If you're looking for a multi-bagger, there's a few things to 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. 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 Flowers Foods (NYSE:FLO), it didn't seem to tick all of these boxes.
What Is Return On Capital Employed (ROCE)?
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. To calculate this metric for Flowers Foods, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.13 = US$356m ÷ (US$3.3b - US$570m) (Based on the trailing twelve months to July 2022).
So, Flowers Foods has an ROCE of 13%. On its own, that's a standard return, however it's much better than the 9.5% generated by the Food industry.
Check out our latest analysis for Flowers Foods
NYSE:FLO Return on Capital Employed September 5th 2022
In the above chart we have measured Flowers Foods' 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 Can We Tell From Flowers Foods' ROCE Trend?
Over the past five years, Flowers Foods' ROCE and capital employed have both remained mostly flat. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. With that in mind, unless investment picks up again in the future, we wouldn't expect Flowers Foods to be a multi-bagger going forward. That probably explains why Flowers Foods has been paying out 71% of its earnings as dividends to shareholders. Most shareholders probably know this and own the stock for its dividend.
Our Take On Flowers Foods' ROCE
In a nutshell, Flowers Foods has been trudging along with the same returns from the same amount of capital over the last five years. Since the stock has gained an impressive 80% over the last five years, investors must think there's better things to come. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.
One more thing, we've spotted 3 warning signs facing Flowers Foods that you might find interesting.
While Flowers Foods 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.
如果你正在尋找一個多袋子,有幾個東西需要注意。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。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,當我們看到鮮花食品(紐約證券交易所代碼:FLO),它似乎沒有勾選所有這些框。
什麼是資本回報率(ROCE)?
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。要計算Flowers Foods的此指標,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)
0.13=3.56億美元?(33億-5.7億美元)(根據截至2022年7月的往績12個月計算).
所以,Flowers Foods的淨資產收益率為13%。就其本身而言,這是一個標準的回報率,但它比食品行業9.5%的回報率要好得多。
查看我們對花卉食品的最新分析
紐約證券交易所:Flo資本回報率2022年9月5日
在上面的圖表中,我們比較了Flowers Foods之前的ROCE和它之前的表現,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。
從Flowers Foods的ROCE趨勢中我們能看出什麼?
過去五年,Flowers Foods的淨資產收益率和已動用資本基本持平。當一家成熟而穩定的企業沒有對其收益進行再投資時,這種情況並不少見,因為它很可能已經度過了商業週期的那個階段。考慮到這一點,除非未來投資再次回升,否則我們不會指望Flowers Foods未來會成為一家多袋子公司。這可能解釋了為什麼Flowers Foods一直將收益的71%作為股息支付給股東。大多數股東可能知道這一點,並持有股票作為股息。
我們對Flowers Foods ROCE的看法
簡而言之,Flowers Foods在過去五年裏一直在艱難前行,從同樣數量的資本中獲得了同樣的回報。鑑於該股在過去五年中的漲幅高達80%,投資者一定認為未來會有更好的事情發生。歸根結底,如果潛在的趨勢持續下去,我們不會屏息於它是一個多袋子未來。
還有一件事,我們發現了3個警示標誌面對你可能會感興趣的鮮花食物。
雖然Flowers Foods目前的回報率可能不是最高的,但我們已經編制了一份目前股本回報率超過25%的公司名單。看看這個免費在這裏列出。
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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。