If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. That's why when we briefly looked at Allegro MicroSystems' (NASDAQ:ALGM) ROCE trend, we were pretty happy with what we saw.
Understanding 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. The formula for this calculation on Allegro MicroSystems is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.16 = US$128m ÷ (US$926m - US$112m) (Based on the trailing twelve months to June 2022).
Thus, Allegro MicroSystems has an ROCE of 16%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Semiconductor industry average of 15%.
View our latest analysis for Allegro MicroSystems
NasdaqGS:ALGM Return on Capital Employed September 22nd 2022
Above you can see how the current ROCE for Allegro MicroSystems 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.
So How Is Allegro MicroSystems' ROCE Trending?
While the current returns on capital are decent, they haven't changed much. Over the past three years, ROCE has remained relatively flat at around 16% and the business has deployed 25% more capital into its operations. 16% is a pretty standard return, and it provides some comfort knowing that Allegro MicroSystems has consistently earned this amount. 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.
In Conclusion...
The main thing to remember is that Allegro MicroSystems has proven its ability to continually reinvest at respectable rates of return. Yet over the last year the stock has declined 36%, 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.
While Allegro MicroSystems doesn't shine too bright in this respect, it's still worth seeing if the company is trading at attractive prices. You can find that out with our FREE intrinsic value estimation on our platform.
While Allegro MicroSystems 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.
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.
如果我們想要找到一個潛在的多管齊下的人,往往有潛在的趨勢可以提供線索。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。簡而言之,這些類型的企業是複利機器,這意味着它們不斷地以越來越高的回報率對收益進行再投資。這就是為什麼當我們短暫地查看快板微系統公司(納斯達克:ALGM)ROCE趨勢,我們對所看到的相當滿意。
瞭解資本回報率(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。Allegro MicroSystems的計算公式為:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.16美元=1.28億美元?(9.26億美元-1.12億美元)(根據截至2022年6月的往績12個月計算).
因此,Allegro MicroSystems的淨資產收益率為16%。按絕對值計算,這是一個相當正常的回報率,而且有點接近半導體行業15%的平均水平。
查看我們對Allegro MicroSystems的最新分析
NasdaqGS:ALGM資本回報率2022年9月22日
上面你可以看到Allegro MicroSystems目前的淨資產收益率(ROCE)與其先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。
那麼,Allegro MicroSystems的ROCE趨勢如何?
雖然目前的資本回報率還不錯,但變化不大。在過去三年中,淨資產收益率相對持平,保持在16%左右,該業務在運營中投入的資本增加了25%。16%是一個相當標準的回報,知道Allegro MicroSystems一直賺到這個數字,這讓人感到一些安慰。這樣的穩定回報可能並不令人興奮,但如果它們能夠長期保持下去,它們往往會為股東提供豐厚的回報。
總之..。
需要記住的主要一點是,Allegro MicroSystems已經證明瞭其持續以可觀的回報率進行再投資的能力。然而,在過去的一年裏,該股下跌了36%,因此這種下跌可能會提供一個機會。出於這個原因,精明的投資者可能希望更深入地研究這家公司,以防它是一項主要投資。
雖然Allegro MicroSystems在這方面的表現不是太好,但該公司的股價是否具有吸引力仍值得關注。您可以通過我們的自由內在價值估計在我們的平臺上。
雖然Allegro MicroSystems目前可能沒有獲得最高的回報,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。