To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. With that in mind, we've noticed some promising trends at Delong Composite Energy Group (SZSE:000593) 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. To calculate this metric for Delong Composite Energy Group, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.076 = CN¥115m ÷ (CN¥2.1b - CN¥569m) (Based on the trailing twelve months to June 2022).
Therefore, Delong Composite Energy Group has an ROCE of 7.6%. Ultimately, that's a low return and it under-performs the Gas Utilities industry average of 10.0%.
See our latest analysis for Delong Composite Energy Group
SZSE:000593 Return on Capital Employed October 25th 2022
Historical performance is a great place to start when researching a stock so above you can see the gauge for Delong Composite Energy Group's ROCE against it's prior returns. If you're interested in investigating Delong Composite Energy Group's past further, check out this free graph of past earnings, revenue and cash flow.
What Does the ROCE Trend For Delong Composite Energy Group Tell Us?
Delong Composite Energy Group's ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 265% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects.
On a side note, we noticed that the improvement in ROCE appears to be partly fueled by an increase in current liabilities. Essentially the business now has suppliers or short-term creditors funding about 27% of its operations, which isn't ideal. Keep an eye out for future increases because when the ratio of current liabilities to total assets gets particularly high, this can introduce some new risks for the business.
The Key Takeaway
To sum it up, Delong Composite Energy Group is collecting higher returns from the same amount of capital, and that's impressive. Astute investors may have an opportunity here because the stock has declined 23% in the last five years. So researching this company further and determining whether or not these trends will continue seems justified.
On a final note, we've found 1 warning sign for Delong Composite Energy Group that we think you should be aware of.
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.
要找到一只多袋股票,我们应该在一家企业中寻找什么潜在趋势?首先,我们希望看到一个经过验证的退货关于已使用资本(ROCE)的增长,其次是扩张基地已动用资本的比例。归根结底,这表明它是一家正在以越来越高的回报率对利润进行再投资的企业。考虑到这一点,我们在以下方面注意到一些有希望的趋势德隆综合能源集团(SZSE:000593)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。要计算德隆综合能源集团的这一指标,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)
0.076=CN元1.15亿?(CN元21亿-CN元5.69亿)(根据截至2022年6月的往绩12个月计算).
所以呢,德隆综合能源集团的净资产收益率为7.6%。归根结底,这是一个很低的回报率,而且它的表现低于天然气公用事业行业10.0%的平均水平。
查看我们对德龙复合能源集团的最新分析
深圳证交所:2022年10月25日资本回报率000593
当研究一只股票时,历史表现是一个很好的起点,因为在历史表现上方,你可以看到德龙综合能源集团的ROCE相对于它之前的回报的衡量标准。如果你有兴趣进一步调查德龙综合能源集团的过去,请查看以下内容免费过去收益、收入和现金流的图表。
德龙复合能源集团的ROCE走势告诉了我们什么?
德隆综合能源集团的ROCE增长令人印象深刻。更具体地说,尽管该公司在过去五年中使用的资本相对持平,但同期ROCE却攀升了265%。因此,由于所用资本没有太大变化,该公司现在很可能正在从过去的投资中获得全部好处。从这个意义上讲,该公司的表现很好,值得研究一下管理团队对长期增长前景的规划。
另外,我们注意到ROCE的改善似乎部分是由流动负债的增加推动的。基本上,该公司现在有供应商或短期债权人为其约27%的业务提供资金,这并不理想。密切关注未来的增长,因为当流动负债与总资产的比率变得特别高时,这可能会给业务带来一些新的风险。
关键的外卖
综上所述,德龙综合能源集团正在从相同的资本中获得更高的回报,这是令人印象深刻的。精明的投资者可能在这里有机会,因为该股在过去五年里下跌了23%。因此,进一步研究这家公司,并确定这些趋势是否会继续下去似乎是合理的。
最后一点,我们发现德龙复合能源集团的1个警示标志我们认为你应该意识到。
对于那些喜欢投资于稳固的公司,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。