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. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So on that note, Bosideng International Holdings (HKG:3998) looks quite promising in regards to its trends of return on capital.
Understanding Return On Capital Employed (ROCE)
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. Analysts use this formula to calculate it for Bosideng International Holdings:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.18 = CN¥2.6b ÷ (CN¥21b - CN¥6.6b) (Based on the trailing twelve months to March 2022).
Therefore, Bosideng International Holdings has an ROCE of 18%. On its own, that's a standard return, however it's much better than the 9.4% generated by the Luxury industry.
See our latest analysis for Bosideng International Holdings
SEHK:3998 Return on Capital Employed August 26th 2022
Above you can see how the current ROCE for Bosideng International Holdings compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
The Trend Of ROCE
Bosideng International Holdings is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 18%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 51%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.
The Bottom Line
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 Bosideng International Holdings has. And a remarkable 716% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.
If you'd like to know about the risks facing Bosideng International Holdings, we've discovered 1 warning sign that you should be aware of.
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
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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.
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。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。所以在这个音符上,波司登控股(HKG:3998)的资本回报率趋势看好。
了解资本回报率(ROCE)
对于那些不知道的人来说,ROCE是一家公司的年度税前利润(其回报)相对于业务资本的衡量标准。分析师用这个公式来计算波司登控股的股价:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.18=CN元26亿?(CN元210亿-CN元66亿)(根据截至2022年3月的往绩12个月计算).
所以呢,波司登控股拥有18%的净资产收益率。就其本身而言,这是一个标准回报率,但它比奢侈品行业9.4%的回报率要好得多。
查看我们对波司登控股的最新分析
联交所:3998 2022年8月26日资本回报率
上面你可以看到波司登控股目前的净资产收益率与之前的资本回报率相比如何,但你只能从过去知道这么多。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的发展趋势
波司登控股正显示出一些积极的趋势。数据显示,过去五年,资本回报率大幅上升至18%。该公司实际上每使用一美元资本就能赚到更多的钱,值得注意的是,资本额也增加了51%。越来越多的资本带来越来越多的回报,这在多头投资者中很常见,这就是为什么我们对此印象深刻。
底线
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,而这正是波司登控股所拥有的。过去五年令人惊叹的716%的总回报率告诉我们,投资者期待未来会有更多的好事情发生。话虽如此,我们仍然认为,前景看好的基本面意味着该公司值得进行进一步的尽职调查。
如果你想知道波司登控股面临的风险,我们发现1个警告标志这一点你应该知道。
如果你想寻找收入丰厚的可靠公司,看看这个免费拥有良好资产负债表和可观股本回报率的公司名单。
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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。