If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. In light of that, when we looked at Kidztech Holdings (HKG:6918) and its ROCE trend, we weren't exactly thrilled.
Return On Capital Employed (ROCE): What Is It?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Kidztech Holdings, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.076 = CN¥35m ÷ (CN¥781m - CN¥329m) (Based on the trailing twelve months to December 2021).
Therefore, Kidztech Holdings has an ROCE of 7.6%. In absolute terms, that's a low return, but it's much better than the Leisure industry average of 3.6%.
Check out our latest analysis for Kidztech Holdings
SEHK:6918 Return on Capital Employed August 5th 2022
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings, revenue and cash flow of Kidztech Holdings, check out these free graphs here.
The Trend Of ROCE
In terms of Kidztech Holdings' historical ROCE movements, the trend isn't fantastic. Around five years ago the returns on capital were 26%, but since then they've fallen to 7.6%. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It may take some time before the company starts to see any change in earnings from these investments.
On a separate but related note, it's important to know that Kidztech Holdings has a current liabilities to total assets ratio of 42%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.
The Bottom Line On Kidztech Holdings' ROCE
Bringing it all together, while we're somewhat encouraged by Kidztech Holdings' reinvestment in its own business, we're aware that returns are shrinking. Although the market must be expecting these trends to improve because the stock has gained 79% over the last year. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
One more thing, we've spotted 2 warning signs facing Kidztech Holdings 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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如果你正在寻找一款多功能装袋机,有几件事需要注意。一种常见的方法是尝试找一家公司 回报 论资本使用率(ROCE)在增加的同时增长 金额 所用资本的百分比。归根结底,这表明这是一家以越来越高的回报率对利润进行再投资的企业。有鉴于此,当我们看的时候 Kidztech 控股 (HKG: 6918)及其投资回报率趋势,我们并不感到非常兴奋。
资本使用回报率(ROCE):这是什么?
对于那些不知道的人,投资回报率是衡量公司相对于企业所用资本的年度税前利润(回报)的衡量标准。要计算 Kidztech Holdings 的这个指标,公式如下:
使用资本回报率 = 利息和税前收益 (EBIT) ÷(总资产-流动负债)
0.076 = 3500万元人民币 ε(7.81亿元人民币-3.29亿元人民币) (基于截至2021年12月的过去十二个月)。
因此, Kidztech Holdings的投资回报率为7.6%。 按绝对值计算,这是一个很低的回报,但比休闲行业平均水平的3.6%要好得多。
查看我们对 Kidztech Holdings 的最新分析
香港联交所:6918 2022年8月5日动用资本报表
虽然过去并不能代表未来,但了解一家公司的历史表现可能会有所帮助,这就是我们在上面有这张图表的原因。如果你想深入了解 Kidztech Holdings 的历史收益、收入和现金流,请查看这些 免费的 这里的图表。
ROCE 的趋势
就Kidztech Holdings的历史投资回报率走势而言,这种趋势并不奇妙。大约五年前,资本回报率为26%,但此后已降至7.6%。同时,该业务正在使用更多的资金,但在过去的12个月中,这在销售方面并没有取得太大的进展,因此这可能反映了长期投资。公司可能需要一段时间才能开始看到这些投资的收益发生任何变化。
另一方面,重要的是要知道Kidztech Holdings的流动负债与总资产的比率为42%,我们认为这个比率相当高。这可能会带来一些风险,因为该公司的运营基本上在很大程度上依赖供应商或其他类型的短期债权人。理想情况下,我们希望看到这种减少,因为这意味着承担风险的债务减少。
Kidztech Holdings 投资回报率的底线
综上所述,尽管Kidztech Holdings对自有业务的再投资使我们感到有些鼓舞,但我们知道回报正在萎缩。尽管市场一定预计这些趋势会有所改善,因为该股在过去一年中上涨了79%。但是,如果这些潜在趋势的轨迹继续下去,我们认为它从现在起成为多袋装箱的可能性并不高。
还有一件事,我们发现了 2 个警告标志 面对你可能会觉得有趣的 Kidztech Holdings。
对于那些喜欢投资的人 实力雄厚的公司, 看看这个 免费的 资产负债表稳健、股本回报率高的公司名单。
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Simply Wall St 的这篇文章本质上是笼统的。 我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。简而言之,华尔街在上述任何股票中都没有头寸。