Latest news with #TradeDistributors
Yahoo
7 days ago
- Business
- Yahoo
Returns Are Gaining Momentum At Doman Building Materials Group (TSE:DBM)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? 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. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at Doman Building Materials Group (TSE:DBM) and its trend of ROCE, we really liked what we saw. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. What Is Return On Capital Employed (ROCE)? 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 Doman Building Materials Group is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.069 = CA$136m ÷ (CA$2.2b - CA$233m) (Based on the trailing twelve months to March 2025). Therefore, Doman Building Materials Group has an ROCE of 6.9%. Ultimately, that's a low return and it under-performs the Trade Distributors industry average of 10%. Check out our latest analysis for Doman Building Materials Group In the above chart we have measured Doman Building Materials Group'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 Doman Building Materials Group for free. What Can We Tell From Doman Building Materials Group's ROCE Trend? Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 6.9%. Basically the business is earning more per dollar of capital invested and in addition to that, 130% more capital is being employed now too. So we're very much inspired by what we're seeing at Doman Building Materials Group thanks to its ability to profitably reinvest capital. Our Take On Doman Building Materials Group's ROCE In summary, it's great to see that Doman Building Materials Group can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 87% return over the last five years. In light of that, we think it's worth looking further into this stock because if Doman Building Materials Group can keep these trends up, it could have a bright future ahead. Doman Building Materials Group does come with some risks though, we found 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored... While Doman Building Materials Group 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. 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.
Yahoo
26-07-2025
- Business
- Yahoo
Ashtead Group Full Year 2025 Earnings: Revenues Disappoint
Ashtead Group (LON:AHT) Full Year 2025 Results Key Financial Results Revenue: US$10.8b (flat on FY 2024). Net income: US$1.51b (down 5.5% from FY 2024). Profit margin: 14% (in line with FY 2024). EPS: US$3.47 (down from US$3.66 in FY 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Ashtead Group Revenues Disappoint Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) was mostly in line with analyst estimates. The primary driver behind last 12 months revenue was the North America - General Tool segment contributing a total revenue of US$6.40b (59% of total revenue). Explore how AHT's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Trade Distributors industry in the United Kingdom. Performance of the British Trade Distributors industry. The company's shares are up 6.6% from a week ago. Risk Analysis Before we wrap up, we've discovered 1 warning sign for Ashtead Group that you should be aware of. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Business
- Yahoo
Returns On Capital At SCC Holdings Berhad (KLSE:SCC) Paint A Concerning Picture
When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in trouble. More often than not, we'll see a declining return on capital employed (ROCE) and a declining amount of capital employed. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. And from a first read, things don't look too good at SCC Holdings Berhad (KLSE:SCC), so let's see why. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Understanding Return On Capital Employed (ROCE) For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for SCC Holdings Berhad, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.024 = RM1.2m ÷ (RM54m - RM4.9m) (Based on the trailing twelve months to March 2025). So, SCC Holdings Berhad has an ROCE of 2.4%. In absolute terms, that's a low return and it also under-performs the Trade Distributors industry average of 11%. Check out our latest analysis for SCC Holdings Berhad Historical performance is a great place to start when researching a stock so above you can see the gauge for SCC Holdings Berhad's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of SCC Holdings Berhad. What The Trend Of ROCE Can Tell Us In terms of SCC Holdings Berhad's historical ROCE movements, the trend doesn't inspire confidence. Unfortunately the returns on capital have diminished from the 15% that they were earning five years ago. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Companies that exhibit these attributes tend to not be shrinking, but they can be mature and facing pressure on their margins from competition. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on SCC Holdings Berhad becoming one if things continue as they have. The Bottom Line All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. Long term shareholders who've owned the stock over the last five years have experienced a 36% depreciation in their investment, so it appears the market might not like these trends either. Unless there is a shift to a more positive trajectory in these metrics, we would look elsewhere. One more thing to note, we've identified 4 warning signs with SCC Holdings Berhad and understanding them should be part of your investment process. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
Speedy Hire Full Year 2025 Earnings: Misses Expectations
Speedy Hire (LON:SDY) Full Year 2025 Results Key Financial Results Revenue: UK£416.6m (down 1.2% from FY 2024). Net loss: UK£1.10m (down by 141% from UK£2.70m profit in FY 2024). UK£0.002 loss per share (down from UK£0.006 profit in FY 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Speedy Hire Revenues and Earnings Miss Expectations Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) was also behind analyst expectations. Looking ahead, revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Trade Distributors industry in the United Kingdom. Performance of the British Trade Distributors industry. The company's shares are up 2.4% from a week ago. Risk Analysis It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Speedy Hire (at least 1 which is potentially serious), and understanding them should be part of your investment process. 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.
Yahoo
20-07-2025
- Business
- Yahoo
Rush Enterprises (NASDAQ:RUSH.A) Might Have The Makings Of A Multi-Bagger
To find a multi-bagger stock, what are the underlying trends we should look for in a business? 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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, we've noticed some promising trends at Rush Enterprises (NASDAQ:RUSH.A) so let's look a bit deeper. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. What Is Return On Capital Employed (ROCE)? For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Rush Enterprises: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = US$449m ÷ (US$4.7b - US$1.7b) (Based on the trailing twelve months to March 2025). Thus, Rush Enterprises has an ROCE of 15%. On its own, that's a standard return, however it's much better than the 11% generated by the Trade Distributors industry. See our latest analysis for Rush Enterprises In the above chart we have measured Rush Enterprises' 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 Rush Enterprises . The Trend Of ROCE Rush Enterprises is displaying some positive trends. Over the last five years, returns on capital employed have risen substantially to 15%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 58%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. What We Can Learn From Rush Enterprises' ROCE All in all, it's terrific to see that Rush Enterprises is reaping the rewards from prior investments and is growing its capital base. Since the stock has returned a staggering 154% to shareholders over the last five years, it looks like investors are recognizing these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. On a separate note, we've found 1 warning sign for Rush Enterprises you'll probably want to know about. 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
