Slowing Rates Of Return At Centene (NYSE:CNC) Leave Little Room For Excitement
Slowing Rates Of Return At Centene (NYSE:CNC) Leave Little Room For Excitement
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'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. However, after briefly looking over the numbers, we don't think Centene (NYSE:CNC) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
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,我們希望看到經過驗證的資本回報率(ROCE)不斷增加,其次,動用資本基礎的擴大。基本上,這意味着公司擁有可以繼續進行再投資的盈利計劃,這是複合機器的特徵。但是,在簡短地查看了這些數字之後,我們認爲Centene(紐約證券交易所代碼:CNC)在未來不具備多裝袋機的實力,但讓我們來看看爲什麼會這樣。
Understanding Return On Capital Employed (ROCE)
了解資本使用回報率 (ROCE)
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 Centene:
對於那些不確定ROCE是什麼的人,它衡量的是公司從其業務中使用的資本中可以產生的稅前利潤金額。分析師使用這個公式來計算 Centene 的值:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)
0.10 = US$5.0b ÷ (US$83b - US$33b) (Based on the trailing twelve months to June 2024).
0.10 = 50億美元 ÷(830億美元至330億美元)(基於截至2024年6月的過去十二個月)。
So, Centene has an ROCE of 10.0%. In absolute terms, that's a low return but it's around the Healthcare industry average of 11%.
因此,Centene的投資回報率爲10.0%。從絕對值來看,回報率很低,但約爲醫療保健行業的平均水平11%。
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Above you can see how the current ROCE for Centene 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 Centene .
上面你可以看到Centene當前的投資回報率與其先前的資本回報率相比如何,但從過去可以看出來的只有那麼多。如果您有興趣,可以在我們的Centene免費分析師報告中查看分析師的預測。
What Can We Tell From Centene's ROCE Trend?
我們可以從Centene的投資回報率趨勢中得出什麼?
In terms of Centene's historical ROCE trend, it doesn't exactly demand attention. Over the past five years, ROCE has remained relatively flat at around 10.0% and the business has deployed 132% more capital into its operations. This poor ROCE doesn't inspire confidence right now, and with the increase in capital employed, it's evident that the business isn't deploying the funds into high return investments.
就Centene的歷史投資回報率趨勢而言,它並不完全值得關注。在過去五年中,投資回報率一直相對持平,約爲10.0%,該業務在運營中投入的資金增加了132%。這種糟糕的投資回報率目前並不能激發信心,隨着所用資本的增加,很明顯,該企業沒有將資金部署到高回報的投資中。
In Conclusion...
總之...
Long story short, while Centene has been reinvesting its capital, the returns that it's generating haven't increased. Since the stock has gained an impressive 75% over the last five years, investors must think there's better things to come. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.
長話短說,儘管Centene一直在對其資本進行再投資,但其產生的回報並沒有增加。由於該股在過去五年中上漲了令人印象深刻的75%,因此投資者必須認爲會有更好的事情發生。歸根結底,如果潛在的趨勢持續下去,我們就不會屏住呼吸了,因爲它是未來的 「多管齊下」。
If you're still interested in Centene it's worth checking out our FREE intrinsic value approximation for CNC to see if it's trading at an attractive price in other respects.
如果您仍然對Centene感興趣,值得查看我們的免費CNC內在價值近似值,看看它在其他方面的交易價格是否具有吸引力。
While Centene 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.
儘管Centene目前可能無法獲得最高的回報,但我們編制了一份目前股本回報率超過25%的公司名單。在這裏查看這個免費清單。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。