Capital Allocation Trends At Berry Global Group (NYSE:BERY) Aren't Ideal
Capital Allocation Trends At Berry Global Group (NYSE:BERY) Aren't Ideal
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. 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 Berry Global Group (NYSE:BERY) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
你知道有些財務指標可以提供潛在成倍增長的提示嗎?在一個完美的世界裏,我們希望看到一個公司將更多的資本投入到業務中,並且從這些資本中獲得的回報也在增加。這表明它是一個正在以遞增的回報率再投資利潤的公司。但是,經過簡要地查看這些數字,我們認爲Berry Global Group(紐交所:BERY)未來不具有成倍增長的潛力,但是讓我們看看爲什麼這樣。
Understanding Return On Capital Employed (ROCE)
上面您可以看到蒙托克可再生能源現行ROCE與之前資本回報的比較,但過去只能知道這麼多。如果您感興趣,可以查看我們免費的蒙托克可再生能源分析師報告,了解分析師的預測。
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. Analysts use this formula to calculate it for Berry Global Group:
對於不知道ROCE是什麼的人,它衡量了一家公司能夠從其業務中使用的資本產生的稅前利潤量。分析師使用這個公式爲Berry Global Group進行計算:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
資產僱用回報率(ROCE)是指企業利潤,即企業稅前利潤除以企業投入的總資本(負債加股權)。如果ROCE高於企業財務成本的承受能力,那麼企業就會創造出更多的價值。
0.081 = US$1.1b ÷ (US$16b - US$2.3b) (Based on the trailing twelve months to March 2024).
0.081 = 11億 ÷ (160億 - 2.3b) 在Elevance Health上,我們已經注意到的趨勢是相當令人放心的。數據顯示,過去五年資產回報率大幅提高至15%。投資所用資產的規模也增加了30%。這表明有很多機會進行內部資本投資,並以更高的速度不斷增長,這種組合在多倍增長方面很常見。.
Therefore, Berry Global Group has an ROCE of 8.1%. On its own, that's a low figure but it's around the 9.8% average generated by the Packaging industry.
因此,Berry Global Group的ROCE爲8.1%。單獨看這個數字很低,但是與包裝行業所平均獲得的9.8%相比,還可以。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240704/0-3e5c8f366841b506885960148be26db4-0-2722fb987d4e5ab0c1d513aca44d2738.png/big)
In the above chart we have measured Berry Global 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 Berry Global Group for free.
在以上圖表中,我們將Berry Global Group以前的ROCE與它以前的表現相比較,但是未來才是更爲重要的。如果您想的話,可以免費查看覆蓋Berry Global Group的分析師的預測。
So How Is Berry Global Group's ROCE Trending?
那Berry Global Group的ROCE趨勢如何?
In terms of Berry Global Group's historical ROCE movements, the trend isn't fantastic. Over the last five years, returns on capital have decreased to 8.1% from 10% five years ago. However it looks like Berry Global 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Berry Global Group的歷史ROCE走勢而言,這個趨勢並不理想。在過去的五年中,資本回報從五年前的10%降至8.1%。然而,看起來Berry Global Group可能正在爲長期增長而再投資,因爲雖然使用的資本增加了,但公司的銷售額在過去的12個月中沒有太大變化。在這些投資中獲得的收益可能需要一些時間才能看到變化。
In Conclusion...
最後,同等資本下回報率較低的趨勢通常不是我們關注創業板股票的最佳信號。由於這些發展進行良好,因此投資者不太可能表現友好。自五年前以來,該股下跌了32%。除非這些指標朝着更積極的軌跡轉變,否則我們將繼續尋找其他股票。
Bringing it all together, while we're somewhat encouraged by Berry Global Group's reinvestment in its own business, we're aware that returns are shrinking. Unsurprisingly, the stock has only gained 13% over the last five years, which potentially indicates that investors are accounting for this going forward. Therefore, if you're looking for a multi-bagger, we'd propose looking at other options.
綜上所述,雖然Berry Global Group重新投資其業務,但我們意識到回報正在縮水。毋庸置疑,過去五年中股價僅上漲了13%,這可能意味着投資者會在未來考慮這一點。因此,如果您正在尋找一個大收益股票,我們建議看看其他選擇。
If you'd like to know more about Berry Global Group, we've spotted 3 warning signs, and 1 of them can't be ignored.
如果您想了解更多關於Berry Global Group的信息,我們已發現了3個警示信號,其中1個信號必須忽略。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果您想尋找財務狀況良好、回報卓越的實力強企業,可以免費查看以下公司列表。
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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.
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或電郵 editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋?關於內容有所顧慮?直接和我們聯繫。或者,也可以發送電子郵件至editorial-team@simplywallst.com