Power Construction Corporation of China's (SHSE:601669) Returns Have Hit A Wall
Power Construction Corporation of China's (SHSE:601669) Returns Have Hit A Wall
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. 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 Power Construction Corporation of China (SHSE:601669) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
如果我们想找到潜在的多袋装袋机,通常有一些潜在的趋势可以提供线索。通常,我们希望注意到增长的趋势 返回 在资本使用率(ROCE)方面,除此之外,还在扩大 基础 所用资本的比例。这向我们表明,它是一台复合机器,能够持续将其收益再投资到业务中并产生更高的回报。话虽如此,乍一看中国电力建设集团公司(SHSE: 601669),我们并不是对回报的趋势不屑一顾,但让我们更深入地了解一下。
Understanding Return On Capital Employed (ROCE)
了解资本使用回报率 (ROCE)
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Power Construction Corporation of China:
对于那些不确定ROCE是什么的人,它衡量的是公司从其业务中使用的资本中可以产生的税前利润金额。分析师使用这个公式来计算中国电力建设集团的计算公式:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率 = 息税前收益(EBIT)÷(总资产-流动负债)
0.047 = CN¥30b ÷ (CN¥1.2t - CN¥552b) (Based on the trailing twelve months to September 2023).
0.047 = 30亿元人民币 ÷(1.2吨人民币-552亿元人民币) (基于截至2023年9月的过去十二个月)。
So, Power Construction Corporation of China has an ROCE of 4.7%. In absolute terms, that's a low return and it also under-performs the Construction industry average of 6.8%.
因此,中国电力建设集团的投资回报率为4.7%。从绝对值来看,回报率很低,也低于建筑业6.8%的平均水平。
View our latest analysis for Power Construction Corporation of China
查看我们对中国电力建设集团公司的最新分析
Above you can see how the current ROCE for Power Construction Corporation of China 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 Power Construction Corporation of China here for free.
上面你可以看到中国电力建设集团目前的投资回报率与其先前的资本回报率相比如何,但从过去可以看出来的只有那么多。如果你愿意,可以在这里免费查看报道中国电力建设集团的分析师的预测。
So How Is Power Construction Corporation of China's ROCE Trending?
那么,中国电力建设集团的投资回报率如何走势呢?
In terms of Power Construction Corporation of China's historical ROCE trend, it doesn't exactly demand attention. Over the past five years, ROCE has remained relatively flat at around 4.7% and the business has deployed 85% more capital into its operations. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital.
就中国电力建设集团的历史投资回报率走势而言,这并不完全值得关注。在过去的五年中,投资回报率一直相对持平,约为4.7%,该业务在运营中投入的资金增加了85%。鉴于该公司增加了动用资本金额,看来已经进行的投资根本无法提供很高的资本回报率。
On a side note, Power Construction Corporation of China's current liabilities are still rather high at 46% of total assets. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.
顺便说一句,中国电力建设集团的流动负债仍然相当高,占总资产的46%。这实际上意味着供应商(或短期债权人)正在为业务的很大一部分提供资金,因此请注意,这可能会带来一些风险因素。理想情况下,我们希望看到这种情况减少,因为这将意味着减少承担风险的债务。
The Bottom Line On Power Construction Corporation of China's ROCE
中国电力建设集团公司底线
In summary, Power Construction Corporation of China has simply been reinvesting capital and generating the same low rate of return as before. And investors may be recognizing these trends since the stock has only returned a total of 1.4% to shareholders over the last five years. As a result, if you're hunting for a multi-bagger, we think you'd have more luck elsewhere.
总而言之,中国电力建设集团只是在进行资本再投资,并产生了与以前一样低的回报率。投资者可能会意识到这些趋势,因为该股在过去五年中总共只给股东带来了1.4%的回报。因此,如果你正在寻找一台多袋装机,我们认为你在其他地方会有更多的运气。
Power Construction Corporation of China does have some risks, we noticed 3 warning signs (and 1 which is significant) we think you should know about.
中国电力建设集团确实存在一些风险,我们注意到三个警告信号(其中一个是重大的),我们认为你应该知道。
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
对于那些喜欢投资稳健公司的人,可以查看这份资产负债表稳健和股本回报率高的公司的免费清单。
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