There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing 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. Although, when we looked at Café de Coral Holdings (HKG:341), it didn't seem to tick all of these boxes.
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. Analysts use this formula to calculate it for Café de Coral Holdings:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.018 = HK$91m ÷ (HK$6.9b - HK$1.7b) (Based on the trailing twelve months to March 2022).
Therefore, Café de Coral Holdings has an ROCE of 1.8%. Ultimately, that's a low return and it under-performs the Hospitality industry average of 2.9%.
Check out our latest analysis for Café de Coral Holdings
SEHK:341 Return on Capital Employed September 26th 2022
In the above chart we have measured Café de Coral Holdings' 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 Café de Coral Holdings.
The Trend Of ROCE
On the surface, the trend of ROCE at Café de Coral Holdings doesn't inspire confidence. Over the last five years, returns on capital have decreased to 1.8% from 17% five years ago. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
What We Can Learn From Café de Coral Holdings' ROCE
While returns have fallen for Café de Coral Holdings in recent times, we're encouraged to see that sales are growing and that the business is reinvesting in its operations. And there could be an opportunity here if other metrics look good too, because the stock has declined 50% in the last five years. So we think it'd be worthwhile to look further into this stock given the trends look encouraging.
One more thing to note, we've identified 2 warning signs with Café de Coral Holdings and understanding them should be part of your investment process.
While Café de Coral Holdings 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.
如果我们想要识别下一个多袋子,有几个关键趋势需要寻找。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。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。虽然,当我们看到́de Coral控股咖啡馆(HKG:341),它似乎没有勾选所有这些框。
资本回报率(ROCE):它是什么?
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。分析师使用以下公式来计算́de Coral控股咖啡馆的股价:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.018=9100万港元(69亿港元至17亿港元)(根据截至2022年3月的往绩12个月计算).
所以呢,Caféde Coral Holdings的净资产收益率为1.8%。归根结底,这是一个很低的回报率,而且低于酒店业2.9%的平均水平。
查看我们对́de Coral控股咖啡馆的最新分析
联交所:341已动用资本回报率2022年9月26日
在上面的图表中,我们衡量了́de Coral Holdings之前的净资产收益率与之前的表现,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费́de Coral控股咖啡馆的报道。
ROCE的发展趋势
从表面上看,́de Coral控股咖啡馆的ROCE趋势并没有激发人们的信心。过去五年,资本回报率从五年前的17%降至1.8%。尽管,考虑到收入和业务中使用的资产数量都有所增加,这可能表明该公司正在投资于增长,而额外的资本导致了ROCE的短期下降。如果增加的资本产生额外的回报,从长远来看,企业和股东都将受益。
我们可以从́de Coral控股公司的ROCE中学到什么
虽然最近́de Coral控股咖啡馆的回报率有所下降,但我们看到销售额在增长,该业务正在对其业务进行再投资,这让我们感到鼓舞。如果其他指标看起来也不错,那么这里可能会有机会,因为该股在过去五年里下跌了50%。因此,我们认为,鉴于趋势看起来令人鼓舞,进一步研究这只股票是值得的。
还有一件事需要注意,我们已经确定了2个警告标志与Caféde Coral Holdings合作,了解他们应该是你投资过程的一部分。
虽然Caféde Coral Holdings目前的回报率可能不是最高的,但我们已经编制了一份目前股本回报率超过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。