If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing 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. Although, when we looked at China Power International Development (HKG:2380), it didn't seem to tick all of these boxes.
Understanding Return On Capital Employed (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for China Power International Development:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.034 = CN¥4.4b ÷ (CN¥175b - CN¥46b) (Based on the trailing twelve months to December 2021).
Thus, China Power International Development has an ROCE of 3.4%. Ultimately, that's a low return and it under-performs the Renewable Energy industry average of 6.7%.
View our latest analysis for China Power International Development
SEHK:2380 Return on Capital Employed August 7th 2022
Above you can see how the current ROCE for China Power International Development compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for China Power International Development.
How Are Returns Trending?
When we looked at the ROCE trend at China Power International Development, we didn't gain much confidence. Around five years ago the returns on capital were 7.4%, but since then they've fallen to 3.4%. 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 Key Takeaway
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for China Power International Development. And long term investors must be optimistic going forward because the stock has returned a huge 119% to shareholders in the last five years. So while investors seem to be recognizing these promising trends, we would look further into this stock to make sure the other metrics justify the positive view.
One final note, you should learn about the 2 warning signs we've spotted with China Power International Development (including 1 which is significant) .
While China Power International Development isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
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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.
如果你不確定在尋找下一個多袋子時從哪裏開始,有幾個關鍵的趨勢你應該密切關注。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。如果你看到這個,通常意味着它是一家擁有出色商業模式和大量有利可圖的再投資機會的公司。雖然,當我們看到中國電力國際發展有限公司(HKG:2380),它似乎沒有勾選所有這些框。
瞭解資本回報率(ROCE)
如果您不確定,只需澄清一下,ROCE是一種評估公司投資於其業務的資本獲得多少税前收入(按百分比計算)的指標。分析師對中國電力國際發展的計算公式如下:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.034=CN元44億?(CN元175B-CN元46B)(根據截至2021年12月的往績12個月計算).
因此,中國電力國際發展的淨資產收益率為3.4%。歸根結底,這是一個低迴報,表現低於可再生能源行業6.7%的平均水平。
查看我們對中國電力國際發展的最新分析
聯交所:2380已動用資本回報率2022年8月7日
上圖中,你可以看到中國電力國際發展公司目前的淨資產收益率與之前的資本回報率相比如何,但你只能從過去了解到這麼多。如果您想查看分析師對未來的預測,您應該查看我們的免費中國電力國際發展公司報告。
回報趨勢如何?
當我們觀察中國電力國際發展的ROCE趨勢時,我們並沒有獲得太多信心。大約五年前,資本回報率為7.4%,但自那以來已降至3.4%。然而,鑑於已動用資本和收入都有所增加,該業務目前似乎正在追求增長,這是短期回報的結果。如果這些投資被證明是成功的,這可能是長期股票表現的好兆頭。
關鍵的外賣
儘管資本回報率在短期內下降,但我們發現,中國電力國際發展的收入和所用資本都有所增加,這是很有希望的。長期投資者必須對未來持樂觀態度,因為過去五年,該股向股東回報高達119%。因此,儘管投資者似乎正在認識到這些充滿希望的趨勢,但我們會進一步研究這隻股票,以確保其他指標證明這種積極觀點是合理的。
最後一個注意事項,您應該瞭解2個警告標誌我們已經與中國電力國際發展有限公司(China Power International Development)進行了接觸(其中1家意義重大)。
雖然中國電力國際發展並沒有獲得最高的回報,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。
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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。