What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Having said that, from a first glance at HKT Trust and HKT (HKG:6823) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
What Is Return On Capital Employed (ROCE)?
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 HKT Trust and HKT is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.076 = HK$7.1b ÷ (HK$110b - HK$16b) (Based on the trailing twelve months to December 2021).
Thus, HKT Trust and HKT has an ROCE of 7.6%. On its own that's a low return, but compared to the average of 6.1% generated by the Telecom industry, it's much better.
Check out our latest analysis for HKT Trust and HKT
SEHK:6823 Return on Capital Employed July 31st 2022
In the above chart we have measured HKT Trust and HKT'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.
What The Trend Of ROCE Can Tell Us
There hasn't been much to report for HKT Trust and HKT's returns and its level of capital employed because both metrics have been steady for the past five years. This tells us the company isn't reinvesting in itself, so it's plausible that it's 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 being the case, it makes sense that HKT Trust and HKT has been paying out 117% of its earnings to its 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.
Our Take On HKT Trust and HKT's ROCE
We can conclude that in regards to HKT Trust and HKT's returns on capital employed and the trends, there isn't much change to report on. Since the stock has gained an impressive 46% over the last five years, investors must think there's better things to come. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
If you want to know some of the risks facing HKT Trust and HKT we've found 2 warning signs (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
While HKT Trust and HKT isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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?在一個完美的世界裏,我們希望看到一家公司向其業務投入更多資本,理想情況下,從這些資本中賺取的回報也在增加。基本上,這意味着一家公司有盈利的舉措,可以繼續進行再投資,這是複合機器的一個特點。話雖如此,從第一眼看香港電訊-SS(HKG:6823)我們不會因為回報率的趨勢而從椅子上跳起來,但讓我們更深入地看看。
什麼是資本回報率(ROCE)?
如果你以前沒有使用過ROCE,它衡量的是一家公司從業務資本中獲得的“回報”(税前利潤)。香港電訊-SS的這一計算公式是:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.076=71億港元?(1100億港元-160億港元)(根據截至2021年12月的往績12個月計算).
因此,香港電訊-SS的淨資產收益率為7.6%。就其本身而言,這是一個很低的回報率,但與電信行業6.1%的平均回報率相比,這要好得多。
看看我們對香港電訊-SS的最新分析
聯交所:6823 2022年7月31日已動用資本回報率
在上面的圖表中,我們比較了香港電訊-SS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的走勢告訴我們什麼
關於香港電訊-SS的回報率和資本使用水平,沒有太多可供報告的數據,因為這兩個指標在過去五年裏都是穩定的。這告訴我們,該公司沒有對自身進行再投資,因此它似乎已經過了增長階段。因此,如果香港電訊-SS在幾年後不會成為一個兼職的人,也不要感到驚訝。既然如此,香港電訊-SS將其盈利的117%分給股東也就合情合理了。這些成熟的企業通常有可靠的收益,沒有太多地方可以再投資,所以下一個最好的選擇是將收益放入股東的口袋。
我們對香港電訊-SS的ROCE的看法
可以得出的結論是,關於香港電訊-SS的資本回報率和趨勢,沒有太大的變化可以報告。由於該股在過去五年中上漲了46%,令人印象深刻,投資者肯定認為未來會有更好的事情發生。但如果這些潛在趨勢的軌跡繼續下去,我們認為從現在開始出現多管齊下的可能性並不高。
如果你想知道香港電訊-SS面臨的一些風險,我們已經找到了2個警告標誌(1讓我們有點不舒服!)在這裏投資之前你應該意識到這一點。
雖然香港電訊-SS沒有賺到最高的回報,但看看這個免費資產負債表穩健、股本回報率高的公司名單。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
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。