Can Maider Medical Industry Equipment Co. Ltd.'s (SHSE:688310) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?
Can Maider Medical Industry Equipment Co. Ltd.'s (SHSE:688310) Weak Financials Pull The Plug On The Stock's Current Momentum On Its Share Price?
Maider Medical Industry Equipment's (SHSE:688310) stock is up by a considerable 65% over the past three months. However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes. In this article, we decided to focus on Maider Medical Industry Equipment's ROE.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
Check out our latest analysis for Maider Medical Industry Equipment
How To Calculate Return On Equity?
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 Maider Medical Industry Equipment is:
8.5% = CN¥65m ÷ CN¥766m (Based on the trailing twelve months to December 2022).
The 'return' is the profit over the last twelve months. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.09 in profit.
What Is The Relationship Between ROE And Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. 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. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
Maider Medical Industry Equipment's Earnings Growth And 8.5% ROE
On the face of it, Maider Medical Industry Equipment's ROE is not much to talk about. Next, when compared to the average industry ROE of 11%, the company's ROE leaves us feeling even less enthusiastic. As a result, Maider Medical Industry Equipment's flat net income growth over the past five years doesn't come as a surprise given its lower ROE.
As a next step, we compared Maider Medical Industry Equipment's net income growth with the industry and were disappointed to see that the company's growth is lower than the industry average growth of 23% in the same period.
Earnings growth is an important metric to consider when valuing a stock. 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 Maider Medical Industry Equipment fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Maider Medical Industry Equipment Making Efficient Use Of Its Profits?
Maider Medical Industry Equipment has a high three-year median payout ratio of 57% (or a retention ratio of 43%), meaning that the company is paying most of its profits as dividends to its shareholders. This does go some way in explaining why there's been no growth in its earnings.
In addition, Maider Medical Industry Equipment has been paying dividends over a period of three years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.
Conclusion
In total, we would have a hard think before deciding on any investment action concerning Maider Medical Industry Equipment. As a result of its low ROE and lack of much reinvestment into the business, the company has seen a disappointing earnings growth rate. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
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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.
Maider Medical Industry Equipment(上海證券交易所股票代碼:688310)的股票在過去三個月裡大幅上漲了65%。然而,在本文中,我們決定將重點放在其薄弱的基本面上,因為企業的長期財務業績最終決定了市場結果。在本文中,我們決定將重點放在Maider醫療行業設備的ROE上。
股本回報率(ROE)是用來評估公司管理層利用公司資本效率的關鍵指標。換句話說,這是一個衡量公司股東提供的資本回報率的盈利比率。
查看我們對Maider醫療行業設備的最新分析
如何計算股本回報率?
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,邁德醫療工業設備的淨資產收益率為:
8.5%=6500萬元×7.66億元(以截至2022年12月的12個月為基礎)。
“收益”是過去12個月的利潤。另一種說法是,公司每持有價值1元的股權,就能賺取0.09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,我們瞭解到淨資產收益率是衡量一家公司盈利能力的指標。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。一般來說,在其他條件相同的情況下,股本回報率和利潤留存較高的公司比不具備這些特徵的公司有更高的增長率。
邁德醫療設備行業盈利增長和8.5%的淨資產收益率
從表面上看,麥德醫療工業設備的ROE並沒有太多可談的。其次,與平均11%的行業淨資產收益率相比,該公司的淨資產收益率讓我們感到更不熱情。因此,Maider Medical Industry Equipment在過去五年的淨收入增長持平並不令人意外,因為其ROE較低。
作為下一步,我們將邁德醫療設備行業的淨收入增長與行業進行了比較,並失望地看到,該公司的增長低於同期23%的行業平均增長。
盈利增長是評估一隻股票時需要考慮的一個重要指標。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,Maider醫療行業設備的價值是否公平?這3個估值指標可能會幫助你做出決定。
Maider醫療行業設備是否有效地利用了其利潤?
Maider Medical Industry Equipment的三年中值派息率高達57%(或留存率為43%),這意味著該公司將大部分利潤作為股息支付給股東。這確實在一定程度上解釋了為什麼它的收益沒有增長。
此外,Maider Medical Industry Equipment在過去三年裡一直在支付股息,這表明保持股息支付對管理層來說要重要得多,即使這是以業務增長為代價的。
結論
總而言之,我們在決定任何關於Maider醫療行業設備的投資行動之前都會經過深思熟慮。由於淨資產收益率較低,對該業務的再投資不足,該公司的收益增長率令人失望。話雖如此,但從目前分析師的預估來看,我們發現該公司的盈利勢頭有望增強。這些分析師的預期是基於對該行業的廣泛預期,還是基於該公司的基本面?點擊此處進入我們分析師對該公司的預測頁面。
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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。
譯文內容由第三人軟體翻譯。
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