Suzhou Delphi Laser Co., Ltd. (SHSE:688170) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
Suzhou Delphi Laser Co., Ltd. (SHSE:688170) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
Suzhou Delphi Laser (SHSE:688170) has had a rough three months with its share price down 15%. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. In this article, we decided to focus on Suzhou Delphi Laser'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. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
Check out our latest analysis for Suzhou Delphi Laser
How Is ROE Calculated?
Return on equity 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 Suzhou Delphi Laser is:
5.7% = CN¥72m ÷ CN¥1.3b (Based on the trailing twelve months to September 2022).
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.06 in profit.
What Is The Relationship Between ROE And Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
Suzhou Delphi Laser's Earnings Growth And 5.7% ROE
At first glance, Suzhou Delphi Laser's ROE doesn't look very promising. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 8.7% either. However, we we're pleasantly surprised to see that Suzhou Delphi Laser grew its net income at a significant rate of 41% in the last five years. Therefore, there could be other reasons behind 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.
We then performed a comparison between Suzhou Delphi Laser's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 36% in the same period.
SHSE:688170 Past Earnings Growth December 3rd 2022Earnings 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). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. 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 Suzhou Delphi Laser is trading on a high P/E or a low P/E, relative to its industry.
Is Suzhou Delphi Laser Making Efficient Use Of Its Profits?
Suzhou Delphi Laser doesn't pay any dividend currently which essentially means that it has been reinvesting all of its profits into the business. This definitely contributes to the high earnings growth number that we discussed above.
Conclusion
On the whole, we do feel that Suzhou Delphi Laser has some positive attributes. With a high rate of reinvestment, albeit at a low ROE, the company has managed to see a considerable growth in its earnings. 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. Our risks dashboard will have the 1 risk we have identified for Suzhou Delphi Laser.
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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.
蘇州德爾福激光(上海證券交易所代碼:688170)經歷了艱難的三個月,股價下跌了15%。但如果你密切關注,你可能會發現,該公司的關鍵財務指標看起來相當不錯,這可能意味着,鑑於市場通常會獎勵更具彈性的長期基本面因素,該股可能會在長期內上漲。在本文中,我們決定將重點放在蘇州德爾福激光的淨資產收益率上。
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,它是用來評估一家公司相對於其權益資本的盈利能力。
查看我們對蘇州德爾福激光的最新分析
淨資產收益率是如何計算的?
股本回報率可使用以下公式計算:
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,蘇州德爾福激光的淨資產收益率為:
5.7%=7200萬元×13億元(以截至2022年9月的12個月為基礎)。
“回報”指的是一家公司過去一年的收益。另一種説法是,公司每持有價值1元的股權,就能賺取0.06元的利潤。
淨資產收益率與盈利增長之間有什麼關係?
我們已經證實,淨資產收益率是一家公司未來收益的有效盈利指標。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。
蘇州德爾福激光盈利增長5.7%淨資產收益率
乍一看,蘇州德爾福激光的淨資產收益率看起來並不是很有希望。一項快速的進一步研究顯示,該公司的淨資產收益率也比不上8.7%的行業平均水平。然而,令我們驚喜的是,蘇州德爾福激光在過去五年中淨收入以41%的顯著速度增長。因此,這種增長背後可能還有其他原因。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。
然後我們將蘇州德爾福激光的淨收入增長與行業進行了比較,結果顯示,公司的增長與同期36%的行業平均增長相似。
上證所:過去688170的收益增長2022年12月3日盈利增長是股票估值的一個重要因素。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)。通過這樣做,他們將知道股票是將進入清澈的藍色水域,還是等待沼澤水域。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,你可能想看看蘇州德爾福激光相對於其行業是高市盈率還是低市盈率。
蘇州德爾福激光是否有效利用了利潤?
蘇州德爾福激光目前不支付任何股息,這實質上意味着它一直在將所有利潤再投資於這項業務。這無疑是我們上面討論的高收益增長數字的原因。
結論
總體而言,我們確實覺得蘇州德爾福激光有一些積極的屬性。憑藉高再投資率,儘管淨資產收益率較低,該公司的收益實現了相當大的增長。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。我們的風險控制面板將包含我們為蘇州德爾福激光確定的1個風險。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
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。
譯文內容由第三人軟體翻譯。
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