To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. With that in mind, we've noticed some promising trends at Delong Composite Energy Group (SZSE:000593) so let's look a bit deeper.
Understanding Return On Capital Employed (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Delong Composite Energy Group, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.076 = CN¥115m ÷ (CN¥2.1b - CN¥569m) (Based on the trailing twelve months to June 2022).
Therefore, Delong Composite Energy Group has an ROCE of 7.6%. Ultimately, that's a low return and it under-performs the Gas Utilities industry average of 10.0%.
See our latest analysis for Delong Composite Energy Group
![roce](https://usnewsfile.futunn.com/pic/0-15946858-0-915a8ce73d6044d3e7eb9f4f508a59ad.png/big)
SZSE:000593 Return on Capital Employed October 25th 2022
Historical performance is a great place to start when researching a stock so above you can see the gauge for Delong Composite Energy Group's ROCE against it's prior returns. If you're interested in investigating Delong Composite Energy Group's past further, check out this free graph of past earnings, revenue and cash flow.
What Does the ROCE Trend For Delong Composite Energy Group Tell Us?
Delong Composite Energy Group's ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 265% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects.
On a side note, we noticed that the improvement in ROCE appears to be partly fueled by an increase in current liabilities. Essentially the business now has suppliers or short-term creditors funding about 27% of its operations, which isn't ideal. Keep an eye out for future increases because when the ratio of current liabilities to total assets gets particularly high, this can introduce some new risks for the business.
The Key Takeaway
To sum it up, Delong Composite Energy Group is collecting higher returns from the same amount of capital, and that's impressive. Astute investors may have an opportunity here because the stock has declined 23% in the last five years. So researching this company further and determining whether or not these trends will continue seems justified.
On a final note, we've found 1 warning sign for Delong Composite Energy Group that we think you should be aware of.
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.
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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.
要找到一隻多袋股票,我們應該在一家企業中尋找什麼潛在趨勢?首先,我們希望看到一個經過驗證的退貨關於已使用資本(ROCE)的增長,其次是擴張基地已動用資本的比例。歸根結底,這表明它是一家正在以越來越高的回報率對利潤進行再投資的企業。考慮到這一點,我們在以下方面注意到一些有希望的趨勢德隆綜合能源集團(SZSE:000593)讓我們看得更深一點。
瞭解資本回報率(ROCE)
如果您不確定,只需澄清一下,ROCE是一種評估公司投資於其業務的資本獲得多少税前收入(按百分比計算)的指標。要計算德隆綜合能源集團的這一指標,公式如下:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.076=CN元1.15億?(CN元21億-CN元5.69億)(根據截至2022年6月的往績12個月計算).
所以呢,德隆綜合能源集團的淨資產收益率為7.6%。歸根結底,這是一個很低的回報率,而且它的表現低於天然氣公用事業行業10.0%的平均水平。
查看我們對德龍複合能源集團的最新分析
![roce](https://usnewsfile.futunn.com/pic/0-15946858-0-915a8ce73d6044d3e7eb9f4f508a59ad.png/big)
深圳證交所:2022年10月25日資本回報率000593
當研究一隻股票時,歷史表現是一個很好的起點,因為在歷史表現上方,你可以看到德龍綜合能源集團的ROCE相對於它之前的回報的衡量標準。如果你有興趣進一步調查德龍綜合能源集團的過去,請查看以下內容免費過去收益、收入和現金流的圖表。
德龍複合能源集團的ROCE走勢告訴了我們什麼?
德隆綜合能源集團的ROCE增長令人印象深刻。更具體地説,儘管該公司在過去五年中使用的資本相對持平,但同期ROCE卻攀升了265%。因此,由於所用資本沒有太大變化,該公司現在很可能正在從過去的投資中獲得全部好處。從這個意義上講,該公司的表現很好,值得研究一下管理團隊對長期增長前景的規劃。
另外,我們注意到ROCE的改善似乎部分是由流動負債的增加推動的。基本上,該公司現在有供應商或短期債權人為其約27%的業務提供資金,這並不理想。密切關注未來的增長,因為當流動負債與總資產的比率變得特別高時,這可能會給業務帶來一些新的風險。
關鍵的外賣
綜上所述,德龍綜合能源集團正在從相同的資本中獲得更高的回報,這是令人印象深刻的。精明的投資者可能在這裏有機會,因為該股在過去五年裏下跌了23%。因此,進一步研究這家公司,並確定這些趨勢是否會繼續下去似乎是合理的。
最後一點,我們發現德龍複合能源集團的1個警示標誌我們認為你應該意識到。
對於那些喜歡投資於穩固的公司,看看這個免費資產負債表穩健、股本回報率高的公司名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。