What are the early trends we should look for to identify a stock that could multiply in value over the long term? 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. And in light of that, the trends we're seeing at Singamas Container Holdings' (HKG:716) look very promising so lets take a look.
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. The formula for this calculation on Singamas Container Holdings is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.33 = US$246m ÷ (US$994m - US$243m) (Based on the trailing twelve months to December 2021).
Therefore, Singamas Container Holdings has an ROCE of 33%. In absolute terms that's a great return and it's even better than the Machinery industry average of 8.8%.
View our latest analysis for Singamas Container Holdings
SEHK:716 Return on Capital Employed July 6th 2022
In the above chart we have measured Singamas Container Holdings' 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.
The Trend Of ROCE
Singamas Container Holdings is showing promise given that its ROCE is trending up and to the right. The figures show that over the last five years, ROCE has grown 228% whilst employing roughly the same amount of capital. So our take on this is that the business has increased efficiencies to generate these higher returns, all the while not needing to make any additional investments. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects.
One more thing to note, Singamas Container Holdings has decreased current liabilities to 24% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. Therefore we can rest assured that the growth in ROCE is a result of the business' fundamental improvements, rather than a cooking class featuring this company's books.
The Key Takeaway
As discussed above, Singamas Container Holdings appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 72% return over the last five years. Therefore, we think it would be worth your time to check if these trends are going to continue.
Like most companies, Singamas Container Holdings does come with some risks, and we've found 2 warning signs that you should be aware of.
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.
我們應該尋找哪些早期趨勢來識別一隻可能在長期內成倍增值的股票?首先,我們想要確定一個不斷增長的退貨在已使用資本(ROCE)上,然後在此基礎上,不斷增加基地已動用資本的比例。簡而言之,這些類型的企業是複利機器,這意味着它們不斷地以越來越高的回報率對收益進行再投資。有鑑於此,我們看到的趨勢新加坡集裝箱控股公司(HKG:716)看起來很有希望,所以讓我們來看看。
什麼是資本回報率(ROCE)?
對於那些不確定ROCE是什麼的人,它衡量的是一家公司可以從其業務中使用的資本產生的税前利潤。Singamas Container Holdings的計算公式為:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.33美元=2.46億美元(9.94億美元-2.43億美元)(根據截至2021年12月的往績12個月計算).
所以呢,Singamas Container Holdings的淨資產收益率為33%。按絕對值計算,這是一個很高的回報率,甚至好於機械行業8.8%的平均水平。
查看我們對Singamas Container Holdings的最新分析
聯交所:716 2022年7月6日資本回報率
在上面的圖表中,我們比較了Singamas Container Holdings之前的淨資產收益率和之前的表現,但可以説,未來更重要。如果您感興趣,您可以在我們的免費分析師對該公司的預測報告。
ROCE的發展趨勢
Singamas Container Holdings正顯示出希望,因為其ROCE正呈上升和右傾趨勢。數據顯示,在過去五年中,ROCE增長了228%,同時僱傭了大致相同數量的資本。因此,我們對此的看法是,企業提高了效率,從而產生了更高的回報,同時不需要進行任何額外投資。從這個意義上講,該公司的表現很好,值得研究一下管理團隊對長期增長前景的規劃。
還有一點需要注意的是,Singamas Container Holdings在此期間將流動負債減少到總資產的24%,這有效地減少了來自供應商或短期債權人的資金。因此,我們可以放心,ROCE的增長是業務根本改善的結果,而不是以該公司的書籍為特色的烹飪課程。
關鍵的外賣
如上所述,Singamas Container Holdings似乎越來越擅長產生回報,因為已動用資本持平,但收益(息税前)上升。投資者似乎預計未來會出現更多這樣的情況,因為過去五年,該股為股東帶來了72%的回報。因此,我們認為值得您花時間檢查這些趨勢是否會繼續下去。
像大多數公司一樣,Singamas Container Holdings確實存在一些風險,我們發現2個警告標誌這一點你應該知道。
如果你想搜索更多高回報的股票,看看這個免費資產負債表穩健,股本回報率也很高的股票名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。