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Yahoo
21 hours ago
- Business
- Yahoo
Investors Could Be Concerned With Metrofile Holdings' (JSE:MFL) Returns On Capital
To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications of aging. Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. This combination can tell you that not only is the company investing less, it's earning less on what it does invest. And from a first read, things don't look too good at Metrofile Holdings (JSE:MFL), so let's see why. 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 Metrofile Holdings, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = R188m ÷ (R1.5b - R216m) (Based on the trailing twelve months to December 2024). Therefore, Metrofile Holdings has an ROCE of 15%. In isolation, that's a pretty standard return but against the IT industry average of 39%, it's not as good. Check out our latest analysis for Metrofile Holdings Historical performance is a great place to start when researching a stock so above you can see the gauge for Metrofile Holdings' 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 Metrofile Holdings. In terms of Metrofile Holdings' historical ROCE movements, the trend doesn't inspire confidence. To be more specific, the ROCE was 19% five years ago, but since then it has dropped noticeably. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. If these trends continue, we wouldn't expect Metrofile Holdings to turn into a multi-bagger. In the end, the trend of lower returns on the same amount of capital isn't typically an indication that we're looking at a growth stock. Despite the concerning underlying trends, the stock has actually gained 36% over the last five years, so it might be that the investors are expecting the trends to reverse. Regardless, we don't like the trends as they are and if they persist, we think you might find better investments elsewhere. Metrofile Holdings does have some risks, we noticed 4 warning signs (and 2 which can't be ignored) we think you should know about. 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
2 days ago
- Business
- Yahoo
Trellidor Holdings' (JSE:TRL) Returns Have Hit A Wall
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. 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. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Trellidor Holdings (JSE:TRL), they do have a high ROCE, but we weren't exactly elated from how returns are trending. 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. 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. The formula for this calculation on Trellidor Holdings is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.23 = R71m ÷ (R446m - R133m) (Based on the trailing twelve months to December 2024). Thus, Trellidor Holdings has an ROCE of 23%. On its own, that's a very good return and it's on par with the returns earned by companies in a similar industry. Check out our latest analysis for Trellidor Holdings Historical performance is a great place to start when researching a stock so above you can see the gauge for Trellidor Holdings' 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 Trellidor Holdings. Things have been pretty stable at Trellidor Holdings, with its capital employed and returns on that capital staying somewhat the same for the last five years. It's not uncommon to see this when looking at a mature and stable business that isn't re-investing its earnings because it has likely passed that phase of the business cycle. Although current returns are high, we'd need more evidence of underlying growth for it to look like a multi-bagger going forward. Another point to note, we noticed the company has increased current liabilities over the last five years. This is intriguing because if current liabilities hadn't increased to 30% of total assets, this reported ROCE would probably be less than23% because total capital employed would be 23% ROCE could be even lower if current liabilities weren't 30% of total assets, because the the formula would show a larger base of total capital employed. With that in mind, just be wary if this ratio increases in the future, because if it gets particularly high, this brings with it some new elements of risk. In summary, Trellidor Holdings isn't compounding its earnings but is generating decent returns on the same amount of capital employed. And with the stock having returned a mere 29% in the last five years to shareholders, you could argue that they're aware of these lackluster trends. Therefore, if you're looking for a multi-bagger, we'd propose looking at other options. If you'd like to know about the risks facing Trellidor Holdings, we've discovered 1 warning sign that you should be aware of. If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning 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. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
a2 Milk (NZSE:ATM) May Have Issues Allocating Its Capital
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Having said that, from a first glance at a2 Milk (NZSE:ATM) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look. 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. 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 a2 Milk is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.14 = NZ$202m ÷ (NZ$1.9b - NZ$474m) (Based on the trailing twelve months to December 2024). Therefore, a2 Milk has an ROCE of 14%. On its own, that's a standard return, however it's much better than the 9.6% generated by the Food industry. Check out our latest analysis for a2 Milk In the above chart we have measured a2 Milk'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 a2 Milk . When we looked at the ROCE trend at a2 Milk, we didn't gain much confidence. Around five years ago the returns on capital were 47%, but since then they've fallen to 14%. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. Bringing it all together, while we're somewhat encouraged by a2 Milk's reinvestment in its own business, we're aware that returns are shrinking. And investors appear hesitant that the trends will pick up because the stock has fallen 52% in the last five years. All in all, the inherent trends aren't typical of multi-baggers, so if that's what you're after, we think you might have more luck elsewhere. If you're still interested in a2 Milk it's worth checking out our to see if it's trading at an attractive price in other respects. 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.
