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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Having said that, while the ROCE is currently high for Texas Instruments (NASDAQ:TXN), we aren't jumping out of our chairs because returns are decreasing.
Return On Capital Employed (ROCE): What Is It?
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Texas Instruments:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.21 = US$6.5b ÷ (US$35b - US$3.6b) (Based on the trailing twelve months to March 2024).
Thus, Texas Instruments has an ROCE of 21%. That's a fantastic return and not only that, it outpaces the average of 9.7% earned by companies in a similar industry.
NasdaqGS:TXN Return on Capital Employed July 13th 2024
In the above chart we have measured Texas Instruments' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Texas Instruments .
What Can We Tell From Texas Instruments' ROCE Trend?
In terms of Texas Instruments' historical ROCE movements, the trend isn't fantastic. Historically returns on capital were even higher at 43%, but they have dropped over the last five years. Given the business is employing more capital while revenue has slipped, this is a bit concerning. This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - "less bang for their buck" per se.
In Conclusion...
In summary, we're somewhat concerned by Texas Instruments' diminishing returns on increasing amounts of capital. But investors must be expecting an improvement of sorts because over the last five yearsthe stock has delivered a respectable 98% return. In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.
One final note, you should learn about the 2 warning signs we've spotted with Texas Instruments (including 1 which is concerning) .
If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning high returns on equity.
如果你在尋找下一款多袋裝機時不確定從哪裏開始,那麼你應該注意一些關鍵趨勢。首先,我們希望確定不斷增長的已動用資本回報率(ROCE),然後確定不斷增加的資本使用基礎。簡而言之,這些類型的企業是複合機器,這意味着他們不斷以更高的回報率對收益進行再投資。話雖如此,儘管德州儀器(納斯達克股票代碼:TXN)目前的投資回報率很高,但我們並不是因爲回報率下降而跳出困境。
資本使用回報率(ROCE):這是什麼?
如果你以前沒有與ROCE合作過,它會衡量公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。分析師使用以下公式來計算德州儀器:
已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)
0.21 = 65億美元 ÷(350億美元至36億美元)(基於截至2024年3月的過去十二個月)。
因此,德州儀器的投資回報率爲21%。這是一個了不起的回報,不僅如此,它還超過了類似行業公司9.7%的平均收入。
NASDAQGS: TXN 2024年7月13日動用資本回報率
在上圖中,我們將德州儀器先前的投資回報率與之前的表現進行了對比,但可以說,未來更爲重要。如果您想了解分析師對未來的預測,則應查看我們的德州儀器免費分析師報告。
我們可以從德州儀器的投資回報率趨勢中得出什麼?
就德州儀器的歷史ROCE走勢而言,這一趨勢並不理想。從歷史上看,資本回報率甚至更高,爲43%,但在過去五年中有所下降。鑑於該企業在收入下滑的情況下僱用了更多的資本,這有點令人擔憂。這可能意味着該企業正在失去其競爭優勢或市場份額,因爲儘管向風險投資投入了更多資金,但實際上產生的回報卻較低——本身 “性價比更低”。
總之...
總而言之,我們對德州儀器(Texas Instruments)因資本增加而產生的回報減少感到擔憂。但是投資者一定會期待某種程度的改善,因爲在過去五年中,該股的回報率爲98%。無論如何,當前的潛在趨勢對長期表現來說並不是一個好兆頭,因此,除非趨勢逆轉,否則我們將開始將目光投向其他地方。
最後一點是,你應該了解我們在德州儀器上發現的兩個警告信號(包括一個令人擔憂的警告)。
如果你想搜索更多獲得高回報的股票,可以查看這份資產負債表穩健且淨資產回報率也很高的股票的免費清單。