Alta Equipment Group (NYSE:ALTG) Will Want To Turn Around Its Return Trends
Alta Equipment Group (NYSE:ALTG) Will Want To Turn Around Its Return Trends
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base 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. Having said that, from a first glance at Alta Equipment Group (NYSE:ALTG) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
要找到一个multi-bagger的股票，我们需要在业务中寻找哪些潜在的趋势？首先，我们想要找到一个增长中的ROCE，同时还要有不断增长的资本投入基础。如果你看到了这一点，通常意味着这是一家拥有出色业务模型和大量盈利再投资机会的公司。话虽如此，在初看Alta Equipment Group (NYSE:ALTG)时，我们不会因为回报率的趋势而情绪激动，但让我们来更深入地看一下。
Return On Capital Employed (ROCE): What Is It?
资本雇用回报率（ROCE）是什么？
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 Alta Equipment Group is:
对于那些不确定ROCE是什么的人来说，它衡量了公司从业务中所投入资本所能产生的税前利润的金额。其在Alta Equipment Group的计算公式是：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
资产雇用回报率（ROCE）是指企业利润，即企业税前利润除以企业投入的总资本（负债加股权）。如果ROCE高于企业财务成本的承受能力，那么企业就会创造出更多的价值。
0.044 = US$41m ÷ (US$1.6b - US$631m) (Based on the trailing twelve months to March 2024).
0.044 = US$4100万 ÷ (US$16亿 - US$631m)（基于Trailing Twelve Month截至2024年3月）。
Therefore, Alta Equipment Group has an ROCE of 4.4%. In absolute terms, that's a low return and it also under-performs the Trade Distributors industry average of 13%.
因此，Alta Equipment Group的ROCE为4.4%。从绝对意义上来说，这是一个很低的回报率，也低于Trade Distributors行业的平均水平13%。
In the above chart we have measured Alta Equipment Group's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Alta Equipment Group for free.
在上面的图表中，我们根据Alta Equipment Group以往的表现，衡量了其以前的ROCE，但未来才是更重要的。如果你愿意，你可以免费查看覆盖Alta Equipment Group的分析师的预测。
The Trend Of ROCE
当寻找下一个倍增器时，如果您不确定从哪里开始，请关注几个关键趋势。首先，我们希望看到一个经过验证的资本使用率。如果您看到这一点，通常意味着这是一家拥有出色业务模式和大量盈利再投资机会的公司。然而，调查蒙托克可再生能源公司（NASDAQ：MNTK）后，我们认为它的现行趋势不符合倍增器的模式。
When we looked at the ROCE trend at Alta Equipment Group, we didn't gain much confidence. To be more specific, ROCE has fallen from 17% over the last five years. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
当我们查看Alta Equipment Group的ROCE趋势时，我们没有得到太多的信心。更具体地说，ROCE在过去五年中从17%下降到了目前的水平。虽然，由于营收和业务中雇用的资产已经增加，这可能表明公司正在投资于增长，并导致了ROCE的短期下降。如果增加的资本产生了更多的回报，公司和股东将在长期受益。
On a side note, Alta Equipment Group has done well to pay down its current liabilities to 40% of total assets. That could partly explain why the ROCE has dropped. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE. Either way, they're still at a pretty high level, so we'd like to see them fall further if possible.
顺便说一下，Alta Equipment Group已经成功地把其流动负债减少到总资产的40%。这可能在一定程度上解释了为什么ROCE下降。实际上，这意味着他们的供应商或短期债权人在为业务提供更少的资金，从而降低了某些风险因素。由于企业基本上在使用自己的资金来资助其运营，您可以认为这使得企业在产生ROCE方面效率更低。不管怎样，他们仍然处于一个相当高的水平，所以如果可能的话，我们希望看到他们进一步下降。
What We Can Learn From Alta Equipment Group's ROCE
我们可以从Alta Equipment Group的ROCE中学到什么？
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Alta Equipment Group. These trends are starting to be recognized by investors since the stock has delivered a 4.2% gain to shareholders who've held over the last five years. Therefore we'd recommend looking further into this stock to confirm if it has the makings of a good investment.
尽管短期资本回报率下降，但我们发现Alta Equipment Group的营收和资本投入都有增长，这是有希望的。这些趋势开始被投资者认可，因为该股票在过去五年中为持有股票的股东提供了4.2%的收益。因此，我们建议进一步研究这个股票，以确定它是否具有良好的投资潜力。
One final note, you should learn about the 3 warning signs we've spotted with Alta Equipment Group (including 1 which is concerning) .
最后，你应该了解Alta Equipment Group的3个警告信号（包括1个引人关注的警告信号）。
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.
Hao Tian International Construction Investment Group确实存在一些风险，我们已经发现了一条警示标志，你可能会感兴趣。对于那些喜欢投资于实力雄厚的公司的人，可以查看这个由财务状况强大、股本回报率高的公司组成的免费列表。
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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