Jin Medical International Ltd.'s (NASDAQ:ZJYL) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
Jin Medical International Ltd.'s (NASDAQ:ZJYL) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?
It is hard to get excited after looking at Jin Medical International's (NASDAQ:ZJYL) recent performance, when its stock has declined 73% over the past three months. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. In this article, we decided to focus on Jin Medical International's ROE.
看了金医疗国际(纳斯达克股票代码:ZJYL)最近的表现,很难感到兴奋,当时其股票在过去三个月中下跌了73%。但是,如果你密切关注,你可能会发现其关键财务指标看起来相当不错,考虑到市场通常会奖励更具弹性的长期基本面,这可能意味着该股有可能在长期内上涨。在这篇文章中,我们决定重点关注金医疗国际的投资回报率。
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回报率或投资回报率是股东需要考虑的重要因素,因为它可以告诉他们资本再投资的有效性。简而言之,它衡量公司相对于股东权益的盈利能力。
How Is ROE Calculated?
ROE 是如何计算的?
The formula for ROE is:
ROE 的公式是:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润(来自持续经营业务)÷ 股东权益
So, based on the above formula, the ROE for Jin Medical International is:
因此,根据上述公式,金医疗国际的投资回报率为:
12% = US$2.9m ÷ US$24m (Based on the trailing twelve months to September 2023).
12% = 290 万美元 ÷ 2,400 万美元(基于截至2023年9月的过去十二个月)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.12 in profit.
“回报” 是过去十二个月的税后收入。另一种思考方式是,每持有价值1美元的股权,该公司就能获得0.12美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系?
So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. 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.
到目前为止,我们已经了解到,投资回报率是衡量公司盈利能力的指标。然后,我们能够评估公司的收益增长潜力,具体取决于公司对这些利润进行再投资或 “保留” 了多少及其有效性。假设其他条件都一样,与功能不相同的公司相比,具有更高股本回报率和更高利润保留率的公司通常具有更高的增长率。
A Side By Side comparison of Jin Medical International's Earnings Growth And 12% ROE
金医疗国际的收益增长和12%的投资回报率的并排比较
To start with, Jin Medical International's ROE looks acceptable. Even when compared to the industry average of 11% the company's ROE looks quite decent. For this reason, Jin Medical International's five year net income decline of 3.4% raises the question as to why the decent ROE didn't translate into growth. We reckon that there could be some other factors at play here that are preventing the company's growth. Such as, the company pays out a huge portion of its earnings as dividends, or is faced with competitive pressures.
首先,Jin Medical International的投资回报率似乎可以接受。即使与行业平均水平的11%相比,该公司的投资回报率也相当不错。出于这个原因,Jin Medical International的五年净收入下降了3.4%,这就提出了一个问题,即为什么体面的投资回报率没有转化为增长。我们认为,这里可能还有其他一些因素在起作用,阻碍了公司的发展。例如,该公司将其收益的很大一部分作为股息支付,或者面临竞争压力。
That being said, we compared Jin Medical International's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 11% in the same 5-year period.
话虽如此,我们将Jin Medical International的表现与该行业的表现进行了比较,当我们发现尽管该公司缩减了收益,但该行业在5年同期以11%的速度增长了收益时,我们对此感到担忧。
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Jin Medical International fairly valued compared to other companies? These 3 valuation measures might help you decide.
收益增长是对股票进行估值时要考虑的重要指标。无论情况如何,投资者都应设法确定预期的收益增长或下降是否已计入其中。通过这样做,他们将知道股票是走向清澈的蓝色海水,还是沼泽的水域在等着你。与其他公司相比,金医疗国际的估值是否合理?这3种估值指标可能会帮助您做出决定。
Is Jin Medical International Making Efficient Use Of Its Profits?
Jin Medical International 是否在有效利用其利润?
Jin Medical International doesn't pay any regular dividends, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business. So there could be some other explanations in that regard. For instance, the company's business may be deteriorating.
Jin Medical International不支付任何定期股息,这意味着该公司保留了所有利润,这使我们想知道,如果它无法利用收益来发展业务,为什么还要保留收益。因此,在这方面可能还有其他解释。例如,该公司的业务可能正在恶化。
Summary
摘要
In total, it does look like Jin Medical International has some positive aspects to its business. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return and is reinvesting ma huge portion of its profits. By the looks of it, there could be some other factors, not necessarily in control of the business, that's preventing growth. While we won't completely dismiss the company, what we would do, is try to ascertain how risky the business is to make a more informed decision around the company. Our risks dashboard would have the 2 risks we have identified for Jin Medical International.
总的来说,金医疗国际的业务看起来确实有一些积极的方面。但是,低收益增长有点令人担忧,特别是考虑到该公司的回报率很高,并且正在将很大一部分利润再投资。从表面上看,可能还有其他一些因素阻碍了增长,这些因素不一定是业务的控制。虽然我们不会完全解散公司,但我们要做的是努力确定业务的风险,以便在公司周围做出更明智的决定。我们的风险仪表板将包含我们为Jin Medical International确定的两种风险。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。