To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Monster Beverage (NASDAQ:MNST), they do have a high ROCE, but we weren't exactly elated from how returns are trending.
Return On Capital Employed (ROCE): What Is It?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Monster Beverage is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.23 = US$1.6b ÷ (US$8.2b - US$1.1b) (Based on the trailing twelve months to June 2022).
Thus, Monster Beverage has an ROCE of 23%. That's a fantastic return and not only that, it outpaces the average of 13% earned by companies in a similar industry.
See our latest analysis for Monster Beverage
NasdaqGS:MNST Return on Capital Employed October 4th 2022
In the above chart we have measured Monster Beverage'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.
How Are Returns Trending?
On the surface, the trend of ROCE at Monster Beverage doesn't inspire confidence. While it's comforting that the ROCE is high, five years ago it was 30%. 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 Bottom Line
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Monster Beverage. And the stock has followed suit returning a meaningful 61% to shareholders over the last five years. So while the underlying trends could already be accounted for by investors, we still think this stock is worth looking into further.
Monster Beverage does have some risks though, and we've spotted 1 warning sign for Monster Beverage that you might be interested in.
If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning 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?在其他方面,我们希望看到两件事;第一,不断增长的退货一是关于已用资本(ROCE),二是公司的金额已动用资本的比例。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。所以当我们看着怪物饮料纳斯达克(Sequoia Capital:MNST),它们确实有很高的净资产收益率,但我们并不完全对回报的趋势感到高兴。
资本回报率(ROCE):它是什么?
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)。Monster Beverage的计算公式为:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.23=16亿美元?(82亿-11亿美元)(根据截至2022年6月的往绩12个月计算).
因此,Monster Beverage的净资产收益率为23%。这是一笔丰厚的回报,不仅如此,它还超过了同类行业公司13%的平均回报率。
查看我们对Monster Beverage的最新分析
NasdaqGS:MNST资本回报率2022年10月4日
在上面的图表中,我们衡量了Monster Beverage之前的ROCE和它之前的表现,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。
回报趋势如何?
从表面上看,Monster Beverage的ROCE趋势并没有激发人们的信心。虽然令人欣慰的是,ROCE很高,但五年前是30%。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。
底线
尽管资本回报率在短期内有所下降,但我们发现Monster Beverage的收入和所用资本都有所增加,这是有希望的。在过去五年里,该公司股票也纷纷向股东返还了61%的回报。因此,虽然潜在的趋势可能已经被投资者所解释,但我们仍然认为这只股票值得进一步研究。
不过,怪物饮料确实有一些风险,我们已经发现怪兽饮料的1个警告标志你可能会感兴趣的。
如果你想搜索更多高回报的股票,看看这个免费资产负债表稳健,股本回报率也很高的股票名单。
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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。