What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. And in light of that, the trends we're seeing at Steven Madden's (NASDAQ:SHOO) look very promising so lets take a look.
Return On Capital Employed (ROCE): What Is It?
For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Steven Madden:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.35 = US$324m ÷ (US$1.3b - US$380m) (Based on the trailing twelve months to June 2022).
So, Steven Madden has an ROCE of 35%. That's a fantastic return and not only that, it outpaces the average of 15% earned by companies in a similar industry.
Check out our latest analysis for Steven Madden
NasdaqGS:SHOO Return on Capital Employed September 26th 2022
In the above chart we have measured Steven Madden's 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 Steven Madden's ROCE Trend?
Steven Madden is showing promise given that its ROCE is trending up and to the right. Looking at the data, we can see that even though capital employed in the business has remained relatively flat, the ROCE generated has risen by 51% over the last five years. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking.
The Key Takeaway
To sum it up, Steven Madden is collecting higher returns from the same amount of capital, and that's impressive. Investors may not be impressed by the favorable underlying trends yet because over the last five years the stock has only returned 3.1% to shareholders. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up.
One more thing: We've identified 2 warning signs with Steven Madden (at least 1 which shouldn't be ignored) , and understanding these would certainly be useful.
If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets 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.
我们应该寻找什么样的趋势,我们想要找出能够长期成倍增值的股票?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。这向我们表明,它是一台复合机器,能够不断地将其收益再投资于企业,并产生更高的回报。有鉴于此,我们看到的趋势史蒂文·马登的(纳斯达克:嘘)看起来很有前途,所以让我们来看看。
资本回报率(ROCE):它是什么?
对于那些不确定ROCE是什么的人,它衡量的是一家公司可以从其业务中使用的资本产生的税前利润。分析师使用以下公式为史蒂文·马登计算:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.35=3.24亿美元?(13亿-3.8亿美元)(根据截至2022年6月的往绩12个月计算).
所以,史蒂文·马登的净资产收益率为35%。这是一笔丰厚的回报,不仅如此,它还超过了同类行业公司15%的平均回报率。
看看我们对史蒂文·马登的最新分析
NasdaqGS:2022年9月26日实现资本回报率
在上面的图表中,我们比较了Steven Madden之前的ROCE和它之前的表现,但可以说,未来更重要。如果您感兴趣,您可以在我们的免费分析师对该公司的预测报告。
我们能从史蒂文·马登的ROCE趋势中看出什么呢?
鉴于其净资产收益率(ROCE)正呈上升和右倾趋势,史蒂文·马登(Steven Madden)正显示出希望。纵观数据,我们可以看到,尽管业务资本相对持平,但在过去5年中,净资产收益率上升了51%。基本上,这项业务从相同数额的资本中产生了更高的回报,这证明了公司的效率有所提高。然而,值得更深入地研究这一点,因为虽然业务效率更高是好事,但这也可能意味着,未来缺乏内部投资以实现有机增长的领域。
关键的外卖
综上所述,史蒂文·马登从相同数额的资本中获得了更高的回报,这令人印象深刻。投资者可能还不会对有利的潜在趋势印象深刻,因为在过去五年中,该股向股东返还的回报率仅为3.1%。因此,如果估值和其他指标叠加在一起,探索更多关于这只股票的信息可能会发现一个很好的机会。
还有一件事:我们已经确定了2个警告标志史蒂文·马登(至少有1个不应该被忽视),理解这些肯定是有用的。
如果您想看到其他公司获得高回报,请查看我们的免费这里列出了资产负债表稳健、获得高回报的公司。
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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。