To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So on that note, Kratos Defense & Security Solutions (NASDAQ:KTOS) looks quite promising in regards to its trends of return on capital.
Understanding 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. To calculate this metric for Kratos Defense & Security Solutions, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.018 = US$25m ÷ (US$1.6b - US$228m) (Based on the trailing twelve months to June 2022).
Therefore, Kratos Defense & Security Solutions has an ROCE of 1.8%. In absolute terms, that's a low return and it also under-performs the Aerospace & Defense industry average of 8.8%.
See our latest analysis for Kratos Defense & Security Solutions
NasdaqGS:KTOS Return on Capital Employed September 8th 2022
In the above chart we have measured Kratos Defense & Security Solutions' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free report for Kratos Defense & Security Solutions.
So How Is Kratos Defense & Security Solutions' ROCE Trending?
Kratos Defense & Security Solutions has recently broken into profitability so their prior investments seem to be paying off. The company was generating losses five years ago, but now it's earning 1.8% which is a sight for sore eyes. Not only that, but the company is utilizing 77% more capital than before, but that's to be expected from a company trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance.
What We Can Learn From Kratos Defense & Security Solutions' ROCE
In summary, it's great to see that Kratos Defense & Security Solutions has managed to break into profitability and is continuing to reinvest in its business. Investors may not be impressed by the favorable underlying trends yet because over the last five years the stock has only returned 0.8% to shareholders. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up.
While Kratos Defense & Security Solutions looks impressive, no company is worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether KTOS is currently trading for a fair price.
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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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.
要找到一只多袋股票,我们应该在一家企业中寻找什么潜在趋势?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。归根结底,这表明它是一家正在以越来越高的回报率对利润进行再投资的企业。所以在这个音符上,克瑞托斯防务与安全解决方案纳斯达克(Sequoia Capital:KTOS)的资本回报率趋势看起来相当有希望。
了解资本回报率(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)。要计算Kratos防务和安全解决方案的此指标,请使用以下公式:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.018美元=2500万美元(16亿美元-2.28亿美元)(根据截至2022年6月的往绩12个月计算).
所以呢,奎托斯防务与安全解决方案公司的净资产收益率为1.8%。按绝对值计算,这是一个较低的回报率,也低于航空航天和国防行业8.8%的平均水平。
查看我们对Kratos防御和安全解决方案的最新分析
NasdaqGS:KTO资本回报率2022年9月8日
在上面的图表中,我们比较了Kratos防务与安全解决方案公司之前的ROCE与其之前的表现,但可以说,未来更重要。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克瑞托斯国防与安全解决方案公司的报告。
那么,奎托斯防务与安全解决方案公司的ROCE趋势如何?
克瑞托斯防务与安全解决方案公司最近实现了盈利,因此他们之前的投资似乎得到了回报。该公司五年前还在亏损,但现在盈利1.8%,这是一个令人伤感的景象。不仅如此,该公司利用的资本比以前多了77%,但对于一家试图进入盈利领域的公司来说,这是意料之中的。我们喜欢这一趋势,因为它告诉我们,该公司有盈利的再投资机会,如果它继续前进,可能会导致多袋业绩。
我们可以从奎托斯防务和安全解决方案公司的ROCE中学到什么
总而言之,很高兴看到克瑞托斯防务和安全解决方案公司成功实现盈利,并继续对其业务进行再投资。投资者可能还不会对有利的潜在趋势印象深刻,因为在过去五年中,该股向股东的回报率仅为0.8%。因此,如果估值和其他指标叠加在一起,探索更多关于这只股票的信息可能会发现一个很好的机会。
虽然Kratos防务和安全解决方案看起来令人印象深刻,但没有一家公司值无限的价格。我们的内部价值信息图免费研究报告有助于直观地了解KTO目前的交易价格是否合理。
对于那些喜欢投资于稳固的公司,看看这个免费资产负债表稳健、股本回报率高的公司名单。
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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。