Most readers would already be aware that Kunshan GuoLi Electronic Technology's (SHSE:688103) stock increased significantly by 82% over the past three months. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Kunshan GuoLi Electronic Technology's ROE.
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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
View our latest analysis for Kunshan GuoLi Electronic 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 Kunshan GuoLi Electronic Technology is:
7.9% = CN¥77m ÷ CN¥964m (Based on the trailing twelve months to March 2022).
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.08 in profit.
What Has ROE Got To Do With Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. 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.
A Side By Side comparison of Kunshan GuoLi Electronic Technology's Earnings Growth And 7.9% ROE
On the face of it, Kunshan GuoLi Electronic Technology's ROE is not much to talk about. However, its ROE is similar to the industry average of 8.7%, so we won't completely dismiss the company. Particularly, the exceptional 35% net income growth seen by Kunshan GuoLi Electronic Technology over the past five years is pretty remarkable. Given the slightly low ROE, it is likely that there could be some other aspects that are driving this growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.
Next, on comparing with the industry net income growth, we found that Kunshan GuoLi Electronic Technology's growth is quite high when compared to the industry average growth of 14% in the same period, which is great to see.
SHSE:688103 Past Earnings Growth July 18th 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. Is Kunshan GuoLi Electronic Technology fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Kunshan GuoLi Electronic Technology Making Efficient Use Of Its Profits?
Kunshan GuoLi Electronic Technology's three-year median payout ratio is a pretty moderate 34%, meaning the company retains 66% of its income. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Kunshan GuoLi Electronic Technology is reinvesting its earnings efficiently.
Conclusion
On the whole, we do feel that Kunshan GuoLi Electronic Technology has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. 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. To know the 4 risks we have identified for Kunshan GuoLi Electronic Technology visit our risks dashboard for free.
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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,崑山國利電子科技(上海證券交易所股票代碼:688103)的股票在過去三個月裏大幅上漲了82%。正如大多數人都知道的那樣,基本面因素通常是長期市場價格走勢的指引,因此我們決定今天查看該公司的關鍵財務指標,以確定它們是否對最近的價格走勢起到了作用。在本文中,我們決定將重點放在崑山國利電子科技的淨資產收益率上。
股本回報率或淨資產收益率是股東要考慮的一個重要因素,因為它告訴他們他們的資本再投資的效率。簡而言之,它是用來評估一家公司相對於其權益資本的盈利能力。
查看我們對崑山國力電子科技的最新分析
淨資產收益率是如何計算的?
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,崑山國力電子科技的淨資產收益率為:
7.9%=7700萬元×9.64億元(以截至2022年3月的12個月為基礎)。
“回報”就是年度利潤。另一種説法是,公司每持有價值1元的股權,就能賺取0.08元的利潤。
淨資產收益率與盈利增長有什麼關係?
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。根據公司將這些利潤再投資或“保留”多少,以及這樣做的效率如何,我們就能夠評估一家公司的收益增長潛力。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。
崑山國力電子科技盈利增長與淨資產收益率7.9%的並列比較
從表面上看,崑山國力電子科技的ROE並沒有太多可談。不過,其ROE接近8.7%的行業平均水平,因此我們不會完全對該公司不屑一顧。特別值得一提的是,崑山國力電子科技在過去五年中實現了35%的超常淨收入增長,這是相當了不起的。鑑於淨資產收益率略低,很可能還有其他一些方面在推動這一增長。例如,公司管理層可能做出了一些良好的戰略決策,或者公司的派息率較低。
接下來,對比行業淨收入增長,我們發現崑山國力電子科技的增長與同期14%的行業平均增長相比是相當高的,這是非常可喜的。
上海證券交易所:過去688103的收益增長2022年7月18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。與其他公司相比,崑山國力電子科技的估值是否公平?這3個估值指標可能會幫助你做出決定。
崑山國力電子科技是否高效利用利潤?
崑山國利電子科技的三年中值派息率為34%,相當適中,這意味着該公司保留了66%的收入。這表明它的股息得到了很好的覆蓋,考慮到我們上面討論的高增長,崑山國利電子科技似乎正在有效地將其收益進行再投資。
結論
總體來説,我們確實感覺到崑山國力電子科技有一些積極的屬性。儘管回報率很低,但由於對業務進行了大量再投資,該公司實現了令人印象深刻的收益增長。雖然我們不會完全解僱這家公司,但我們要做的是努力確定這項業務在公司周圍做出更明智的決定的風險有多大。要了解我們為崑山國利電子科技確定的4個風險,請免費訪問我們的風險儀錶板。
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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。