How to distinguish the quality of listed companies?

1, the prospect of the company's industry is the first, and logical analysis is higher than stock selection. For example, if we enter a well-off society in the future, consumption upgrading, medicine, and national emerging industries should be industries with high prosperity. On the contrary, the growth space of many traditional industries is very limited, even in the stock game. Then the optional listed companies are limited, and only leading stocks can be selected, depending on the valuation level.

2. Whether it is in the leading position in the industry, whether it has a large market share and whether it has pricing power is also an important condition for evaluating a company. If it is in a leading position in the industry, or in a leading position, with stable growth and rising market share, it shows that the company is more competitive. If we can still have industry pricing power, the leading position will be more obvious, because the performance of companies without pricing power will fluctuate greatly.

3. Whether the financial situation in the past few years is healthy, whether the gross profit margin has risen steadily, whether the return on net assets can exceed 12%, and whether the financial situation is good can be evaluated through the analysis of various indicators to preliminarily confirm whether the company has health problems. The big indicator is whether the gross profit margin is stable or even rising, and the return on net assets should not be too low. The higher the general requirement 15%, the better, indicating that the company has strong profitability.

4. Do you have the ability to pay dividends? Can the dividend rate reach a fixed deposit with a term of more than one year? The higher the better, can the dividend amount exceed the total amount of financing? It is also very important that many new shares reach more than half of the financing amount and rise steadily.

5. The moat of the company is irreplaceable and competitive. This requires listed companies to have unique product or technical advantages or marketing advantages.

6. Is the main business focused enough? It cannot involve more than two industries.

Tips: The above instructions are for reference only and do not make any suggestions. If you need to solve specific problems (especially in the fields of law, accounting and medicine), I suggest you consult professionals in related fields in detail.

Reply time: 202 1- 10-26. Please refer to the latest business changes announced by Ping An Bank in official website.