Most readers would already be aware that Pinlive Foods' (SZSE:300892) stock increased significantly by 25% over the past month. However, we wonder if the company's inconsistent financials would have any adverse impact on the current share price momentum. Specifically, we decided to study Pinlive Foods' 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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
See our latest analysis for Pinlive Foods
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 Pinlive Foods is:
3.6% = CN¥42m ÷ CN¥1.2b (Based on the trailing twelve months to September 2022).
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.04.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. 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.
Pinlive Foods' Earnings Growth And 3.6% ROE
As you can see, Pinlive Foods' ROE looks pretty weak. Even when compared to the industry average of 7.3%, the ROE figure is pretty disappointing. As a result, Pinlive Foods' flat earnings over the past five years doesn't come as a surprise given its lower ROE.
As a next step, we compared Pinlive Foods' net income growth with the industry and discovered that the industry saw an average growth of 7.4% in the same period.
SZSE:300892 Past Earnings Growth December 1st 2022
Earnings growth is a huge factor in stock valuation. 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 Pinlive Foods fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Pinlive Foods Efficiently Re-investing Its Profits?
Pinlive Foods' low three-year median payout ratio of 24%, (meaning the company retains76% of profits) should mean that the company is retaining most of its earnings and consequently, should see higher growth than it has reported.
Only recently, Pinlive Foods started paying a dividend. This means that the management might have concluded that its shareholders prefer dividends over earnings growth.
Summary
Overall, we have mixed feelings about Pinlive Foods. 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. Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals. You can do your own research on Pinlive Foods and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows.
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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.
大多数读者应该已经知道，Pinlive Foods(SZSE：300892)的库存在过去一个月里大幅增加了25%。然而，我们想知道该公司不一致的财务数据是否会对当前的股价势头产生不利影响。具体地说，我们决定在本文中研究Pinlive Foods的ROE。
股本回报率(ROE)是用来评估公司管理层利用公司资本效率的关键指标。简而言之，它是用来评估一家公司相对于其权益资本的盈利能力。
查看我们对Pinlive Foods的最新分析
你如何计算股本回报率？
可使用以下公式计算净资产收益率：
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，Pinlive Foods的ROE为：
3.6%=4200万元×12亿元(以截至2022年9月的12个月为基础)。
“回报”指的是一家公司过去一年的收益。因此，这意味着股东每投资1元人民币，公司就会产生0.04元的利润。
为什么净资产收益率对收益增长很重要？
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。我们现在需要评估公司将多少利润再投资或“保留”用于未来的增长，这就让我们对公司的增长潜力有了一个了解。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。
Pinlive Foods的收益增长和3.6%的净资产收益率
如你所见，Pinlive Foods的净资产收益率(ROE)看起来相当弱。即使与7.3%的行业平均水平相比，净资产收益率数字也相当令人失望。因此，Pinlive Foods过去五年的收益持平并不令人意外，因为它的净资产收益率(ROE)较低。
下一步，我们将Pinlive Foods的净收入增长与行业进行了比较，发现该行业同期的平均增长为7.4%。
深圳证交所：过去300892的收益增长2022年12月1日
盈利增长是股票估值的一个重要因素。对于投资者来说，重要的是知道市场是否已经消化了公司预期的收益增长(或下降)。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。与其他公司相比，Pinlive Foods的估值是否公平？这3个估值指标可能会帮助你做出决定。
Pinlive Foods是否有效地将其利润进行了再投资？
Pinlive Foods的三年派息率中值为24%(这意味着该公司保留了76%的利润)，这应该意味着该公司将保留大部分收益，因此，应该会看到比报告更高的增长。
直到最近，Pinlive Foods才开始派发股息。这意味着，管理层可能已经得出结论，其股东更喜欢分红，而不是收益增长。
摘要
总体而言，我们对Pinlive Foods有复杂的感受。尽管它似乎保留了大部分利润，但鉴于净资产收益率较低，投资者可能终究不会从所有这些再投资中受益。低收益增长率表明我们的理论是正确的。到目前为止，我们只是通过观察公司的基本面来了解公司过去的业绩。你可以在Pinlive Foods上做你自己的研究，并通过查看这个免费的页面来查看它过去的表现详细图表过去的收益、收入和现金流。
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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。
