Ningbo Yongxin OpticsLtd's (SHSE:603297) stock is up by a considerable 30% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Ningbo Yongxin OpticsLtd's ROE.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
View our latest analysis for Ningbo Yongxin OpticsLtd
How Do You Calculate Return On Equity?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Ningbo Yongxin OpticsLtd is:
13% = CN¥195m ÷ CN¥1.5b (Based on the trailing twelve months to March 2022).
The 'return' is the amount earned after tax 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¥0.13.
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. 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.
Ningbo Yongxin OpticsLtd's Earnings Growth And 13% ROE
At first glance, Ningbo Yongxin OpticsLtd seems to have a decent ROE. On comparing with the average industry ROE of 8.9% the company's ROE looks pretty remarkable. Probably as a result of this, Ningbo Yongxin OpticsLtd was able to see an impressive net income growth of 24% over the last five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place.
As a next step, we compared Ningbo Yongxin OpticsLtd's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 16%.
SHSE:603297 Past Earnings Growth July 20th 2022
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. If you're wondering about Ningbo Yongxin OpticsLtd's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Is Ningbo Yongxin OpticsLtd Efficiently Re-investing Its Profits?
Ningbo Yongxin OpticsLtd has a three-year median payout ratio of 34% (where it is retaining 66% of its income) which is not too low or not too high. So it seems that Ningbo Yongxin OpticsLtd is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered.
Additionally, Ningbo Yongxin OpticsLtd has paid dividends over a period of three years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 33%. However, Ningbo Yongxin OpticsLtd's ROE is predicted to rise to 19% despite there being no anticipated change in its payout ratio.
Conclusion
On the whole, we feel that Ningbo Yongxin OpticsLtd's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
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宁波永信光学股份有限公司(上海证券交易所股票代码：603297)的股票在过去三个月里上涨了30%。考虑到市场从长期来看会奖励强劲的金融类股，我们想知道，在这种情况下，情况是否如此。在本文中，我们决定将重点放在宁波永信光学有限公司的净资产收益率上。
股本回报率(ROE)是对一家公司增值和管理投资者资金的效率的测试。简而言之，净资产收益率显示了每一美元相对于其股东投资产生的利润。
查看我们对宁波永信光学有限公司的最新分析
你如何计算股本回报率？
这个股本回报率公式是：
股本回报率=(持续经营的)净利润？股东权益
因此，根据上述公式，宁波永信光学有限公司的净资产收益率为：
13%=CN元1.95亿×CN元15亿元(以截至2022年3月的12个月为基础)。
“报税表”是过去12个月的税后收入。因此，这意味着股东每投资1元人民币，公司就会产生0.13元的利润。
净资产收益率与盈利增长有什么关系？
到目前为止，我们已经了解到净资产收益率衡量的是一家公司创造利润的效率。根据公司选择再投资或“保留”多少利润，我们就能够评估一家公司未来产生利润的能力。假设其他条件相同，与没有相同特征的公司相比，拥有更高股本回报率和更高利润保留率的公司通常会有更高的增长率。
宁波永信光学有限公司盈利增长和13%的净资产收益率
乍一看，宁波永信光学有限公司似乎拥有不错的净资产收益率。与8.9%的行业平均净资产收益率相比，该公司的净资产收益率看起来相当可观。或许正因为如此，宁波永信光学有限公司在过去五年中实现了令人印象深刻的24%的净收入增长。我们认为，可能还有其他因素在起作用。例如-高收益留存或有效的管理到位。
下一步，我们将宁波永信光学有限公司的净收入增长与行业进行了比较，令人欣喜的是，我们发现该公司看到的增长高于行业平均16%的增长。
上海证交所：过去603297的收益增长2022年7月20日
赋予一家公司价值的基础在很大程度上与其盈利增长挂钩。投资者应该尝试确定预期的收益增长或下降是否已计入价格，无论是哪种情况。这样做将有助于他们确定该股的未来看起来是光明的还是不祥的。如果你想知道宁波永信光学有限公司的估值，看看这个衡量其市盈率的指标，与其行业相比。
宁波永信光学有限公司是否有效地将利润进行了再投资？
宁波永信光学有限公司的三年中值派息率为34%(该公司保留了66%的收入)，这不是太低也不是太高。因此，宁波永信光学有限公司似乎正在以一种高效的再投资方式进行再投资，它看到了令人印象深刻的收益增长(如上所述)，并支付了丰厚的股息。
此外，宁波永信光学有限公司已在三年内分红，这意味着该公司非常认真地与股东分享利润。我们最新的分析师数据显示，该公司未来三年的派息率预计约为33%。然而，宁波永信光学有限公司的净资产收益率预计将上升至19%，尽管其派息率没有预期的变化。
结论
总体来说，我们觉得宁波永信光学有限公司的业绩是相当好的。特别是，我们喜欢该公司对其业务进行大量再投资，并以高回报率进行投资。不出所料，这导致了令人印象深刻的收益增长。话虽如此，但从目前分析师的预估来看，我们发现该公司的盈利势头有望增强。要了解更多有关该公司未来收益增长预测的信息，请查看以下内容免费报告分析师对该公司的预测，以了解更多信息。
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本文由Simply Wall St.撰写，具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论，我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议，也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意，我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。
