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. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. In light of that, when we looked at Eversource Energy (NYSE:ES) 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. The formula for this calculation on Eversource Energy is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.051 = US$2.3b ÷ (US$52b - US$5.5b) (Based on the trailing twelve months to September 2022).
So, Eversource Energy has an ROCE of 5.1%. Even though it's in line with the industry average of 4.6%, it's still a low return by itself.
View our latest analysis for Eversource Energy
NYSE:ES Return on Capital Employed December 20th 2022
In the above chart we have measured Eversource Energy'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 The Trend Of ROCE Can Tell Us
In terms of Eversource Energy's historical ROCE trend, it doesn't exactly demand attention. The company has employed 51% more capital in the last five years, and the returns on that capital have remained stable at 5.1%. This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments.
The Key Takeaway
As we've seen above, Eversource Energy's returns on capital haven't increased but it is reinvesting in the business. Although the market must be expecting these trends to improve because the stock has gained 55% over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.
One more thing: We've identified 2 warning signs with Eversource Energy (at least 1 which is a bit concerning) , and understanding them would certainly be useful.
While Eversource Energy isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
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如果你正在寻找一个多袋子,有几个东西需要注意。一种常见的方法是尝试找到一家拥有退货已使用资本(ROCE)正在增加,同时也在增长金额已动用资本的比例。基本上,这意味着一家公司有盈利的举措,可以继续进行再投资,这是复合机器的一个特点。有鉴于此,当我们看到恒源能源(纽约证券交易所股票代码:ES)及其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。Everource Energy的计算公式为:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.051美元=23亿美元(520亿美元-55亿美元)(基于截至2022年9月的过去12个月).
所以,Everource Energy的净资产收益率为5.1%。尽管这与4.6%的行业平均水平一致,但这本身仍然是一个低回报。
查看我们对Everource Energy的最新分析
纽约证券交易所:ES资本回报率2022年12月20日
在上面的图表中,我们对比了Eversource Energy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。
ROCE的走势告诉我们什么
就Everource Energy历史上的ROCE趋势而言,它并不完全需要关注。该公司在过去五年中增聘了51%的资本,这些资本的回报率一直稳定在5.1%。这种糟糕的ROCE目前并没有激发人们的信心,而且随着所用资本的增加,很明显,该公司没有将资金用于高回报投资。
关键的外卖
正如我们在上面看到的,Everource Energy的资本回报率并没有增加,但它正在对业务进行再投资。尽管市场肯定预计这些趋势会改善,因为该股在过去五年中上涨了55%。归根结底,如果潜在的趋势持续下去,我们不会屏息于它是一个多袋子未来。
还有一件事:我们已经确定了2个警告标志对于Everource Energy(至少1,这有点令人担忧),了解它们肯定会很有用。
虽然Everource Energy并没有获得最高的回报,但看看这个免费资产负债表稳健、股本回报率高的公司名单。
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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。