Yahoo
3 days ago
- Business
- Yahoo
2025 Chemicals Top 5 Emerging Markets Industry Guide: 2020-2029 Top Players, Key Financial Metrics and Analysis, & Competitive Pressures
Dublin, May 26, 2025 (GLOBE NEWSWIRE) -- The "Chemicals Top 5 Emerging Markets Industry Guide 2020-2029" report has been added to Emerging 5 Chemicals industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume, and forecast to 2029). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the Highlights These countries contributed $2.93 trillion to the global chemicals industry in 2024, with a compound annual growth rate (CAGR) of 11.1% between 2007 and 2011. The top 5 emerging countries are expected to reach a value of $4.11 trillion in 2029, with a CAGR of 7% over the 2024-29 period. Within the chemicals industry, China is the leading country among the top 5 emerging nations, with market revenues of $2.59 trillion in 2024. This was followed by India and Brazil with a value of $152.2 and $129.9 billion, respectively. China is expected to lead the chemicals industry in the top five emerging nations, with a value of $3.71 trillion in 2029, followed by India and Brazil with expected values of $194.1 and $145.5 billion, respectively. Scope Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the emerging five chemicals market Use the Five Forces analysis to determine the competitive intensity and therefore attractiveness of the emerging five chemicals market Leading company profiles reveal details of key chemicals market players' emerging five operations and financial performance Add weight to presentations and pitches by understanding the future growth prospects of the emerging five chemicals market with five year forecasts by both value and volume Compares data from Brazil, China, India, Mexico and South Africa, alongside individual chapters on each country Reasons to Buy What was the size of the emerging five chemicals market by value in 2024? What will be the size of the emerging five chemicals market in 2029? What factors are affecting the strength of competition in the emerging five chemicals market? How has the market performed over the last five years? What are the main segments that make up the emerging five chemicals market? Key Topics Covered: 1 Introduction1.1. What is this report about?1.2. Who is the target reader?1.3. How to use this report1.4. Definitions2 Top 5 Emerging Countries Chemicals2.1. Industry Outlook3 Chemicals in South Africa3.1. Market Overview3.2. Market Data3.3. Market Segmentation3.4. Market outlook3.5. Five forces analysis4 Macroeconomic Indicators4.1. Country data5 Chemicals in Brazil5.1. Market Overview5.2. Market Data5.3. Market Segmentation5.4. Market outlook5.5. Five forces analysis6 Macroeconomic Indicators6.1. Country data7 Chemicals in China7.1. Market Overview7.2. Market Data7.3. Market Segmentation7.4. Market outlook7.5. Five forces analysis8 Macroeconomic Indicators8.1. Country data9 Chemicals in India9.1. Market Overview9.2. Market Data9.3. Market Segmentation9.4. Market outlook9.5. Five forces analysis10 Macroeconomic Indicators10.1. Country data11 Chemicals in Mexico11.1. Market Overview11.2. Market Data11.3. Market Segmentation11.4. Market outlook11.5. Five forces analysis12 Macroeconomic Indicators12.1. Country data13 Company Profiles13.1. LG Chem Ltd13.2. BASF SE13.3. China Petrochemical Corp13.4. Dow Inc13.5. LyondellBasell Industries NV13.6. Mitsui Chemicals Inc13.7. China Petroleum & Chemical Corp13.8. Reliance Industries Ltd13.9. Shell Chemicals Ltd13.10. ExxonMobil Chemical Co13.11. TotalEnergies SE13.12. Arkema SA13.13. Solvay SA13.14. Merck KGaA13.15. Lanxess AG13.16. Evonik Industries AG13.17. Arcadium Lithium PLC13.18. Alpha HPA Ltd13.19. Orica Ltd13.20. Dyno Nobel Ltd13.21. Braskem SA13.22. Nutrien Ltd13.23. Methanex Corp13.24. Nova Chemicals Corp13.25. Wanhua Chemical Group Co Ltd13.26. China National Petroleum Corp13.27. PetroChina Co Ltd13.28. Tata Chemicals Ltd13.29. Gujarat Fluorochemicals Ltd13.30. SRF Ltd13.31. Pidilite Industries Ltd13.32. PT Pupuk Indonesia Holding Co13.33. PT Lautan Luas Tbk13.34. PT Chandra Asri Pacific Tbk13.35. Polynt SpA13.36. Versalis SpA13.37. Mitsubishi Chemical Group Corp13.38. Sumitomo Chemical Co Ltd13.39. Asahi Kasei Corp13.40. Alpek SAB de CV13.41. Nouryon Chemicals Holding BV13.42. DuPont de Nemours Inc13.43. Acron13.44. Sibur Holding13.45. Phosagro13.46. Schelkovo Agrohim JSC13.47. Yara International ASA13.48. Omnia Holdings Ltd13.49. Sasol Ltd13.50. AECI Ltd13.51. SK Innovation Co Ltd13.52. Hanwha Solutions Corp13.53. Lotte Chemical Corp13.54. INEOS Ltd13.55. Sasa Polyester Sanayi AS13.56. Croda International Plc13.57. Johnson Matthey Plc13.58. Victrex Plc For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error 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
