What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after briefly looking over the numbers, we don't think Miramar Hotel and Investment Company (HKG:71) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
Return On Capital Employed (ROCE): What Is It?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Miramar Hotel and Investment Company, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.027 = HK$552m ÷ (HK$21b - HK$727m) (Based on the trailing twelve months to June 2022).
So, Miramar Hotel and Investment Company has an ROCE of 2.7%. Even though it's in line with the industry average of 2.9%, it's still a low return by itself.
See our latest analysis for Miramar Hotel and Investment Company
![roce](https://usnewsfile.futunn.com/pic/0-15658534-0-35ad242652b5b80226149afbe7cadeff.png/big)
SEHK:71 Return on Capital Employed October 16th 2022
Historical performance is a great place to start when researching a stock so above you can see the gauge for Miramar Hotel and Investment Company's ROCE against it's prior returns. If you want to delve into the historical earnings, revenue and cash flow of Miramar Hotel and Investment Company, check out these free graphs here.
What Does the ROCE Trend For Miramar Hotel and Investment Company Tell Us?
In terms of Miramar Hotel and Investment Company's historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 4.9% over the last five years. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run.
What We Can Learn From Miramar Hotel and Investment Company's ROCE
Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Miramar Hotel and Investment Company. And there could be an opportunity here if other metrics look good too, because the stock has declined 19% in the last five years. So we think it'd be worthwhile to look further into this stock given the trends look encouraging.
If you'd like to know about the risks facing Miramar Hotel and Investment Company, we've discovered 1 warning sign that you should be aware of.
While Miramar Hotel and Investment Company 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
我們應該尋找什麼樣的趨勢,我們想要找出能夠長期成倍增值的股票?通常,我們會注意到一種增長的趨勢退貨關於已使用資本(ROCE)以及與之相伴隨的是不斷擴大的基地已動用資本的比例。歸根結底,這表明它是一家正在以越來越高的回報率對利潤進行再投資的企業。然而,在簡單地看了一下數字之後,我們認為美麗華酒店與投資公司(HKG:71)未來有可能成為一個多袋子的人,但讓我們看看為什麼會這樣。
資本回報率(ROCE):它是什麼?
對於那些不知道的人來説,ROCE是一家公司的年度税前利潤(其回報)相對於業務資本的衡量標準。要計算Miramar Hotel and Investment Company的此指標,公式如下:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.027=5.52億港元(210億-7.27億港元)(根據截至2022年6月的往績12個月計算).
所以,美麗華酒店和投資公司的淨資產收益率為2.7%。儘管這與2.9%的行業平均水平一致,但這本身仍然是一個低迴報。
查看我們對美麗華酒店和投資公司的最新分析
![roce](https://usnewsfile.futunn.com/pic/0-15658534-0-35ad242652b5b80226149afbe7cadeff.png/big)
聯交所:71 2022年10月16日的資本回報率
當研究一隻股票時,歷史表現是一個很好的起點,因為在歷史表現之上,你可以看到美麗華酒店和投資公司的ROCE相對於它之前的回報的衡量標準。如果你想深入研究美麗華酒店和投資公司的歷史收益、收入和現金流,請查看以下內容免費圖表在這裏。
美麗華酒店和投資公司的ROCE趨勢告訴我們什麼?
就美麗華酒店和投資公司歷史上的ROCE運動而言,這一趨勢並不美妙。更具體地説,ROCE在過去五年中從4.9%下降。然而,鑑於已動用資本和收入都有所增加,該業務目前似乎正在追求增長,這是短期回報的結果。如果增加的資本產生額外的回報,從長遠來看,企業和股東都將受益。
我們可以從美麗華酒店投資公司的ROCE中學到什麼
儘管資本回報率在短期內有所下降,但我們發現,美麗華酒店投資公司的收入和所用資本都有所增加,這是有希望的。如果其他指標也看起來不錯,這可能是一個機會,因為該股在過去五年中下跌了19%。因此,我們認為,鑑於趨勢看起來令人鼓舞,進一步研究這隻股票是值得的。
如果你想知道美麗華酒店和投資公司面臨的風險,我們發現1個警告標誌這一點你應該知道。
雖然美麗華酒店和投資公司目前的回報率可能不是最高的,但我們已經編制了一份目前股本回報率超過25%的公司名單。看看這個免費在這裏列出。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。