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. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after briefly looking over the numbers, we don't think Miramar Hotel and Investment Company (HKG:71) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
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. To calculate this metric for Miramar Hotel and Investment Company, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.027 = HK$552m ÷ (HK$21b - HK$727m) (Based on the trailing twelve months to June 2022).
So, Miramar Hotel and Investment Company has an ROCE of 2.7%. Even though it's in line with the industry average of 2.9%, it's still a low return by itself.
See our latest analysis for Miramar Hotel and Investment Company
SEHK:71 Return on Capital Employed October 16th 2022
Historical performance is a great place to start when researching a stock so above you can see the gauge for Miramar Hotel and Investment Company's ROCE against it's prior returns. If you want to delve into the historical earnings, revenue and cash flow of Miramar Hotel and Investment Company, check out these free graphs here.
What Does the ROCE Trend For Miramar Hotel and Investment Company Tell Us?
In terms of Miramar Hotel and Investment Company's historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 4.9% over the last five years. 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. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
What We Can Learn From Miramar Hotel and Investment Company's ROCE
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Miramar Hotel and Investment Company. And there could be an opportunity here if other metrics look good too, because the stock has declined 19% in the last five years. So we think it'd be worthwhile to look further into this stock given the trends look encouraging.
If you'd like to know about the risks facing Miramar Hotel and Investment Company, we've discovered 1 warning sign that you should be aware of.
While Miramar Hotel and Investment Company 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。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。然而,在简单地看了一下数字之后,我们认为美丽华酒店与投资公司(HKG:71)未来有可能成为一个多袋子的人,但让我们看看为什么会这样。
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。要计算Miramar Hotel and Investment Company的此指标,公式如下:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.027=5.52亿港元(210亿-7.27亿港元)(根据截至2022年6月的往绩12个月计算).
所以,美丽华酒店和投资公司的净资产收益率为2.7%。尽管这与2.9%的行业平均水平一致,但这本身仍然是一个低回报。
查看我们对美丽华酒店和投资公司的最新分析
联交所:71 2022年10月16日的资本回报率
当研究一只股票时,历史表现是一个很好的起点,因为在历史表现之上,你可以看到美丽华酒店和投资公司的ROCE相对于它之前的回报的衡量标准。如果你想深入研究美丽华酒店和投资公司的历史收益、收入和现金流,请查看以下内容免费图表在这里。
美丽华酒店和投资公司的ROCE趋势告诉我们什么?
就美丽华酒店和投资公司历史上的ROCE运动而言,这一趋势并不美妙。更具体地说,ROCE在过去五年中从4.9%下降。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。
我们可以从美丽华酒店投资公司的ROCE中学到什么
尽管资本回报率在短期内有所下降,但我们发现,美丽华酒店投资公司的收入和所用资本都有所增加,这是有希望的。如果其他指标也看起来不错,这可能是一个机会,因为该股在过去五年中下跌了19%。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。
如果你想知道美丽华酒店和投资公司面临的风险,我们发现1个警告标志这一点你应该知道。
虽然美丽华酒店和投资公司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。