Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Speaking of which, we noticed some great changes in Angang Steel's (HKG:347) returns on capital, so let's have a look.
Understanding Return On Capital Employed (ROCE)
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Angang Steel is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.14 = CN¥9.3b ÷ (CN¥101b - CN¥34b) (Based on the trailing twelve months to March 2022).
Therefore, Angang Steel has an ROCE of 14%. By itself that's a normal return on capital and it's in line with the industry's average returns of 14%.
View our latest analysis for Angang Steel
SEHK:347 Return on Capital Employed July 28th 2022
In the above chart we have measured Angang Steel's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
What Does the ROCE Trend For Angang Steel Tell Us?
Investors would be pleased with what's happening at Angang Steel. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 14%. Basically the business is earning more per dollar of capital invested and in addition to that, 25% more capital is being employed now too. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.
In Conclusion...
A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Angang Steel has. Given the stock has declined 34% in the last five years, this could be a good investment if the valuation and other metrics are also appealing. So researching this company further and determining whether or not these trends will continue seems justified.
One more thing, we've spotted 1 warning sign facing Angang Steel that you might find interesting.
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
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你知道吗,有一些财务指标可以提供潜在的多管齐下的线索?首先,我们希望看到一个经过验证的退货关于已使用资本(ROCE)的增长,其次是扩张基地已动用资本的比例。如果你看到这个,通常意味着它是一家拥有出色商业模式和大量有利可图的再投资机会的公司。说到这里,我们注意到了一些很大的变化鞍钢的(HKG:347)资本回报率,让我们来看看。
了解资本回报率(ROCE)
对于那些不确定ROCE是什么的人,它衡量的是一家公司可以从其业务中使用的资本产生的税前利润。鞍钢的这一计算公式为:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.14=CN元93亿?(CN元101B-CN元340亿)(根据截至2022年3月的往绩12个月计算).
所以呢,鞍钢股份的净资产收益率为14%。这本身就是正常的资本回报率,与该行业14%的平均回报率一致。
查看我们对鞍钢的最新分析
联交所:347 2022年7月28日资本回报率
在上图中,我们将鞍钢之前的净资产收益率与之前的业绩进行了比较,但可以说,未来更重要。如果您感兴趣,您可以在我们的免费分析师对该公司的预测报告。
鞍钢的ROCE走势告诉我们什么?
投资者会对鞍钢正在发生的事情感到满意。数据显示,在过去五年中,资本回报率大幅增长至14%。基本上,企业每投入一美元资本就能赚到更多的钱,除此之外,现在使用的资本也增加了25%。这可能表明,有很多机会在内部以更高的利率进行资本投资,这种组合在多头投资者中很常见。
总之..。
一家资本回报率不断增长、能够持续对自身进行再投资的公司是一个备受追捧的特征,这就是鞍钢所拥有的。鉴于该公司股价在过去五年中下跌了34%,如果估值和其他指标也具有吸引力,这可能是一笔不错的投资。因此,进一步研究这家公司,并确定这些趋势是否会继续下去似乎是合理的。
还有一件事,我们发现了1个警告标志面对鞍钢,你可能会感兴趣。
对于那些喜欢投资于稳固的公司,看看这个免费资产负债表稳健、股本回报率高的公司名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。