If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base 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. Speaking of which, we noticed some great changes in Sempra's (NYSE:SRE) returns on capital, so let's have 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. The formula for this calculation on Sempra is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.047 = US$3.6b ÷ (US$87b - US$10b) (Based on the trailing twelve months to December 2023).
So, Sempra has an ROCE of 4.7%. On its own that's a low return on capital but it's in line with the industry's average returns of 4.9%.
Above you can see how the current ROCE for Sempra compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Sempra for free.
What Does the ROCE Trend For Sempra Tell Us?
Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. Over the last five years, returns on capital employed have risen substantially to 4.7%. Basically the business is earning more per dollar of capital invested and in addition to that, 45% more capital is being employed now too. So we're very much inspired by what we're seeing at Sempra thanks to its ability to profitably reinvest capital.
Our Take On Sempra's ROCE
To sum it up, Sempra has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Since the stock has only returned 29% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So with that in mind, we think the stock deserves further research.
One more thing, we've spotted 2 warning signs facing Sempra that you might find interesting.
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
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次のマルチバッグの次を探す場合、注目すべき重要なトレンドがいくつかあります。まず、増加している資本利回り(ROCE)が証明された企業を見たいと思います。そして、資本利用額の拡大です。これを見ると、健全なビジネスモデルを持つ企業であり、収益性の高い再投資機会がたくさんあるということが典型的です。それについては、MGM China HoldingsのROCEに明らかな変化があることに気づいたので、見てみましょう。資本利回り (ROCE)とは何ですか?わからない方には、ROCEは企業が事業に使用する資本から、税引き前利益をどれだけ生成できるかを測定します。アナリストは以下の式を使用して、Bumi Armada BerhadのROCEを計算します。「ROCE = 利息や税金を除いた利益 (EBIT) ÷ (総資産 - 流動負債)」。したがって、ホームデポのROCEは40%です。それは素晴らしいリターンです。さらに、同じ業種の企業が獲得した13%の平均を上回っています。NYSE:HD Return on Capital Employed 2024年4月10日資金の運用に関するROCEとは、会社が収益性の高いイニシアチブを持っていることを意味し、複利機械の特性の1つです。そして、センプラ(NYSE:SRE)の資金利回りに素晴らしい変化が見られ、これを見てみましょう。