With its stock down 25% over the past month, it is easy to disregard Anhui Xinbo Aluminum (SZSE:003038). However, stock prices are usually driven by a company's financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Anhui Xinbo Aluminum's ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits.
See our latest analysis for Anhui Xinbo Aluminum
How Do You Calculate Return On Equity?
ROE 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 Anhui Xinbo Aluminum is:
8.8% = CN¥156m ÷ CN¥1.8b (Based on the trailing twelve months to June 2022).
The 'return' is the profit over the last twelve months. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.09.
What Is The Relationship Between ROE And Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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 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.
Anhui Xinbo Aluminum's Earnings Growth And 8.8% ROE
At first glance, Anhui Xinbo Aluminum's ROE doesn't look very promising. However, given that the company's ROE is similar to the average industry ROE of 8.9%, we may spare it some thought. Looking at Anhui Xinbo Aluminum's exceptional 31% five-year net income growth in particular, we are definitely impressed. Considering the moderately low ROE, it is quite possible that there might be some other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place.
We then compared Anhui Xinbo Aluminum's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 18% in the same period.
SZSE:003038 Past Earnings Growth September 20th 2022
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Anhui Xinbo Aluminum is trading on a high P/E or a low P/E, relative to its industry.
Is Anhui Xinbo Aluminum Making Efficient Use Of Its Profits?
Anhui Xinbo Aluminum's three-year median payout ratio to shareholders is 23%, which is quite low. This implies that the company is retaining 77% of its profits. So it seems like the management is reinvesting profits heavily to grow its business and this reflects in its earnings growth number.
While Anhui Xinbo Aluminum has seen growth in its earnings, it only recently started to pay a dividend. It is most likely that the company decided to impress new and existing shareholders with a dividend.
Conclusion
On the whole, we do feel that Anhui Xinbo Aluminum has some positive attributes. Despite its low rate of return, the fact that the company reinvests a very high portion of its profits into its business, no doubt contributed to its high earnings growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts 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.
安徽鑫博鋁業(SZSE:003038)的股價在過去一個月下跌了25%,人們很容易對其置之不理。然而,股價通常是由公司的長期財務狀況推動的,在這種情況下,財務狀況看起來相當不錯。具體地説,我們決定在本文中研究安徽鑫博鋁業的淨資產收益率。
股本回報率(ROE)是用來評估公司管理層利用公司資本效率的關鍵指標。換句話説,它揭示了該公司成功地將股東投資轉化為利潤。
請看我們對安徽鑫博鋁業的最新分析
你如何計算股本回報率?
可使用以下公式計算淨資產收益率:
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,安徽鑫博鋁業的淨資產收益率為:
8.8%=CN元1.56億×CN元18億元(基於截至2022年6月的12個月)。
“收益”是過去12個月的利潤。因此,這意味着股東每投資1元人民幣,公司就會產生0.09元的利潤。
淨資產收益率與盈利增長之間有什麼關係?
到目前為止,我們已經瞭解到淨資產收益率衡量的是一家公司創造利潤的效率。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。假設其他條件相同,與沒有相同特徵的公司相比,擁有更高股本回報率和更高利潤保留率的公司通常會有更高的增長率。
安徽鑫博鋁業盈利增長8.8%淨資產收益率
乍一看,安徽鑫博鋁業的淨資產收益率看起來並不是很有希望。然而,鑑於該公司的淨資產收益率(ROE)與8.9%的行業平均ROE相似,我們或許可以省去一些思考。尤其是安徽鑫博鋁業連續五年實現31%的超常規淨利潤增長,給我們留下了深刻印象。考慮到較低的淨資產收益率,很有可能還有一些其他方面正在積極影響公司的收益增長。例如-高收益留存或有效的管理到位。
然後,我們將安徽鑫博鋁業的淨收入增長與行業進行了比較,我們高興地看到,與同期18%的行業增長率相比,該公司的增長數字更高。
深圳證交所:過去003038的收益增長2022年9月20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。投資者下一步需要確定的是,預期的收益增長是否已經計入了股價。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。衡量預期收益增長的一個很好的指標是市盈率,它根據一隻股票的盈利前景決定市場願意為其支付的價格。因此,你可能想看看安徽鑫博鋁業相對於其行業的市盈率是高還是低。
安徽鑫博鋁業是否高效利用利潤?
安徽鑫博鋁業對股東的三年派息率中值為23%,相當低。這意味着該公司將保留77%的利潤。因此,管理層似乎正在對利潤進行大量再投資,以增長業務,這反映在其收益增長數字上。
雖然安徽鑫博鋁業的盈利有所增長,但它最近才開始派發股息。最有可能的是,該公司決定用股息給新股東和現有股東留下深刻印象。
結論
總體而言,我們確實覺得安徽鑫博鋁業有一些積極的屬性。儘管回報率很低,但該公司將很高比例的利潤再投資於業務,無疑是其高收益增長的原因。既然如此,最新的分析師預測顯示,該公司的收益將繼續增長。要了解更多分析師對該公司的最新預測,請查看分析師對該公司預測的可視化。
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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。