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. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. 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 Dalian Insulator Group (SZSE:002606) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
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. The formula for this calculation on Dalian Insulator Group is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.088 = CN¥137m ÷ (CN¥1.8b - CN¥299m) (Based on the trailing twelve months to June 2022).
Thus, Dalian Insulator Group has an ROCE of 8.8%. In absolute terms, that's a low return but it's around the Electrical industry average of 8.3%.
View our latest analysis for Dalian Insulator Group
SZSE:002606 Return on Capital Employed August 25th 2022
Historical performance is a great place to start when researching a stock so above you can see the gauge for Dalian Insulator Group's ROCE against it's prior returns. If you want to delve into the historical earnings, revenue and cash flow of Dalian Insulator Group, check out these free graphs here.
What The Trend Of ROCE Can Tell Us
There are better returns on capital out there than what we're seeing at Dalian Insulator Group. The company has employed 59% more capital in the last five years, and the returns on that capital have remained stable at 8.8%. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital.
One more thing to note, even though ROCE has remained relatively flat over the last five years, the reduction in current liabilities to 16% of total assets, is good to see from a business owner's perspective. Effectively suppliers now fund less of the business, which can lower some elements of risk.
What We Can Learn From Dalian Insulator Group's ROCE
In conclusion, Dalian Insulator Group has been investing more capital into the business, but returns on that capital haven't increased. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 104% gain to shareholders who have held over the last three years. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.
Dalian Insulator Group does have some risks though, and we've spotted 1 warning sign for Dalian Insulator Group that you might be interested in.
While Dalian Insulator Group 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。在其他方面,我們希望看到兩件事;第一,不斷增長的退貨一是關於已用資本(ROCE),二是公司的金額已動用資本的比例。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,從第一眼看大連絕緣子集團(SZSE:002606)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。
資本回報率(ROCE):它是什麼?
對於那些不知道的人來説,ROCE是一家公司的年度税前利潤(其回報)相對於業務資本的衡量標準。大連絕緣子集團的這一計算公式為:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.088=人民幣1.37億元?(人民幣18億元-人民幣2.99億元)(根據截至2022年6月的往績12個月計算).
因此,大連絕緣子集團的淨資產收益率為8.8%。按絕對值計算,這是一個較低的回報率,但約為電氣行業8.3%的平均水平。
查看我們對大連絕緣子集團的最新分析
深圳證交所:2022年8月25日資本回報率002606
在研究一隻股票時,歷史表現是一個很好的起點,因為在歷史表現上方,你可以看到大連絕緣子集團ROCE相對於其先前回報的衡量標準。如果你想深入研究大連絕緣子集團的歷史收益、收入和現金流,請查看以下內容免費圖表在這裏。
ROCE的走勢告訴我們什麼
目前的資本回報率比我們在大連絕緣子集團看到的更高。該公司在過去五年中增聘了59%的資本,這些資本的回報率一直穩定在8.8%。鑑於該公司增加了已動用資本的數量,這些投資似乎根本不能帶來高的資本回報。
還有一點需要注意的是,儘管ROCE在過去五年中相對持平,但從企業主的角度來看,流動負債減少到總資產的16%是件好事。實際上,供應商現在為這項業務提供的資金減少了,這可以降低一些風險因素。
大連絕緣子集團ROCE值得我們借鑑
總而言之,大連絕緣子集團一直在向該業務投入更多資本,但這些資本的回報並沒有增加。投資者肯定認為未來會有更好的事情發生,因為該公司的股票已經走出了困境,為過去三年持有的股東帶來了104%的收益。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。
不過,大連絕緣子集團確實存在一些風險,我們已經發現大連絕緣子組1個警示標誌你可能會感興趣的。
雖然大連絕緣子集團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。