效率。我们现在需要评估公司将多少利润再投资或“保留”用于未来的增长,这就让我们对公司的增长潜力有了一个了解。假设其他条件相同,与没有相同特征的公司相比,拥有更高股本回报率和更高利润保留率的公司通常会有更高的增长率。
JH教育科技盈利增长与17%净资产收益率的并列比较
乍一看,JH教育科技似乎拥有不错的净资产收益率。特别是与10%的行业平均水平相比,该公司的净资产收益率看起来相当令人印象深刻。这无疑为JH教育科技在过去五年中24%的净收入增长提供了一些背景。我们认为,可能还有其他因素在起作用。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JH教育科技的增长与同期14%的行业平均增长相比相当高,这是令人欣喜的。
联交所:1935过去盈利增长2022年12月23日
盈利增长是股票估值的一个重要因素。投资者下一步需要确定的是,预期的收益增长是否已经计入了股价。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。如果你想知道JH教育科技的估值,看看这个衡量其市盈率的指标,与其行业相比。
JH教育科技是否有效地对其利润进行了再投资?
虽然该公司过去确实支付了一部分股息,但目前不支付股息。这很可能是推动上述高收益增长数字的原因。
摘要
整体而言,我们觉得JH教育科技的表现相当不错。特别是,很高兴看到该公司在业务上投入了大量资金,并获得了高回报率,这导致了其收益的可观增长。如果该公司继续以目前的方式增长收益,考虑到每股收益对长期股价的影响,这可能会对其股价产生积极影响。别忘了,股价结果还取决于一家公司可能面临的潜在风险。因此,投资者意识到这项业务所涉及的风险很重要。我们的风险控制面板将包含我们为JH教育技术确定的1个风险。
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。