Here's What To Make Of Select Water Solutions' (NYSE:WTTR) Decelerating Rates Of Return
Here's What To Make Of Select Water Solutions' (NYSE:WTTR) Decelerating Rates Of Return
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, 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. Having said that, from a first glance at Select Water Solutions (NYSE:WTTR) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
你知道有些財務指標可以提供潛在多倍的線索嗎？通常情況下，我們會注意到資本僱用回報率（ROCE）的增長趨勢，以及資本僱用的擴大。基本上這意味着一家公司有盈利的舉措可以繼續投資，這是一個複利機器的特點。儘管如此，我們對Select Water Solutions（紐交所：WTTR）的回報趨勢並不樂觀，但讓我們深入了解一下。
Return On Capital Employed (ROCE): What Is It?
資本僱用回報率（ROCE）是什麼？
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Select Water Solutions is:
如果您之前沒有使用過ROCE，它衡量了一家公司從其業務中資本僱用所獲得的「回報」（稅前利潤）。這個計算公式在Select Water Solutions上是：
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。
0.054 = US$60m ÷ (US$1.3b - US$213m) (Based on the trailing twelve months to June 2024).
0.054 = 6000萬美元 ÷ （13億美元 - 2.13億美元）（截至2024年6月的過去十二個月）。
Thus, Select Water Solutions has an ROCE of 5.4%. In absolute terms, that's a low return and it also under-performs the Energy Services industry average of 11%.
因此，Select Water Solutions的ROCE爲5.4%。從絕對值上看，這是一個較低的回報率，也低於能源服務行業的平均水平11%。
Above you can see how the current ROCE for Select Water Solutions 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 Select Water Solutions .
從上圖可以看出，Select Water Solutions的當前ROCE與其過去的資本回報相比，但過去的情況能夠告訴我們的信息有限。如果您感興趣，您可以查看我們爲Select Water Solutions提供的免費分析師報告中的分析師預測。
What Does the ROCE Trend For Select Water Solutions Tell Us?
Select Water Solutions的ROCE趨勢告訴我們什麼？
There hasn't been much to report for Select Water Solutions' returns and its level of capital employed because both metrics have been steady for the past five years. This tells us the company isn't reinvesting in itself, so it's plausible that it's past the growth phase. With that in mind, unless investment picks up again in the future, we wouldn't expect Select Water Solutions to be a multi-bagger going forward.
在過去的五年裏，Select Water Solutions的回報和資本使用水平都保持穩定，這意味着該公司沒有對自身進行再投資，因此很可能已經過了增長階段。考慮到這一點，除非未來的投資再次增加，我們不會期望Select Water Solutions未來會是一個多倍市值股票。
The Bottom Line
還有一件事需要注意的是，我們已經確定了上海醫藥的2個警告信號，了解這些信號應該成爲你的投資過程的一部分。
In summary, Select Water Solutions isn't compounding its earnings but is generating stable returns on the same amount of capital employed. Although the market must be expecting these trends to improve because the stock has gained 49% over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward.
總的來說，Select Water Solutions沒有在利潤上進行復利運作，但是在相同的資本使用量上產生穩定回報。儘管市場可能預計這些趨勢會有所改善，因爲該股在過去的五年中上漲了49%。但是，最終，如果這些趨勢持續存在，我們不會對它成爲一個多倍市值股票抱有太大期望。
Select Water Solutions does have some risks though, and we've spotted 2 warning signs for Select Water Solutions that you might be interested in.
然而，Select Water Solutions確實存在一些風險，我們已經發現了2個值得關注的警告信號，您可能會感興趣。
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
Hao Tian International Construction Investment Group確實存在一些風險，我們已經發現了一條警示標誌，你可能會感興趣。對於那些喜歡投資於實力雄厚的公司的人，可以查看這個由財務狀況強大、股本回報率高的公司組成的免費列表。
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.
對本文有任何反饋？對內容有任何疑慮？請直接與我們聯繫。或者，發送電子郵件至editorial-team@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。