What Easou Technology Holdings Limited's (HKG:2550) ROE Can Tell Us

Simply Wall St.12-07

Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2489221694?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/4311000-choice2-main-header/1585186819541","is_english":true,"pubTime":"2024-12-07 07:08","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2489221694","market":"us","top_or_hot":-1,"title":"What Easou Technology Holdings Limited's (HKG:2550) ROE Can Tell Us","media":"Simply Wall St.","content":"<div>\n<p>Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-2550/easou-technology-holdings-shares/news/what-easou-technology-holdings-limiteds-hkg2550-roe-can-tell\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Easou Technology Holdings Limited's (HKG:2550) ROE Can Tell Us</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Easou Technology Holdings Limited's (HKG:2550) ROE Can Tell Us\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-07 07:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/media/hkg-2550/easou-technology-holdings-shares/news/what-easou-technology-holdings-limiteds-hkg2550-roe-can-tell><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-2550/easou-technology-holdings-shares/news/what-easou-technology-holdings-limiteds-hkg2550-roe-can-tell\">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":"ROE","symbol_name":"ASTORIA US QUALITY KINGS ETF","start_time":0,"source_url":"https://simplywall.st/stocks/hk/media/hkg-2550/easou-technology-holdings-shares/news/what-easou-technology-holdings-limiteds-hkg2550-roe-can-tell","article_id":"2489221694","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4311000-choice2-main-header/1585186819541"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489221694","pubTimestamp":1733526534,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"ROE":"ASTORIA US QUALITY KINGS ETF","BK1137":"广告","02550":"宜搜科技"},"translate_title":"易搜科技控股有限公司（HKG：2550）的ROE可以告诉我们什么","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"02550":1,"ROE":1},"content_text":"Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  To keep the lesson grounded in practicality, we'll use ROE to better understand Easou Technology Holdings Limited (HKG:2550).  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.  Put another way, it reveals the company's success at turning shareholder investments into profits.  Check out our latest analysis for Easou Technology Holdings  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 Easou Technology Holdings is:9.1% = CN¥41m ÷ CN¥455m (Based on the trailing twelve months to June 2024). The 'return' is the amount earned after tax over the last twelve months.  One way to conceptualize this is that for each HK$1 of shareholders' capital it has, the company made HK$0.09 in profit.   Does Easou Technology Holdings Have A Good ROE?  Arguably the easiest way to assess company's ROE is to compare it with the average in its industry.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   The image below shows that Easou Technology Holdings has an ROE that is roughly in line with the Media industry average (9.1%).  SEHK:2550 Return on Equity December 6th 2024 That's neither particularly good, nor bad.    Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels.  If a company takes on too much debt, it is at higher risk of defaulting on interest payments.    Our risks dashboardshould have the 3 risks we have identified for Easou Technology Holdings.    Why You Should Consider Debt When Looking At ROE  Companies usually need to invest money to grow their profits.  That cash can come from retained earnings, issuing new shares (equity), or debt.  In the case of the first and second options, the ROE will reflect this use of cash, for growth.  In the latter case, the debt used for growth will improve returns, but won't affect the total equity.  Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.  Combining Easou Technology Holdings' Debt And Its 9.1% Return On Equity  While Easou Technology Holdings does have some debt, with a debt to equity ratio of just 0.28, we wouldn't say debt is excessive.    Its ROE isn't particularly impressive, but the debt levels are quite modest, so the business probably has some real potential.   Careful use of debt to boost returns is often very good for shareholders. However, it could reduce the company's ability to take advantage of future opportunities.     Conclusion    Return on equity is one way we can compare its business quality of different companies.  In our books, the highest quality companies have high return on equity, despite low debt.  All else being equal, a higher ROE is better.  Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  It is important to consider other factors, such as future profit growth -- and how much investment is required going forward.   Check the past profit growth by Easou Technology Holdings by looking at this visualization of past earnings, revenue and cash flow.  But note: Easou Technology Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Valuation is complex, but we're here to simplify it.Discover if Easou Technology Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave 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":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"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/2489221694"}