Algoma Steel Group (NASDAQ:ASTL) Could Be Struggling To Allocate Capital
Algoma Steel Group (NASDAQ:ASTL) Could Be Struggling To Allocate Capital
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'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Having said that, from a first glance at Algoma Steel Group (NASDAQ:ASTL) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
如果你不确定在寻找下一个多倍行情时从何处开始，那么有一些关键趋势你应该留意。首先，我们希望确定资本雇用回报率（ROCE）的增长，然后再加上不断增长的资本雇用基础。这表明它是一个复合机器，能够不断地将其盈利重新投入企业并产生更高的回报。尽管如此，我们对Algoma钢铁集团（纳斯达克:ASTL）的回报率走势并不满意，但让我们更深入地探究一下。
Return On Capital Employed (ROCE): What Is It?
资本雇用回报率（ROCE）是什么？
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 Algoma Steel Group, this is the formula:
只是为了澄清，如果你不确定，ROCE是一个评估公司在其业务中投资的资本所赚取的税前收入（按百分比计算）的指标。要为Algoma钢铁集团计算这个指标，使用以下公式：
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。
0.065 = CA$147m ÷ (CA$2.7b - CA$429m) (Based on the trailing twelve months to March 2024).
0.065 = CA$14700万 ÷ (CA$27亿 - CA$429m) （以2024年3月为截止时间的过去十二个月为基准）。
Thus, Algoma Steel Group has an ROCE of 6.5%. Ultimately, that's a low return and it under-performs the Metals and Mining industry average of 8.8%.
因此，Algoma钢铁集团的ROCE为6.5%。总体而言，这是一个低回报率，低于贵金属和矿业行业板块平均水平8.8%。
Above you can see how the current ROCE for Algoma Steel 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 analyst report for Algoma Steel Group .
你可以看到Algoma钢铁集团的当前ROCE与以前的资本回报率相比较的情况，但从过去只能看出那么多。如果你想了解分析师对未来的预测，你应该查看我们针对Algoma钢铁集团的免费分析师报告。
What Does the ROCE Trend For Algoma Steel Group Tell Us?
Algoma钢铁集团的ROCE趋势告诉我们什么？
In terms of Algoma Steel Group's historical ROCE movements, the trend isn't fantastic. Around five years ago the returns on capital were 24%, but since then they've fallen to 6.5%. However it looks like Algoma Steel Group might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It may take some time before the company starts to see any change in earnings from these investments.
就Algoma钢铁集团的历史ROCE走势而言，这种趋势并不理想。大约五年前资本回报率是24%，但自那以后下降到6.5%。然而，看起来Algoma钢铁集团可能会持续为长期增长而重新投资，因为尽管资本雇用增加了，但公司的销售额在过去12个月内并没有太大变化。这可能需要一些时间，直到公司开始看到这些投资的收益变化。
On a related note, Algoma Steel Group has decreased its current liabilities to 16% of total assets. That could partly explain why the ROCE has dropped. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
另外，Algoma钢铁集团已经将其流动负债降低到总资产的16%。这可能在一定程度上解释了ROCE的下降。此外，这可以减少公司的一些风险方面，因为现在公司的供应商或短期债权人承担了其运营的一部分资金。一些人可能会认为，这降低了企业产生ROCE的效率，因为现在它正在用自己的资金资助更多的运营。
The Bottom Line
还有一件事需要注意的是，我们已经确定了上海医药的2个警告信号，了解这些信号应该成为你的投资过程的一部分。
To conclude, we've found that Algoma Steel Group is reinvesting in the business, but returns have been falling. Additionally, the stock's total return to shareholders over the last three years has been flat, which isn't too surprising. In any case, the stock doesn't have these traits of a multi-bagger discussed above, so if that's what you're looking for, we think you'd have more luck elsewhere.
总之，我们发现Algoma钢铁集团正在对企业进行重新投资，但回报率下降。此外，股票在过去三年里的总回报率相对平稳，这并不令人惊讶。无论如何，该股票没有以上讨论的多倍行情特质，因此如果你正在寻找这样的投资，我们认为你在别的地方会更加成功。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for Algoma Steel Group (of which 1 is potentially serious!) that you should know about.
由于几乎每个公司都面临一些风险，因此了解这些风险是值得的。我们发现了Algoma钢铁集团的3个警告信号（其中1个可能是严重的！），你应该知道。
While Algoma Steel Group isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
虽然Algoma钢铁集团的回报率不是最高的，但是，查看这个高股权回报率的公司及其扎实的资产负债表的免费名单。
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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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