If you're looking for a multi-bagger, there's a few things to keep an eye out for. 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. 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 TravelSky Technology (HKG:696), it didn't seem to tick all of these boxes.
Understanding 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. Analysts use this formula to calculate it for TravelSky Technology:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.029 = CN¥572m ÷ (CN¥25b - CN¥5.0b) (Based on the trailing twelve months to June 2022).
Thus, TravelSky Technology has an ROCE of 2.9%. Ultimately, that's a low return and it under-performs the IT industry average of 6.2%.
Check out our latest analysis for TravelSky Technology
SEHK:696 Return on Capital Employed September 16th 2022
Above you can see how the current ROCE for TravelSky Technology compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free report on analyst forecasts for the company.
The Trend Of ROCE
On the surface, the trend of ROCE at TravelSky Technology doesn't inspire confidence. Around five years ago the returns on capital were 16%, but since then they've fallen to 2.9%. Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased.
The Bottom Line
We're a bit apprehensive about TravelSky Technology because despite more capital being deployed in the business, returns on that capital and sales have both fallen. It should come as no surprise then that the stock has fallen 36% over the last five years, so it looks like investors are recognizing these changes. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere.
If you're still interested in TravelSky Technology it's worth checking out our FREE intrinsic value approximation to see if it's trading at an attractive price in other respects.
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and 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.
如果你正在尋找一個多袋子,有幾個東西需要注意。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。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,當我們看到旅行者天空科技(HKG:696),它似乎沒有勾選所有這些框。
瞭解資本回報率(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。分析師對TravelSky Technology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)
0.029=CN元5.72億?(CN元250B-CN元50億)(根據截至2022年6月的往績12個月計算).
因此,TravelSky Technology的淨資產收益率為2.9%。歸根結底,這是一個較低的回報率,表現低於IT行業6.2%的平均水平。
查看我們對TravelSky Technology的最新分析
聯交所:696已動用資本回報率2022年9月16日
上面你可以看到TravelSky Technology目前的淨資產收益率(ROCE)與其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的發展趨勢
從表面上看,TravelSky Technology的ROCE趨勢並沒有激發人們的信心。大約五年前,資本回報率為16%,但自那以來已降至2.9%。考慮到該公司在收入下滑的情況下僱傭了更多的資本,這有點令人擔憂。如果這種情況持續下去,你可能會看到這樣一家公司,它正試圖通過再投資實現增長,但由於銷售額沒有增長,實際上正在失去市場份額。
底線
我們有點擔心TravelSky Technology,因為儘管該業務投入了更多資本,但這些資本的回報率和銷售額都有所下降。因此,該公司股價在過去五年裏下跌了36%也就不足為奇了,所以看起來投資者正在意識到這些變化。除非這些指標出現轉向更積極的軌跡,否則我們會把目光投向其他地方。
如果您仍然對TravelSky Technology感興趣,那麼值得查看我們的自由內在值近似看看它在其他方面的交易價格是否有吸引力。
對於那些喜歡投資於穩固的公司,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。