Latest news with #ITIndustry
Yahoo
7 hours ago
- Business
- Yahoo
Here's What Computacenter's (LON:CCC) Strong Returns On Capital Mean
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount 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. Ergo, when we looked at the ROCE trends at Computacenter (LON:CCC), we liked what we saw. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. 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. To calculate this metric for Computacenter, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.25 = UK£236m ÷ (UK£3.4b - UK£2.4b) (Based on the trailing twelve months to December 2024). Therefore, Computacenter has an ROCE of 25%. While that is an outstanding return, the rest of the IT industry generates similar returns, on average. View our latest analysis for Computacenter In the above chart we have measured Computacenter's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Computacenter . It's hard not to be impressed by Computacenter's returns on capital. The company has consistently earned 25% for the last five years, and the capital employed within the business has risen 45% in that time. Returns like this are the envy of most businesses and given it has repeatedly reinvested at these rates, that's even better. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger. Another thing to note, Computacenter has a high ratio of current liabilities to total assets of 72%. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. In summary, we're delighted to see that Computacenter has been compounding returns by reinvesting at consistently high rates of return, as these are common traits of a multi-bagger. And since the stock has risen strongly over the last five years, it appears the market might expect this trend to continue. So while investors seem to be recognizing these promising trends, we still believe the stock deserves further research. One more thing to note, we've identified 2 warning signs with Computacenter and understanding them should be part of your investment process. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Forbes
13-06-2025
- Business
- Forbes
StarTech's New Thunderbolt 5 Cables Will Ready Your For High-Speed Connectivity
Then latest Thunderbolt 5 interface offers double the bandwidth of Thunderbolt 4 and even has a ... More burst mode of 120Gbps for hi-res screen work. StarTech, a leading maker of high-performance connectivity accessories for the IT industry, has just launched a range of Thunderbolt 5 cables in a selection of lengths. Cables may not be the most exciting bit of kit but they are not all created equal and that's certainly true when it comes to Thunderbolt 5, the latest standard for the high-speed interface that looks as if it's a USB-C cable. These new StarTech cables are designed exclusively to work with high-performance Thunderbolt 5 devices and are available in lengths of 1.5ft, 2.6ft and 3ft. These next-generation cables can handle the blistering data speeds and higher voltages used by the new Thunderbolt 5 protocol. Considering their capabilities, the new Thunderbolt 5 cables from StarTech are reasonably priced and ... More a way to leverage those Thunderbolt 5 ports on Apple's Mac mini M4 Pro. One of the first devices to use Thunderbolt 5 is the Apple Mac mini M4 Pro computer. This pocket-sized powerhouse comes with three Thunderbolt 5 ports to deliver best-in-class connectivity. 'Thunderbolt 5 represents a major leap forward in connectivity – allowing twice the data transfer of Thunderbolt 4 and is futureproof ready for charging and video capabilities for resource-intensive workloads,' says John Mardinly, manager, of product performance at 'Our customers consistently emphasize the importance of future-proofing their infrastructure. That's why we are introducing our Thunderbolt 5 cables to deliver maximum performance, full backward compatibility, and seamless integration with both current and next-generation devices.' Thunderbolt 5 will grow in popularity as more laptop and computer makers adopt the standard. It ... More offers much more bandwidth and the ability to carry up to 240W. The new StarTech cables will work with some previous versions of USB-C and Thunderbolt ports and devices but Thunderbolt 5 has a boost mode of 120Gbps with the ability to carry video signals for two 8K 60Hz displays or three 4K screens with a refresh rate of 144Hz, suitable for high-end gamers. Thunderbolt 5 can handle data speeds up to 80Gbps which is twice the speed of Thunderbolt 4. When it comes to power, the StarTech Thunderbolt 5 range can handle 240W EPR charging for running high-performance devices. There is minimum host device support for PCIe at 64 Gbps and, of course, full backward compatibility with USB4 and Thunderbolt 4/3 devices. While the market isn't exactly crowded with Thunderbolt 5 devices, as adoption grows, StarTech says it will be expanding its line of connectivity accessories. This includes docking stations that are built to take full advantage of Thunderbolt 5's advanced performance capabilities. StarTech's Thunderbolt 5 cables are available now from and through leading global IT resellers and distributors including CDW, Amazon, Ingram Micro, TD SYNNEX, and D&H. Prices start at $39.99 and increase with length.
Yahoo
17-05-2025
- Business
- Yahoo
Returns At CGI (TSE:GIB.A) Appear To Be Weighed Down
If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. That's why when we briefly looked at CGI's (TSE:GIB.A) ROCE trend, we were pretty happy with what we saw. We check all companies for important risks. See what we found for CGI in our free report. 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. The formula for this calculation on CGI is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.17 = CA$2.5b ÷ (CA$19b - CA$3.7b) (Based on the trailing twelve months to March 2025). Thus, CGI has an ROCE of 17%. On its own, that's a standard return, however it's much better than the 9.4% generated by the IT industry. View our latest analysis for CGI In the above chart we have measured CGI's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering CGI for free. While the current returns on capital are decent, they haven't changed much. The company has consistently earned 17% for the last five years, and the capital employed within the business has risen 35% in that time. Since 17% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. In the end, CGI has proven its ability to adequately reinvest capital at good rates of return. Therefore it's no surprise that shareholders have earned a respectable 74% return if they held over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research. If you're still interested in CGI it's worth checking out our to see if it's trading at an attractive price in other respects. 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
