To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base 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. So when we looked at the ROCE trend of Yadea Group Holdings (HKG:1585) we really liked what we saw.
What Is 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. To calculate this metric for Yadea Group Holdings, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.28 = CN¥1.7b ÷ (CN¥22b - CN¥16b) (Based on the trailing twelve months to June 2022).
Thus, Yadea Group Holdings has an ROCE of 28%. In absolute terms that's a great return and it's even better than the Auto industry average of 1.6%.
See our latest analysis for Yadea Group Holdings
SEHK:1585 Return on Capital Employed September 5th 2022
Above you can see how the current ROCE for Yadea Group Holdings compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Yadea Group Holdings here for free.
What Can We Tell From Yadea Group Holdings' ROCE Trend?
Yadea Group Holdings is displaying some positive trends. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 28%. The amount of capital employed has increased too, by 165%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.
For the record though, there was a noticeable increase in the company's current liabilities over the period, so we would attribute some of the ROCE growth to that. Effectively this means that suppliers or short-term creditors are now funding 73% of the business, which is more than it was five years ago. And with current liabilities at those levels, that's pretty high.
In Conclusion...
All in all, it's terrific to see that Yadea Group Holdings is reaping the rewards from prior investments and is growing its capital base. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. In light of that, we think it's worth looking further into this stock because if Yadea Group Holdings can keep these trends up, it could have a bright future ahead.
If you want to continue researching Yadea Group Holdings, you might be interested to know about the 1 warning sign that our analysis has discovered.
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.
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.
要找到一隻多袋股票,我們應該在一家企業中尋找什麼潛在趨勢?首先,我們希望看到一個經過驗證的退貨關於已使用資本(ROCE)的增長,其次是擴張基地已動用資本的比例。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。因此,當我們觀察ROCE的趨勢時亞迪亞集團控股(HKG:1585)我們真的很喜歡我們所看到的。
什麼是資本回報率(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。要計算雅迪亞集團控股的這一指標,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)
0.28=CN元17億?(CN元220億-CN元160億)(根據截至2022年6月的往績12個月計算).
因此,亞迪亞集團控股擁有28%的淨資產收益率。按絕對值計算,這是一個很高的回報率,甚至好於汽車業1.6%的平均水平。
查看我們對雅迪亞集團控股的最新分析
聯交所:1585已動用資本回報率2022年9月5日
上圖中,你可以看到亞迪亞集團控股公司目前的淨資產收益率與之前的資本回報率相比如何,但你只能從過去知道這麼多。如果你願意,你可以在這裏查看研究亞迪亞集團控股的分析師的預測免費的。
我們能從亞迪亞集團控股的ROCE趨勢中看出什麼?
雅迪亞集團控股正顯示出一些積極的趨勢。這些數字顯示,在過去五年中,資本回報率大幅增長至28%。所使用的資本額也增加了165%。越來越多的資本帶來越來越多的回報,這在多頭投資者中很常見,這就是為什麼我們對此印象深刻。
不過,根據記錄,在此期間,該公司的流動負債明顯增加,因此我們將ROCE的增長部分歸因於此。實際上,這意味着供應商或短期債權人現在為該業務提供了73%的資金,這一比例高於五年前。考慮到目前的負債水平,這是相當高的。
總之..。
總而言之,看到亞迪亞集團控股公司從之前的投資中獲得回報,並正在擴大其資本基礎,這是一件非常棒的事情。隨着該股在過去五年中表現異常出色,這些模式得到了投資者的考慮。有鑑於此,我們認為值得進一步研究這隻股票,因為如果亞迪亞集團控股公司能夠保持這些趨勢,它可能會有一個光明的未來。
如果您想繼續研究Yadea Group Holdings,您可能會有興趣瞭解1個警告標誌我們的分析發現。
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。
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。