What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, the ROCE of China Resources Gas Group (HKG:1193) looks decent, right now, so lets see what the trend of returns can tell us.
What Is 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. Analysts use this formula to calculate it for China Resources Gas Group:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.15 = HK$8.7b ÷ (HK$106b - HK$49b) (Based on the trailing twelve months to December 2021).
Thus, China Resources Gas Group has an ROCE of 15%. On its own, that's a standard return, however it's much better than the 9.8% generated by the Gas Utilities industry.
View our latest analysis for China Resources Gas Group
SEHK:1193 Return on Capital Employed August 7th 2022
In the above chart we have measured China Resources Gas Group'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 Can We Tell From China Resources Gas Group's ROCE Trend?
While the current returns on capital are decent, they haven't changed much. The company has consistently earned 15% for the last five years, and the capital employed within the business has risen 68% in that time. Since 15% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns.
On a separate but related note, it's important to know that China Resources Gas Group has a current liabilities to total assets ratio of 46%, 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.
Our Take On China Resources Gas Group's ROCE
The main thing to remember is that China Resources Gas Group has proven its ability to continually reinvest at respectable rates of return. However, over the last five years, the stock has only delivered a 33% return to shareholders who held over that period. So because of the trends we're seeing, we'd recommend looking further into this stock to see if it has the makings of a multi-bagger.
One more thing, we've spotted 1 warning sign facing China Resources Gas Group that you might find interesting.
While China Resources Gas Group may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
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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.
我们应该寻找什么样的趋势,我们想要找出能够长期成倍增值的股票?通常,我们会注意到一种增长的趋势退货关于已使用资本(ROCE)以及与之相伴随的是不断扩大的基地已动用资本的比例。简而言之,这些类型的企业是复利机器,这意味着它们不断地以越来越高的回报率对收益进行再投资。考虑到这一点,ROCE华润燃气集团(HKG:1193)目前看起来不错,所以让我们看看回报趋势能告诉我们什么。
什么是资本回报率(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。分析师用这个公式来计算华润燃气集团的股价:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.15=港币87亿?(港币1,060亿-490亿)(根据截至2021年12月的往绩12个月计算).
因此,华润燃气集团的净资产收益率为15%。就其本身而言,这是一个标准的回报率,但它比天然气公用事业行业9.8%的回报率要好得多。
查看我们对华润燃气集团的最新分析
联交所:1193已动用资本回报率2022年8月7日
在上面的图表中,我们比较了华润燃气集团之前的净资产收益率和之前的业绩,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。
从华润燃气集团的ROCE趋势中我们可以看出什么?
虽然目前的资本回报率还不错,但变化不大。过去五年,该公司的利润一直保持在15%,同期公司内部资本增长了68%。虽然15%是一个中等的净资产收益率,但很高兴看到一家企业能够继续以如此可观的回报率进行再投资。在很长一段时间内,这样的回报可能不会太令人兴奋,但如果保持一致,它们可以在股价回报方面获得回报。
在另一个相关的问题上,重要的是要知道,华润燃气集团的流动负债与总资产的比率为46%,我们认为这个比率相当高。这可能会带来一些风险,因为该公司基本上是在相当大程度上依赖其供应商或其他类型的短期债权人运营的。理想情况下,我们希望看到这一比例降低,因为这将意味着承担风险的债务更少。
我们对华润燃气集团ROCE的看法
需要记住的主要一点是,华润燃气集团已经证明了其持续以可观的回报率进行再投资的能力。然而,在过去五年中,该股仅为同期持有的股东带来了33%的回报。因此,鉴于我们看到的趋势,我们建议进一步研究这只股票,看看它是否具备多管齐下的条件。
还有一件事,我们发现了1个警告标志面对华润燃气集团,你可能会感兴趣。
虽然华润燃气集团目前的回报率可能不是最高的,但我们已经编制了一份股本回报率超过25%的公司名单。看看这个免费在这里列出。
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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。