Wins Finance Holdings Inc., through its subsidiaries, provides financing solutions for small and medium enterprises in the People’s Republic of China.
The last earnings update was 175 days ago.
Discounted Cash Flow Calculation for NasdaqCM:WINS using Excess Returns Model Model
The calculations below outline how an intrinsic value for Wins Finance Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Wins Finance Holdings
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Wins Finance Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
Wins Finance Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Wins Finance Holdings's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Wins Finance Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Wins Finance Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Wins Finance Holdings
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Wins Finance Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Wins Finance Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Wins Finance Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Wins Finance Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 7x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Renhui Mu has been Chairman and Chief Executive Officer of Wins Finance Holdings Inc., since April 3, 2017. Mr. Mu has been the Chief Operating Officer at Wins Finance Holdings Inc. since October 2013 and served as its Co-Chief Executive Officer since October 2015 until April 3, 2017. Mr. Mu has been a Director of Wins Finance Holdings Inc. since July 25, 2016. Mr. Mu served as a Deputy General Manager of China CITIC Bank (China) Enterprise Bank Department and General Manager of CITIC Bank (China) Enterprise Bank Beijing Branch from January 2010 to September 2013. From December 2006 to December 2009, Mr. Mu served as Vice President of ABN Beijing Branch Enterprise Bank Department. From January 2005 to December 2006, Mr. Mu served as Vice President of Energy and Resource Department in HSBC Bank. From 2000 to January 2005, Mr. Mu served as investment director in the water business department of Hong Kong Inter China Holdings Company. Mr. Mu is a licensed attorney. He holds Master of civil law and commercial law from Tsinghua University and his Bachelor of Arts in English from Tsinghua University in the PRC.
Insufficient data for Renhui to compare compensation growth.
Insufficient data for Renhui to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
CFO & Director
Board of Directors Tenure
Average tenure and age of the
Wins Finance Holdings
board of directors in years:
The average tenure for the Wins Finance Holdings board of directors is less than 3 years, this suggests a new board.
Does Wins Finance Holdings Inc's (NASDAQ:WINS) PE Ratio Warrant A Sell?
and want to begin learning the link between Wins Finance Holdings Inc (NASDAQ:WINS)’s fundamentals and stock market performance. … Wins Finance Holdings Inc (NASDAQ:WINS) trades with a trailing P/E of 88.9x, which is higher than the industry average of 16.1x. … While WINS might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
NasdaqCM:WINS Past Future Earnings Oct 22nd 17 To avoid volatility in annual earnings, I use WINS's best fit version of past five year average earnings growth and turns out that the company's trailing 12 months' EPS growth of 8.95% was higher than the five-year average growth of 7.65%, indicating that its earnings growth accelerated over the past year compared to its long-term average. … WINS not only did well in my first check, its EPS growth of 8.95% over the past year turned out to be better than its Capital Markets industry's average earnings growth of 10.56%, indicating that WINS is well placed in terms of being able to deliver long-term profits in the current industry environment. … Conclusion The company exceeded expectations on both the tests, displaying a strong recent earnings growth momentum compared to its own past performance as well as the industry average.
Wins Finance Holdings Inc., through its subsidiaries, provides financing solutions for small and medium enterprises in the People’s Republic of China. It offers financial guarantees, as well as financial leasing, advisory, consultancy, and agency services in Jinzhong City, Shanxi Province, and Beijing. The company is headquartered in Beijing, the People’s Republic of China. Wins Finance Holdings Inc. is a subsidiary of Freeman FinTech Corporation Limited.
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