If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount 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. So on that note, FLEETCOR Technologies (NYSE:FLT) looks quite promising in regards to its trends of return on capital.
What Is Return On Capital Employed (ROCE)?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for FLEETCOR Technologies:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.17 = US$1.4b ÷ (US$15b - US$6.4b) (Based on the trailing twelve months to June 2022).
Therefore, FLEETCOR Technologies has an ROCE of 17%. On its own, that's a standard return, however it's much better than the 12% generated by the IT industry.
See our latest analysis for FLEETCOR Technologies
NYSE:FLT Return on Capital Employed October 4th 2022
In the above chart we have measured FLEETCOR Technologies' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free report for FLEETCOR Technologies.
What Does the ROCE Trend For FLEETCOR Technologies Tell Us?
FLEETCOR Technologies is displaying some positive trends. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 17%. The amount of capital employed has increased too, by 28%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.
On a separate but related note, it's important to know that FLEETCOR Technologies has a current liabilities to total assets ratio of 44%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks.
Our Take On FLEETCOR Technologies' ROCE
A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what FLEETCOR Technologies has. Considering the stock has delivered 12% to its stockholders over the last five years, it may be fair to think that investors aren't fully aware of the promising trends yet. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up.
FLEETCOR Technologies does have some risks, we noticed 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
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.
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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.
如果你正在尋找一個多袋子,有幾個東西需要注意。一種常見的方法是嘗試找到一家擁有退貨已使用資本(ROCE)正在增加,同時也在增長金額已動用資本的比例。這向我們表明,它是一臺複合機器,能夠不斷地將其收益再投資於企業,併產生更高的回報。所以在這個音符上,FleetCor技術公司(紐約證券交易所代碼:FLT)在其資本回報率趨勢方面看起來相當有希望。
什麼是資本回報率(ROCE)?
如果你以前沒有使用過ROCE,它衡量的是一家公司從業務資本中獲得的“回報”(税前利潤)。分析師使用以下公式來計算FleetCor Technologies的價格:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.17美元=14億美元?(150億美元-64億美元)(根據截至2022年6月的往績12個月計算).
所以呢,FleetCor Technologies的淨資產收益率為17%。就其本身而言,這是一個標準的回報,但它比IT行業12%的回報率要好得多。
查看我們對FleetCor Technologies的最新分析
紐約證券交易所:FFT 2022年10月4日的資本回報率
在上面的圖表中,我們衡量了FleetCor Technologies之前的ROCE和它之前的表現,但可以説,未來更重要。如果您想查看分析師對未來的預測,您應該查看我們的免費為FleetCor Technologies提供報告。
FleetCor Technologies的ROCE趨勢告訴我們什麼?
FleetCor Technologies正在顯示出一些積極的趨勢。數字顯示,在過去五年中,資本回報率大幅增長至17%。所使用的資本額也增加了28%。這可能表明,有很多機會在內部以更高的利率進行資本投資,這種組合在多頭投資者中很常見。
在另外一個相關的問題上,重要的是要知道FleetCor Technologies的流動負債與總資產的比率為44%,我們認為這個比率相當高。這可能會帶來一些風險,因為該公司基本上是在相當大程度上依賴其供應商或其他類型的短期債權人運營的。理想情況下,我們希望看到這一比例降低,因為這將意味着承擔風險的債務更少。
我們對FleetCor Technologies的ROCE的看法
一家資本回報率不斷增長、能夠持續對自身進行再投資的公司是一個備受追捧的特徵,而這正是FleetCor Technologies所擁有的。考慮到該股在過去五年中為股東帶來了12%的收益,我們或許可以公平地認為,投資者還沒有完全意識到前景看好。因此,如果估值和其他指標疊加在一起,探索更多關於這隻股票的信息可能會發現一個很好的機會。
我們注意到,FleetCor Technologies確實存在一些風險2個警告標誌(還有一點不可忽視)我們認為你應該知道這一點。
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。