If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. In light of that, when we looked at HKT Trust and HKT (HKG:6823) and its ROCE trend, we weren't exactly thrilled.
What Is Return On Capital Employed (ROCE)?
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for HKT Trust and HKT:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.081 = HK$7.1b ÷ (HK$110b - HK$21b) (Based on the trailing twelve months to June 2022).
Therefore, HKT Trust and HKT has an ROCE of 8.1%. On its own that's a low return, but compared to the average of 6.6% generated by the Telecom industry, it's much better.
View our latest analysis for HKT Trust and HKT
SEHK:6823 Return on Capital Employed November 2nd 2022
Above you can see how the current ROCE for HKT Trust and HKT compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering HKT Trust and HKT here for free.
How Are Returns Trending?
Things have been pretty stable at HKT Trust and HKT, with its capital employed and returns on that capital staying somewhat the same for the last five years. Businesses with these traits tend to be mature and steady operations because they're past the growth phase. So don't be surprised if HKT Trust and HKT doesn't end up being a multi-bagger in a few years time. That probably explains why HKT Trust and HKT has been paying out 116% of its earnings as dividends to shareholders. These mature businesses typically have reliable earnings and not many places to reinvest them, so the next best option is to put the earnings into shareholders pockets.
The Bottom Line
In a nutshell, HKT Trust and HKT has been trudging along with the same returns from the same amount of capital over the last five years. Unsurprisingly, the stock has only gained 26% over the last five years, which potentially indicates that investors are accounting for this going forward. So if you're looking for a multi-bagger, the underlying trends indicate you may have better chances elsewhere.
One final note, you should learn about the 2 warning signs we've spotted with HKT Trust and HKT (including 1 which shouldn't be ignored) .
While HKT Trust and HKT 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.
如果你正在寻找一个多袋子,有几个东西需要注意。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。如果你看到这个,通常意味着它是一家拥有出色商业模式和大量有利可图的再投资机会的公司。有鉴于此,当我们看到香港电讯-SS(HKG:6823)和它的ROCE趋势,我们并不是很兴奋。
什么是资本回报率(ROCE)?
对于那些不确定ROCE是什么的人,它衡量的是一家公司可以从其业务中使用的资本产生的税前利润。分析人士用这个公式为香港电讯-SS计算:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.081=71亿港元?(1100亿港元-210亿港元)(根据截至2022年6月的往绩12个月计算).
所以呢,香港电讯-SS的净资产收益率为8.1%。就其本身而言,这是一个很低的回报率,但与电信行业6.6%的平均回报率相比,这要好得多。
查看我们对香港电讯-SS的最新分析
联交所:6823已动用资本回报率2022年11月2日
上面你可以看到香港电讯-SS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。如果你愿意,你可以查看这里报道香港电讯-SS的分析师对免费的。
回报趋势如何?
香港电讯-SS的情况一直相当稳定,过去五年它的资本投入和资本回报率都保持不变。具有这些特征的企业往往是成熟和稳定的运营,因为它们已经过了成长期。因此,如果香港电讯-SS在几年后不会成为一个兼职的人,也不要感到惊讶。这可能解释了为什么香港电讯-SS一直将盈利的116%作为股息支付给股东。这些成熟的企业通常有可靠的收益,没有太多地方可以再投资,所以下一个最好的选择是将收益放入股东的口袋。
底线
简而言之,在过去的五年里,香港电讯-SS一直在用同样数量的资本艰难前行,获得同样的回报。不出所料,该股在过去五年中仅上涨了26%,这可能表明未来投资者正在考虑这一点。因此,如果你正在寻找一个多袋子,潜在的趋势表明,你可能在其他地方有更好的机会。
最后一个注意事项,您应该了解2个警告标志我们已经看到了香港电讯-SS(包括1名不容忽视的球员)。
虽然香港电讯-SS目前的回报率可能不是最高的,但我们已经编制了一份股本回报率超过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。