What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing 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. With that in mind, we've noticed some promising trends at Shougang Fushan Resources Group (HKG:639) so let's look a bit deeper.
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 Shougang Fushan Resources Group is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.19 = HK$3.9b ÷ (HK$25b - HK$3.9b) (Based on the trailing twelve months to December 2021).
Thus, Shougang Fushan Resources Group has an ROCE of 19%. In absolute terms, that's a satisfactory return, but compared to the Metals and Mining industry average of 14% it's much better.
View our latest analysis for Shougang Fushan Resources Group
SEHK:639 Return on Capital Employed July 18th 2022
Above you can see how the current ROCE for Shougang Fushan Resources Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for Shougang Fushan Resources Group.
What The Trend Of ROCE Can Tell Us
We like the trends that we're seeing from Shougang Fushan Resources Group. The data shows that returns on capital have increased substantially over the last five years to 19%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 21%. So we're very much inspired by what we're seeing at Shougang Fushan Resources Group thanks to its ability to profitably reinvest capital.
The Bottom Line On Shougang Fushan Resources Group's ROCE
In summary, it's great to see that Shougang Fushan Resources Group can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And a remarkable 170% total return over the last five years tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.
On a final note, we found 2 warning signs for Shougang Fushan Resources Group (1 is a bit unpleasant) you should be aware of.
While Shougang Fushan Resources Group 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.
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?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。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。考虑到这一点,我们在以下方面注意到一些有希望的趋势首钢福山资源集团(HKG:639)所以让我们看得更深一点。
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。首钢福山资源集团的这一计算公式为:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.19=港币39亿?(港币250亿-港币39亿)(根据截至2021年12月的往绩12个月计算).
因此,首钢福山资源集团的净资产收益率为19%。就绝对值而言,这是一个令人满意的回报率,但与金属和矿业14%的平均回报率相比,这要好得多。
查看我们对首钢福山资源集团的最新分析
联交所:2022年7月18日资本回报率639
上面你可以看到首钢福山资源集团目前的净资产收益率与之前的资本回报率相比如何,但你只能从过去知道这么多。如果您想查看分析师对未来的预测,您应该查看我们的免费为首钢福山资源集团报到。
ROCE的走势告诉我们什么
我们喜欢从首钢福山资源集团看到的趋势。数据显示,过去五年,资本回报率大幅上升至19%。该公司实际上每使用一美元资本就能赚到更多的钱,值得注意的是,资本额也增加了21%。因此,我们对首钢福山资源集团的情况非常感兴趣,这要归功于它有能力进行有利可图的资本再投资。
首钢福山资源集团ROCE的底线
总而言之,很高兴看到首钢福山资源集团能够通过持续不断地以不断提高的回报率进行资本再投资来实现复合回报,因为这些都是那些备受追捧的多重投资的关键因素。过去五年170%的惊人总回报率告诉我们,投资者期待未来会有更多好事情发生。因此,鉴于该股已证明其趋势看好,有必要对该公司进行进一步研究,看看这些趋势是否可能持续下去。
最后,我们发现2首钢福山资源集团的警示标志(1有点令人不快)你应该知道。
虽然首钢福山资源集团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。