FuJian YanJing HuiQuan BreweryLtd's (SHSE:600573) stock is up by a considerable 20% over the past week. 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 FuJian YanJing HuiQuan BreweryLtd's ROE.
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
Check out our latest analysis for FuJian YanJing HuiQuan BreweryLtd
How Is ROE Calculated?
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 FuJian YanJing HuiQuan BreweryLtd is:
3.2% = CN¥39m ÷ CN¥1.2b (Based on the trailing twelve months to September 2022).
The 'return' is the profit over the last twelve months. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.03 in profit.
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.
FuJian YanJing HuiQuan BreweryLtd's Earnings Growth And 3.2% ROE
It is quite clear that FuJian YanJing HuiQuan BreweryLtd's ROE is rather low. Even compared to the average industry ROE of 16%, the company's ROE is quite dismal. However, the moderate 12% net income growth seen by FuJian YanJing HuiQuan BreweryLtd over the past five years is definitely a positive. We reckon that there could be other factors at play here. 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.
We then compared FuJian YanJing HuiQuan BreweryLtd's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 19% in the same period, which is a bit concerning.
SHSE:600573 Past Earnings Growth November 8th 2022
Earnings growth is an important metric to consider when valuing a stock. 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 FuJian YanJing HuiQuan BreweryLtd fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is FuJian YanJing HuiQuan BreweryLtd Efficiently Re-investing Its Profits?
FuJian YanJing HuiQuan BreweryLtd has a three-year median payout ratio of 28%, which implies that it retains the remaining 72% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently.
Besides, FuJian YanJing HuiQuan BreweryLtd has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.
Conclusion
On the whole, we do feel that FuJian YanJing HuiQuan BreweryLtd has some positive attributes. That is, a decent growth in earnings backed by a high rate of reinvestment. However, we do feel that that earnings growth could have been higher if the business were to improve on the low ROE rate. Especially given how the company is reinvesting a huge chunk of its profits. 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 1 risk we have identified for FuJian YanJing HuiQuan BreweryLtd 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.
福建燕京滙泉啤酒股份有限公司(上海證券交易所股票代碼：600573)的股票在過去一週裏上漲了20%。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福建燕京滙泉啤酒有限公司的淨資產收益率上。
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，淨資產收益率顯示了每一美元相對於其股東投資產生的利潤。
查看我們對福建燕京滙泉啤酒有限公司的最新分析
淨資產收益率是如何計算的？
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，福建燕京滙泉啤酒有限公司的淨資產收益率為：
3.2%=CN元3900萬×CN元12億元(基於截至2022年9月的12個月的跟蹤數據)。
“收益”是過去12個月的利潤。這意味着，股東權益每增加1元，公司就會產生0.03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。
福建燕京滙泉啤酒有限公司盈利增長3.2%淨資產收益率
很明顯，福建燕京滙泉啤酒有限公司的淨資產收益率(ROE)相當低。即使與行業平均16%的淨資產收益率相比，該公司的淨資產收益率也相當慘淡。然而，福建燕京滙泉啤酒有限公司在過去五年中實現了12%的適度淨收入增長，這無疑是一個積極的因素。我們認為，可能還有其他因素在起作用。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。
然後，我們將福建燕京滙泉啤酒有限公司的淨收入增長與行業進行了比較，發現該公司的增長數字低於同期行業平均19%的增長率，這有點令人擔憂。
上證所：過去600573的收益增長2022年11月8日
盈利增長是評估一隻股票時需要考慮的一個重要指標。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，福建燕京滙泉啤酒有限公司的估值是否公平？這3個估值指標可能會幫助你做出決定。
福建燕京滙泉啤酒有限公司是否有效地將利潤進行了再投資？
福建燕京滙泉啤酒有限公司的三年中值派息率為28%，這意味着它保留了剩餘72%的利潤。這表明，它的股息得到了很好的覆蓋，考慮到該公司看到的可觀增長，管理層似乎正在有效地對其收益進行再投資。
此外，福建燕京滙泉啤酒有限公司已經分紅至少十年或更長時間。這表明該公司致力於與股東分享利潤。
結論
總體而言，我們確實覺得福建燕京滙泉啤酒有限公司有一些積極的屬性。也就是説，在高再投資率的支持下，收益實現了可觀的增長。然而，我們確實認為，如果業務在低淨資產收益率的基礎上有所改善，收益增長可能會更高。尤其是考慮到該公司正在對其利潤的一大部分進行再投資。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。要了解我們為福建燕京滙泉啤酒有限公司確定的1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。
