Mingteng International Corporation Inc.'s (NASDAQ:MTEN) Financials Are Too Obscure To Link With Current Share Price Momentum: What's In Store For the Stock?

Simply Wall St.10-22

Most readers would already be aware that Mingteng International's (NASDAQ:MTEN) stock increased significantly by 91% over the past three months. However, we decided to pay attention to the company's...

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However, we decided to pay attention to the company's...</p>\n\n<a href=\"https://simplywall.st/stocks/us/automobiles/nasdaq-mten/mingteng-international/news/mingteng-international-corporation-incs-nasdaqmten-financial\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4112","symbol_name":"金融交易所和数据","start_time":0,"source_url":"https://simplywall.st/stocks/us/automobiles/nasdaq-mten/mingteng-international/news/mingteng-international-corporation-incs-nasdaqmten-financial","article_id":"2477657863","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4012000-choice1-main-header/1585186661661"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477657863","pubTimestamp":1729612295,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Most readers would already be aware that Mingteng International's (NASDAQ:MTEN) stock increased significantly by 91...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4112":"金融交易所和数据","BK4124":"机动车零配件与设备","NDAQ":"纳斯达克OMX交易所","QID":"纳指两倍做空ETF",".IXIC":"NASDAQ Composite","BK4585":"ETF&股票定投概念","SQQQ":"纳指三倍做空ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","QLD":"纳指两倍做多ETF","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","MTEN":"铭腾国际","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","PSQ":"纳指反向ETF","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4588":"碎股","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","TQQQ":"纳指三倍做多ETF","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC"},"translate_title":"明腾国际股份有限公司（纳斯达克股票代码：MTEN）的财务状况过于模糊，无法与当前的股价势头联系起来：该股的前景如何？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NDAQ":1,"MTEN":1,".IXIC":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"Most readers would already be aware that Mingteng International's (NASDAQ:MTEN) stock increased significantly by 91% over the past three months.   However, we decided to pay attention to the company's fundamentals which don't appear to give a clear sign about the company's financial health.      In this article, we decided to focus on Mingteng International'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.  See our latest analysis for Mingteng International  How Do You 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 Mingteng International is:7.2% = US$679k ÷ US$9.5m (Based on the trailing twelve months to June 2024). The 'return' is the profit over the last twelve months.  Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.07 in profit.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  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.  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.  Mingteng International's Earnings Growth And 7.2% ROE  On the face of it, Mingteng International's ROE is not much to talk about.   Next, when compared to the average industry ROE of 10%, the company's ROE leaves us feeling even less enthusiastic.   Therefore, it might not be wrong to say that the five year net income decline of 23% seen by Mingteng International was probably the result of it having a lower ROE.  We believe that there also might be other aspects that are negatively influencing the company's earnings prospects.  For instance, the company has a very high payout ratio, or is faced with competitive pressures.     So, as a next step, we compared Mingteng International's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 16% over the last few years.   NasdaqCM:MTEN Past Earnings Growth October 22nd 2024 Earnings growth is a huge factor in stock valuation.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.  Doing so will help them establish if the stock's future looks promising or ominous.    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 Mingteng International is trading on a high P/E or a low P/E, relative to its industry.    Is Mingteng International Using Its Retained Earnings Effectively?    Mingteng International doesn't pay any regular dividends, meaning that potentially all of its profits are being reinvested in the business, which doesn't explain why the company's earnings have shrunk if it is retaining all of its profits.  It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.     Summary    In total, we're a bit ambivalent about Mingteng International's performance.      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.       Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business.    Our risks dashboard would have the 4 risks we have identified for Mingteng International.    New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477657863"}