To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So, when we ran our eye over China Yongda Automobiles Services Holdings' (HKG:3669) trend of ROCE, we liked what we saw.
Return On Capital Employed (ROCE): What Is It?
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 China Yongda Automobiles Services Holdings, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.17 = CN¥3.1b ÷ (CN¥31b - CN¥13b) (Based on the trailing twelve months to June 2022).
Therefore, China Yongda Automobiles Services Holdings has an ROCE of 17%. On its own, that's a standard return, however it's much better than the 11% generated by the Specialty Retail industry.
Check out our latest analysis for China Yongda Automobiles Services Holdings
SEHK:3669 Return on Capital Employed September 17th 2022
In the above chart we have measured China Yongda Automobiles Services Holdings' prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering China Yongda Automobiles Services Holdings here for free.
What Does the ROCE Trend For China Yongda Automobiles Services Holdings Tell Us?
The trend of ROCE doesn't stand out much, but returns on a whole are decent. Over the past five years, ROCE has remained relatively flat at around 17% and the business has deployed 74% more capital into its operations. Since 17% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders.
On a side note, China Yongda Automobiles Services Holdings has done well to reduce current liabilities to 42% of total assets over the last five years. This can eliminate some of the risks inherent in the operations because the business has less outstanding obligations to their suppliers and or short-term creditors than they did previously. Although because current liabilities are still 42%, some of that risk is still prevalent.
The Bottom Line
The main thing to remember is that China Yongda Automobiles Services Holdings has proven its ability to continually reinvest at respectable rates of return. Yet over the last five years the stock has declined 44%, so the decline might provide an opening. For that reason, savvy investors might want to look further into this company in case it's a prime investment.
Like most companies, China Yongda Automobiles Services Holdings does come with some risks, and we've found 1 warning sign that you should be aware of.
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
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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.
要找到一只多袋股票,我们应该在一家企业中寻找什么潜在趋势?首先,我们想要确定一个不断增长的退货在已使用资本(ROCE)上,然后在此基础上,不断增加基地已动用资本的比例。归根结底,这表明它是一家正在以越来越高的回报率对利润进行再投资的企业。所以,当我们扫视的时候中国永达汽车服务控股有限公司(HKG:3669)ROCE趋势,我们喜欢我们所看到的。
资本回报率(ROCE):它是什么?
如果您不确定,只需澄清一下,ROCE是一种评估公司投资于其业务的资本获得多少税前收入(按百分比计算)的指标。要计算中国永达汽车服务控股有限公司的这一指标,公式如下:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.17=CN元31亿?(CN元31B-CN元13亿)(根据截至2022年6月的往绩12个月计算).
所以呢,中国永达汽车服务控股有限公司拥有17%的净资产收益率。就其本身而言,这是一个标准的回报,但它比专业零售业11%的回报率要好得多。
查看我们对中国永达汽车服务控股公司的最新分析
联交所:3669 2022年9月17日资本回报率
在上面的图表中,我们比较了中国永达汽车服务控股有限公司之前的净资产收益率和之前的业绩,但可以说,未来更重要。如果你愿意,你可以在这里查看中国永达汽车服务控股公司分析师的预测。免费的。
永达汽车服务控股公司的ROCE趋势告诉了我们什么?
ROCE的趋势并不是很突出,但总体来说回报是不错的。在过去五年中,净资产收益率相对持平,保持在17%左右,该业务在运营中投入的资本增加了74%。尽管17%的净资产收益率是中等水平,但很高兴看到一家企业能够继续以如此可观的回报率进行再投资。这样的稳定回报可能并不令人兴奋,但如果它们能够长期保持下去,它们往往会为股东提供丰厚的回报。
另外,中国永达汽车服务控股有限公司在过去五年将流动负债降至总资产的42%方面做得很好。这可以消除业务中固有的一些风险,因为企业对供应商和/或短期债权人的未偿债务比以前少了。尽管由于流动负债仍为42%,但其中一些风险仍然普遍存在。
底线
要记住的主要一点是,中国永达汽车服务控股有限公司已经证明了它有能力继续以可观的回报率进行再投资。然而,在过去五年中,该股下跌了44%,因此这一下跌可能提供了一个机会。出于这个原因,精明的投资者可能希望更深入地研究这家公司,以防它是一项主要投资。
像大多数公司一样,中国永达汽车服务控股有限公司确实存在一些风险,我们发现1个警告标志这一点你应该知道。
如果你想寻找收入丰厚的可靠公司,看看这个免费拥有良好资产负债表和可观股本回报率的公司名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。