What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, from a first glance at HKT Trust and HKT (HKG:6823) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
What Is Return On Capital Employed (ROCE)?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on HKT Trust and HKT is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.076 = HK$7.1b ÷ (HK$110b - HK$16b) (Based on the trailing twelve months to December 2021).
Thus, HKT Trust and HKT has an ROCE of 7.6%. On its own that's a low return, but compared to the average of 6.1% generated by the Telecom industry, it's much better.
Check out our latest analysis for HKT Trust and HKT
SEHK:6823 Return on Capital Employed July 31st 2022
In the above chart we have measured HKT Trust and HKT'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 The Trend Of ROCE Can Tell Us
There hasn't been much to report for HKT Trust and HKT's returns and its level of capital employed because both metrics have been steady for the past five years. This tells us the company isn't reinvesting in itself, so it's plausible that it's past the growth phase. So don't be surprised if HKT Trust and HKT doesn't end up being a multi-bagger in a few years time. That being the case, it makes sense that HKT Trust and HKT has been paying out 117% of its earnings to its shareholders. These mature businesses typically have reliable earnings and not many places to reinvest them, so the next best option is to put the earnings into shareholders pockets.
Our Take On HKT Trust and HKT's ROCE
We can conclude that in regards to HKT Trust and HKT's returns on capital employed and the trends, there isn't much change to report on. Since the stock has gained an impressive 46% over the last five years, investors must think there's better things to come. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
If you want to know some of the risks facing HKT Trust and HKT we've found 2 warning signs (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
While HKT Trust and HKT isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
Have 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.
我们应该寻找哪些早期趋势来识别一只可能在长期内成倍增值的股票?在一个完美的世界里,我们希望看到一家公司向其业务投入更多资本,理想情况下,从这些资本中赚取的回报也在增加。基本上,这意味着一家公司有盈利的举措,可以继续进行再投资,这是复合机器的一个特点。话虽如此,从第一眼看香港电讯-SS(HKG:6823)我们不会因为回报率的趋势而从椅子上跳起来,但让我们更深入地看看。
什么是资本回报率(ROCE)?
如果你以前没有使用过ROCE,它衡量的是一家公司从业务资本中获得的“回报”(税前利润)。香港电讯-SS的这一计算公式是:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.076=71亿港元?(1100亿港元-160亿港元)(根据截至2021年12月的往绩12个月计算).
因此,香港电讯-SS的净资产收益率为7.6%。就其本身而言,这是一个很低的回报率,但与电信行业6.1%的平均回报率相比,这要好得多。
看看我们对香港电讯-SS的最新分析
联交所:6823 2022年7月31日已动用资本回报率
在上面的图表中,我们比较了香港电讯-SS之前的净资产收益率和之前的表现,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。
ROCE的走势告诉我们什么
关于香港电讯-SS的回报率和资本使用水平,没有太多可供报告的数据,因为这两个指标在过去五年里都是稳定的。这告诉我们,该公司没有对自身进行再投资,因此它似乎已经过了增长阶段。因此,如果香港电讯-SS在几年后不会成为一个兼职的人,也不要感到惊讶。既然如此,香港电讯-SS将其盈利的117%分给股东也就合情合理了。这些成熟的企业通常有可靠的收益,没有太多地方可以再投资,所以下一个最好的选择是将收益放入股东的口袋。
我们对香港电讯-SS的ROCE的看法
可以得出的结论是,关于香港电讯-SS的资本回报率和趋势,没有太大的变化可以报告。由于该股在过去五年中上涨了46%,令人印象深刻,投资者肯定认为未来会有更好的事情发生。但如果这些潜在趋势的轨迹继续下去,我们认为从现在开始出现多管齐下的可能性并不高。
如果你想知道香港电讯-SS面临的一些风险,我们已经找到了2个警告标志(1让我们有点不舒服!)在这里投资之前你应该意识到这一点。
虽然香港电讯-SS没有赚到最高的回报,但看看这个免费资产负债表稳健、股本回报率高的公司名单。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
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。