Is Zhejiang China Commodities City Group Co., Ltd.'s (SHSE:600415) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
Is Zhejiang China Commodities City Group Co., Ltd.'s (SHSE:600415) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
Zhejiang China Commodities City Group (SHSE:600415) has had a great run on the share market with its stock up by a significant 15% over the last month. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Zhejiang China Commodities City Group's ROE in this article.
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 Zhejiang China Commodities City Group
How Is ROE Calculated?
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 Zhejiang China Commodities City Group is:
11% = CN¥1.7b ÷ CN¥16b (Based on the trailing twelve months to September 2022).
The 'return' is the amount earned after tax 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¥0.11 in profit.
What Has ROE Got To Do With Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. 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 everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
Zhejiang China Commodities City Group's Earnings Growth And 11% ROE
When you first look at it, Zhejiang China Commodities City Group's ROE doesn't look that attractive. However, the fact that the company's ROE is higher than the average industry ROE of 4.4%, is definitely interesting. Still, Zhejiang China Commodities City Group has seen a flat net income growth over the past five years. Remember, the company's ROE is a bit low to begin with, just that it is higher than the industry average. Hence, this goes some way in explaining the flat earnings growth.
As a next step, we compared Zhejiang China Commodities City Group'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 3.8% in the same period.
SHSE:600415 Past Earnings Growth December 24th 2022The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Zhejiang China Commodities City Group fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Zhejiang China Commodities City Group Using Its Retained Earnings Effectively?
Despite having a moderate three-year median payout ratio of 29% (meaning the company retains71% of profits) in the last three-year period, Zhejiang China Commodities City Group's earnings growth was more or les flat. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds.
Additionally, Zhejiang China Commodities City Group has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 27%. Accordingly, forecasts suggest that Zhejiang China Commodities City Group's future ROE will be 12% which is again, similar to the current ROE.
Conclusion
Overall, we feel that Zhejiang China Commodities City Group certainly does have some positive factors to consider. However, while the company does have a decent ROE and a high profit retention, its earnings growth number is quite disappointing. This suggests that there might be some external threat to the business, that's hampering 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 latest analysts predictions for the company, check out this visualization of analyst forecasts 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.
浙江中國小商品城集團(上海證券交易所股票代碼:600415)在過去一個月中股價大幅上漲了15%。我們想知道,由於一家公司的長期基本面通常決定着市場結果,該公司的財務狀況是否以及在價格變化中扮演了什麼角色。具體地説,我們決定在本文中研究浙江中國小商品城集團的淨資產收益率。
股本回報率(ROE)是對一家公司增值和管理投資者資金的效率的測試。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。
查看我們對浙江中國小商品城集團的最新分析
淨資產收益率是如何計算的?
這個股本回報率公式是:
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,浙江中國小商品城集團的淨資產收益率為:
11%=17億元×160億元(基於截至2022年9月的12個月)。
“報税表”是過去12個月的税後收入。另一種説法是,公司每持有價值1元的股權,就能賺取0.11元的利潤。
淨資產收益率與盈利增長有什麼關係?
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。假設其他條件不變,淨資產收益率和利潤保留率越高,與不一定具有這些特徵的公司相比,公司的增長率就越高。
浙江中國小商品城集團盈利增長和淨資產收益率11%
乍一看,浙江中國小商品城集團的淨資產收益率看起來並沒有那麼誘人。然而,該公司的淨資產收益率高於4.4%的行業平均淨資產收益率,這絕對是有趣的。儘管如此,浙江中國小商品城集團在過去五年中淨利潤增長持平。請記住,該公司的淨資產收益率從一開始就有點低,只是高於行業平均水平。因此,這在一定程度上解釋了盈利增長持平的原因。
下一步,我們將浙江中國小商品城集團的淨收入增長與行業進行了比較,失望地看到該公司的增長低於同期3.8%的行業平均增長。
上證所:過去600415的收益增長2022年12月24日賦予一家公司價值的基礎在很大程度上與其盈利增長掛鈎。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。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。與其他公司相比,浙江中國小商品城集團的估值是否公平?這3個估值指標可能會幫助你做出決定。
浙江中國小商品城集團是否有效利用其留存收益?
儘管浙江中國小商品城集團過去三年的中值派息率為29%(這意味着該公司保留了71%的利潤),但該集團的收益增長大致持平。因此,可能還有其他因素在起作用,可能會阻礙經濟增長。例如,該業務一直面臨一些不利因素。
此外,浙江中國小商品城集團至少在十年內分紅,這意味着公司管理層決心分紅,即使這意味着收益幾乎沒有增長。我們最新的分析師數據顯示,該公司未來三年的派息率預計約為27%。因此,預測顯示,浙江中國小商品城集團未來的淨資產收益率將為12%,與目前的淨資產收益率相似。
結論
總體而言,我們覺得浙江中國小商品城集團確實有一些積極的因素需要考慮。然而,儘管該公司確實有不錯的淨資產收益率(ROE)和高利潤保留率,但其收益增長數字卻相當令人失望。這表明,這項業務可能面臨一些外部威脅,這正在阻礙增長。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。要了解更多分析師對該公司的最新預測,請查看分析師對該公司預測的可視化。
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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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