Algoma Steel Group (NASDAQ:ASTL) Could Be Struggling To Allocate Capital
Algoma Steel Group (NASDAQ:ASTL) Could Be Struggling To Allocate Capital
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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Having said that, from a first glance at Algoma Steel Group (NASDAQ:ASTL) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.
如果你不確定在尋找下一個多倍行情時從何處開始，那麼有一些關鍵趨勢你應該留意。首先，我們希望確定資本僱用回報率（ROCE）的增長，然後再加上不斷增長的資本僱用基礎。這表明它是一個複合機器，能夠不斷地將其盈利重新投入企業併產生更高的回報。儘管如此，我們對Algoma鋼鐵集團（納斯達克:ASTL）的回報率走勢並不滿意，但讓我們更深入地探究一下。
Return On Capital Employed (ROCE): What Is It?
資本僱用回報率（ROCE）是什麼？
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 Algoma Steel Group, this is the formula:
只是爲了澄清，如果你不確定，ROCE是一個評估公司在其業務中投資的資本所賺取的稅前收入（按百分比計算）的指標。要爲Algoma鋼鐵集團計算這個指標，使用以下公式：
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。
0.065 = CA$147m ÷ (CA$2.7b - CA$429m) (Based on the trailing twelve months to March 2024).
0.065 = CA$14700萬 ÷ (CA$27億 - CA$429m) （以2024年3月爲截止時間的過去十二個月爲基準）。
Thus, Algoma Steel Group has an ROCE of 6.5%. Ultimately, that's a low return and it under-performs the Metals and Mining industry average of 8.8%.
因此，Algoma鋼鐵集團的ROCE爲6.5%。總體而言，這是一個低迴報率，低於貴金屬和礦業行業板塊平均水平8.8%。
Above you can see how the current ROCE for Algoma Steel Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Algoma Steel Group .
你可以看到Algoma鋼鐵集團的當前ROCE與以前的資本回報率相比較的情況，但從過去只能看出那麼多。如果你想了解分析師對未來的預測，你應該查看我們針對Algoma鋼鐵集團的免費分析師報告。
What Does the ROCE Trend For Algoma Steel Group Tell Us?
Algoma鋼鐵集團的ROCE趨勢告訴我們什麼？
In terms of Algoma Steel Group's historical ROCE movements, the trend isn't fantastic. Around five years ago the returns on capital were 24%, but since then they've fallen to 6.5%. However it looks like Algoma Steel Group might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It may take some time before the company starts to see any change in earnings from these investments.
就Algoma鋼鐵集團的歷史ROCE走勢而言，這種趨勢並不理想。大約五年前資本回報率是24%，但自那以後下降到6.5%。然而，看起來Algoma鋼鐵集團可能會持續爲長期增長而重新投資，因爲儘管資本僱用增加了，但公司的銷售額在過去12個月內並沒有太大變化。這可能需要一些時間，直到公司開始看到這些投資的收益變化。
On a related note, Algoma Steel Group has decreased its current liabilities to 16% of total assets. That could partly explain why the ROCE has dropped. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
另外，Algoma鋼鐵集團已經將其流動負債降低到總資產的16%。這可能在一定程度上解釋了ROCE的下降。此外，這可以減少公司的一些風險方面，因爲現在公司的供應商或短期債權人承擔了其運營的一部分資金。一些人可能會認爲，這降低了企業產生ROCE的效率，因爲現在它正在用自己的資金資助更多的運營。
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。
To conclude, we've found that Algoma Steel Group is reinvesting in the business, but returns have been falling. Additionally, the stock's total return to shareholders over the last three years has been flat, which isn't too surprising. In any case, the stock doesn't have these traits of a multi-bagger discussed above, so if that's what you're looking for, we think you'd have more luck elsewhere.
總之，我們發現Algoma鋼鐵集團正在對企業進行重新投資，但回報率下降。此外，股票在過去三年裏的總回報率相對平穩，這並不令人驚訝。無論如何，該股票沒有以上討論的多倍行情特質，因此如果你正在尋找這樣的投資，我們認爲你在別的地方會更加成功。
Since virtually every company faces some risks, it's worth knowing what they are, and we've spotted 3 warning signs for Algoma Steel Group (of which 1 is potentially serious!) that you should know about.
由於幾乎每個公司都面臨一些風險，因此了解這些風險是值得的。我們發現了Algoma鋼鐵集團的3個警告信號（其中1個可能是嚴重的！），你應該知道。
While Algoma Steel Group isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.
雖然Algoma鋼鐵集團的回報率不是最高的，但是，查看這個高股權回報率的公司及其紮實的資產負債表的免費名單。
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。