Most readers would already be aware that HiVi Acoustics Technology's (SZSE:002888) stock increased significantly by 36% over the past month. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Particularly, we will be paying attention to HiVi Acoustics Technology's ROE today.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
View our latest analysis for HiVi Acoustics Technology
How To Calculate Return On Equity?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for HiVi Acoustics Technology is:
4.4% = CN¥18m ÷ CN¥422m (Based on the trailing twelve months to March 2022).
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each CN¥1 of shareholders' capital it has, the company made CN¥0.04 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 HiVi Acoustics Technology's Earnings Growth And 4.4% ROE
It is hard to argue that HiVi Acoustics Technology's ROE is much good in and of itself. Not just that, even compared to the industry average of 11%, the company's ROE is entirely unremarkable. Therefore, it might not be wrong to say that the five year net income decline of 7.2% seen by HiVi Acoustics Technology was possibly a result of it having a lower ROE. We reckon that there could also be other factors at play here. For example, the business has allocated capital poorly, or that the company has a very high payout ratio.
However, when we compared HiVi Acoustics Technology's growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 11% in the same period. This is quite worrisome.
SZSE:002888 Past Earnings Growth July 12th 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). Doing so will help them establish if the stock's future looks promising or ominous. Is HiVi Acoustics Technology fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is HiVi Acoustics Technology Efficiently Re-investing Its Profits?
While the company did payout a portion of its dividend in the past, it currently doesn't pay a dividend. This implies that potentially all of its profits are being reinvested in the business.
Summary
On the whole, we feel that the performance shown by HiVi Acoustics Technology can be open to many interpretations. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. So far, we've only made a quick discussion around the company's earnings growth. So it may be worth checking this free detailed graph of HiVi Acoustics Technology's past earnings, as well as revenue and cash flows to get a deeper insight into the company's performance.
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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.
大多數讀者應該已經知道，海威聲學科技(SZSE：002888)的股票在過去一個月裏大幅上漲了36%。然而，我們想知道該公司不一致的財務數據是否會對當前的股價勢頭產生不利影響。今天，我們將特別關注HiVi Acoustics Technology的ROE。
淨資產收益率，即股本回報率，是評估一家公司從股東那裏獲得投資回報的有效程度的有用工具。簡而言之，它衡量的是一家公司相對於股東權益的盈利能力。
查看我們對HiVi聲學技術的最新分析
如何計算股本回報率？
這個淨資產收益率公式是：
股本回報率=(持續經營的)淨利潤？股東權益
因此，根據上述公式，HiVi聲學技術的ROE為：
4.4%=CN元1800萬×CN元4.22億元(基於截至2022年3月的12個月)。
“回報”指的是企業在過去一年中獲得的收入。一種概念化的方法是，公司每擁有1元人民幣的股東資本，就會獲得0.04元人民幣的利潤。
為什麼淨資產收益率對收益增長很重要？
我們已經證實，淨資產收益率是一家公司未來收益的有效盈利指標。根據公司選擇再投資或“保留”多少利潤，我們就能夠評估一家公司未來產生利潤的能力。一般來説，在其他條件相同的情況下，股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
HiVi聲學科技盈利增長與淨資產收益率4.4%的並列比較
很難説HiVi Acoustics Technology的ROE本身就很好。不僅如此，即使與11%的行業平均水平相比，該公司的淨資產收益率(ROE)也完全不起眼。因此，説HiVi Acoustics Technology的五年淨收入下降7.2%可能是由於其ROE較低，這可能是正確的。我們認為，可能還有其他因素在起作用。例如，企業的資本配置不佳，或者公司的派息率非常高。
然而，當我們將HiVi Acoustics Technology的增長與行業進行比較時發現，儘管該公司的收益一直在萎縮，但同期該行業的收益增長了11%。這相當令人擔憂。
深圳證交所：過去002888的收益增長2022年7月12日
賦予一家公司價值的基礎在很大程度上與其盈利增長掛鈎。對於投資者來説，重要的是知道市場是否已經消化了公司預期的收益增長(或下降)。這樣做將有助於他們確定該股的未來看起來是光明的還是不祥的。與其他公司相比，HiVi聲學技術的價值是否公平？這3個估值指標可能會幫助你做出決定。
HiVi聲學技術是否有效地將其利潤進行了再投資？
雖然該公司過去確實支付了一部分股息，但目前它不支付股息。這意味着，它的所有利潤可能都將再投資於該業務。
摘要
總體來説，我們覺得HiVi聲學科技展示的表現可以有多種解讀。儘管它似乎保留了大部分利潤，但鑑於淨資產收益率較低，投資者可能終究不會從所有這些再投資中受益。低收益增長率表明我們的理論是正確的。到目前為止，我們只是圍繞該公司的收益增長進行了簡短的討論。所以也許有必要檢查一下免費 詳細圖表瞭解HiVi Acoustics Technology過去的收益，以及收入和現金流，以更深入地瞭解公司的業績。
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本文由Simply Wall St.撰寫，具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
