If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. In light of that, when we looked at Swancor Advanced Materials (SHSE:688585) and its ROCE trend, we weren't exactly thrilled.
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. To calculate this metric for Swancor Advanced Materials, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.064 = CN¥70m ÷ (CN¥1.7b - CN¥646m) (Based on the trailing twelve months to June 2022).
Thus, Swancor Advanced Materials has an ROCE of 6.4%. In absolute terms, that's a low return and it also under-performs the Chemicals industry average of 9.8%.
View our latest analysis for Swancor Advanced Materials
SHSE:688585 Return on Capital Employed October 18th 2022
Historical performance is a great place to start when researching a stock so above you can see the gauge for Swancor Advanced Materials' ROCE against it's prior returns. If you'd like to look at how Swancor Advanced Materials has performed in the past in other metrics, you can view this free graph of past earnings, revenue and cash flow.
The Trend Of ROCE
In terms of Swancor Advanced Materials' historical ROCE trend, it doesn't exactly demand attention. The company has consistently earned 6.4% for the last four years, and the capital employed within the business has risen 38% in that time. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital.
In Conclusion...
In summary, Swancor Advanced Materials has simply been reinvesting capital and generating the same low rate of return as before. Additionally, the stock's total return to shareholders over the last year has been flat, which isn't too surprising. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere.
One more thing: We've identified 2 warning signs with Swancor Advanced Materials (at least 1 which makes us a bit uncomfortable) , and understanding them would certainly be useful.
While Swancor Advanced Materials 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.
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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.
如果我们想要找到一只可以长期成倍增长的股票,我们应该寻找什么潜在趋势?理想情况下,一家企业将呈现两种趋势;第一,增长退货关于已使用资本(ROCE),第二,增加金额已动用资本的比例。如果你看到这个,通常意味着它是一家拥有出色商业模式和大量有利可图的再投资机会的公司。有鉴于此,当我们看到斯旺科先进材料(上海证券交易所:688585)和它的ROCE趋势,我们并不是很兴奋。
了解资本回报率(ROCE)
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Swancor高级材料的这一指标,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)
0.064=7000万加元?(17亿加元-6.46亿加元)(根据截至2022年6月的往绩12个月计算).
因此,斯旺科先进材料的净资产收益率为6.4%。按绝对值计算,这是一个较低的回报率,也低于9.8%的化工行业平均水平。
查看我们对Swancor高级材料的最新分析
上证所:2022年10月18日资本回报率688585
当研究一只股票时,历史表现是一个很好的起点,所以在上面你可以看到Swancor Advanced Material的ROCE相对于它之前的回报的衡量标准。如果你想看看斯万科先进材料过去在其他指标上的表现,你可以查看以下内容免费过去收益、收入和现金流的图表。
ROCE的发展趋势
就斯旺科先进材料的历史ROCE趋势而言,它并不完全需要关注。过去四年,该公司持续盈利6.4%,同期公司内部资本增长了38%。鉴于该公司增加了已动用资本的数量,这些投资似乎根本不能带来高的资本回报。
总之..。
总而言之,斯旺科先进材料公司只是在对资本进行再投资,并产生了与以前一样低的回报率。此外,该股去年给股东带来的总回报持平,这并不太令人意外。总体而言,我们不太受潜在趋势的鼓舞,我们认为在其他地方可能会有更好的机会找到多个袋子。
还有一件事:我们已经确定了2个警告标志使用Swancor高级材料(至少1个,这让我们有点不舒服),了解它们肯定会很有用。
虽然斯旺科先进材料公司目前的回报率可能不是最高的,但我们已经编制了一份目前股本回报率超过25%的公司名单。看看这个免费在这里列出。
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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。