Here's What To Make Of American Electric Power Company's (NASDAQ:AEP) Decelerating Rates Of Return
Here's What To Make Of American Electric Power Company's (NASDAQ:AEP) Decelerating Rates Of Return
What are the early trends we should look for to identify a stock that could 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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. In light of that, when we looked at American Electric Power Company (NASDAQ:AEP) and its ROCE trend, we weren't exactly thrilled.
如何識別長期可增值的股票？通常，我們要注意ROI和資本使用率持續增長的趨勢。簡單來說，這些企業是複合機器，意味着他們不斷地以越來越高的回報率重新投資他們的收益。鑑於此，當我們看美國電力業務（納斯達克股票編號：AEP）及其ROI趨勢時，並不感到特別滿意。
Return On Capital Employed (ROCE): What Is It?
資本僱用回報率（ROCE）是什麼？
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. Analysts use this formula to calculate it for American Electric Power Company:
如不了解ROI，它是公司每年稅前利潤（回報率）與企業所使用的資本相對應的測量指標。分析師使用這個公式來爲美國電力業務計算它：
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。
0.05 = US$4.3b ÷ (US$98b - US$11b) (Based on the trailing twelve months to March 2024).
0.05 = 430億美元 ÷ （980億美元 - 110億美元） （基於2024年3月的最近十二個月）。
Therefore, American Electric Power Company has an ROCE of 5.0%. On its own that's a low return on capital but it's in line with the industry's average returns of 4.8%.
因此，美國電力業務的ROCE爲5.0％。單獨看這一數字，這是一個低迴報率，但與行業平均回報率4.8％持平。
Above you can see how the current ROCE for American Electric Power Company compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for American Electric Power Company .
什麼可以從美國電力公司的ROI趨勢看出來？在近幾年中，美國電力業務的資本回報率並沒有顯著變化。過去五年中，該公司的資本使用增加了38％，但該資本的回報率仍然穩定在5.0％。考慮到公司增加了使用的資本量，似乎這些投資不能提供高回報率。
What Can We Tell From American Electric Power Company's ROCE Trend?
總結一下，美國電力業務一直在重新投資資本並以與以往同樣的低迴報率進行投資。因此，該股僅在過去五年中上漲了21％，這可能表明投資者正在考慮這一問題。因此，如果您正在尋找多倍收益的投資，我們建議您查看其他行業板塊。
The returns on capital haven't changed much for American Electric Power Company in recent years. The company has employed 38% more capital in the last five years, and the returns on that capital have remained stable at 5.0%. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital.
由於幾乎每家公司都面臨一定的風險，了解這些風險也值得一提。我們已經發現了美國電力公司的3個風險警示（其中1個有點不愉快！）非常值得關注。
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。
In summary, American Electric Power Company has simply been reinvesting capital and generating the same low rate of return as before. Unsurprisingly, the stock has only gained 21% 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，美國電力公司僅是將資金再投資，並以與以前相同的低迴報率獲利。並不奇怪的是，該股在過去五年中僅上漲了21％，這可能表明投資者會在未來考慮這一點。因此，如果您正在尋找大賺錢的機會，我們建議看看其他期權。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for American Electric Power Company (of which 1 is a bit unpleasant!) that you should know about.
如果您想要識別能夠在長期保增值的股票，請密切關注以下幾個趨勢。一般而言，我們需要注意的是資本使用率不斷增長的趨勢以及ROCE不斷增長的趨勢。簡而言之，這些類型的企業是複合機器，這意味着它們會以越來越高的回報率不斷地重新投資其收益。 因此，當我們查看美國電力公司（納斯達克股票編號：AEP）以及其ROCE趨勢時，並不感到非常滿意。如果您不知道ROCE是什麼，請務必仔細閱讀本文。但關鍵信息在接下來的段落中。
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？對內容感到擔憂？請直接與我們聯繫。或者，發送電子郵件至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？對內容感到擔憂？請直接與我們聯繫。或者，發送電子郵件至editorial-team@simplywallst.com。