If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing 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. Although, when we looked at China Power International Development (HKG:2380), it didn't seem to tick all of these boxes.
Understanding Return On Capital Employed (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for China Power International Development:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.034 = CN¥4.4b ÷ (CN¥175b - CN¥46b) (Based on the trailing twelve months to December 2021).
Thus, China Power International Development has an ROCE of 3.4%. Ultimately, that's a low return and it under-performs the Renewable Energy industry average of 6.7%.
View our latest analysis for China Power International Development
SEHK:2380 Return on Capital Employed August 7th 2022
Above you can see how the current ROCE for China Power International Development compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for China Power International Development.
How Are Returns Trending?
When we looked at the ROCE trend at China Power International Development, we didn't gain much confidence. Around five years ago the returns on capital were 7.4%, but since then they've fallen to 3.4%. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. If these investments prove successful, this can bode very well for long term stock performance.
The Key Takeaway
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for China Power International Development. And long term investors must be optimistic going forward because the stock has returned a huge 119% to shareholders in the last five years. So while investors seem to be recognizing these promising trends, we would look further into this stock to make sure the other metrics justify the positive view.
One final note, you should learn about the 2 warning signs we've spotted with China Power International Development (including 1 which is significant) .
While China Power International Development 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.
如果你不确定在寻找下一个多袋子时从哪里开始,有几个关键的趋势你应该密切关注。首先,我们想要确定一个不断增长的退货在已使用资本(ROCE)上,然后在此基础上,不断增加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。虽然,当我们看到中国电力国际发展有限公司(HKG:2380),它似乎没有勾选所有这些框。
了解资本回报率(ROCE)
如果您不确定,只需澄清一下,ROCE是一种评估公司投资于其业务的资本获得多少税前收入(按百分比计算)的指标。分析师对中国电力国际发展的计算公式如下:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.034=CN元44亿?(CN元175B-CN元46B)(根据截至2021年12月的往绩12个月计算).
因此,中国电力国际发展的净资产收益率为3.4%。归根结底,这是一个低回报,表现低于可再生能源行业6.7%的平均水平。
查看我们对中国电力国际发展的最新分析
联交所:2380已动用资本回报率2022年8月7日
上图中,你可以看到中国电力国际发展公司目前的净资产收益率与之前的资本回报率相比如何,但你只能从过去了解到这么多。如果您想查看分析师对未来的预测,您应该查看我们的免费中国电力国际发展公司报告。
回报趋势如何?
当我们观察中国电力国际发展的ROCE趋势时,我们并没有获得太多信心。大约五年前,资本回报率为7.4%,但自那以来已降至3.4%。然而,鉴于已动用资本和收入都有所增加,该业务目前似乎正在追求增长,这是短期回报的结果。如果这些投资被证明是成功的,这可能是长期股票表现的好兆头。
关键的外卖
尽管资本回报率在短期内下降,但我们发现,中国电力国际发展的收入和所用资本都有所增加,这是很有希望的。长期投资者必须对未来持乐观态度,因为过去五年,该股向股东回报高达119%。因此,尽管投资者似乎正在认识到这些充满希望的趋势,但我们会进一步研究这只股票,以确保其他指标证明这种积极观点是合理的。
最后一个注意事项,您应该了解2个警告标志我们已经与中国电力国际发展有限公司(China Power International Development)进行了接触(其中1家意义重大)。
虽然中国电力国际发展并没有获得最高的回报,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。