3 days ago
- Business
- Yahoo
2025 Real Estate North America (NAFTA) Industry Guide: 2020-2029 Top Players, Key Financial Metrics and Analysis, & Competitive Pressures
Explore the dynamic NAFTA real estate industry with a comprehensive profile featuring industry size, growth forecasts to 2029, and insights on key players. Understand competitive pressures within the U.S., Canada, and Mexico markets. Discover the leading U.S. market's trajectory and Canada's rapid growth. Dublin, May 26, 2025 (GLOBE NEWSWIRE) -- The "Real Estate North America (NAFTA) Industry Guide 2020-2029" report has been added to NAFTA Real Estate industry profile provides top-line qualitative and quantitative summary information including: industry size (value and volume, and forecast to 2029). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the Highlights The North American Free Trade Agreement (NAFTA) is a trade agreement between the countries in North America: the US, Canada and Mexico. The real estate industry within the NAFTA countries had a total market value of $23,71,033.5 million in Canada was the fastest growing country, with a CAGR of 23.2% over the 2020-24 period. Within the real estate industry, the US is the leading country among the NAFTA bloc, with market revenues of $18,56,302.6 million in 2024. This was followed by Canada and Mexico, with a value of $2,57,644.1 and $2,57,086.7 million, respectively. The US is expected to lead the real estate industry in the NAFTA bloc, with a value of $22,95,348.8 million in 2029, followed by Canada and Mexico with expected values of $3,78,334.7 and $3,48,913.1 million, respectively. Scope Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the NAFTA real estate industry Use the Five Forces analysis to determine the competitive intensity and therefore attractiveness of the NAFTA real estate industry Leading company profiles reveal details of key real estate industry players' NAFTA operations and financial performance Add weight to presentations and pitches by understanding the future growth prospects of the NAFTA real estate industry with five year forecasts by both value and volume Compares data from the US, Canada and Mexico, alongside individual chapters on each country Reasons to Buy What was the size of the NAFTA real estate industry by value in 2024? What will be the size of the NAFTA real estate industry in 2029? What factors are affecting the strength of competition in the NAFTA real estate industry? How has the industry performed over the last five years? What are the main segments that make up the NAFTA real estate industry? Key Topics Covered: 1 Introduction1.1. What is this report about?1.2. Who is the target reader?1.3. How to use this report1.4. Definitions2 NAFTA Real Estate2.1. Industry Outlook3 Real Estate in Canada3.1. Market Overview3.2. Market Data3.3. Market Segmentation3.4. Market outlook3.5. Five forces analysis4 Macroeconomic Indicators4.1. Country data5 Real Estate in Mexico5.1. Market Overview5.2. Market Data5.3. Market Segmentation5.4. Market outlook5.5. Five forces analysis6 Macroeconomic Indicators6.1. Country data7 Real Estate in The United States7.1. Market Overview7.2. Market Data7.3. Market Segmentation7.4. Market outlook7.5. Five forces analysis8 Macroeconomic Indicators8.1. Country data9 Company Profiles9.1. Starlight Investments, Ltd.9.2. Boardwalk Real Estate Investment Trust9.3. Killam Apartment Real Estate Investment Trust9.4. Canadian Apartment Properties Real Estate Investment Trust9.5. Fibra Uno Administracion SA de CV9.6. Consorcio ARA SAB de CV9.7. Desarrolladora Homex SAB de CV9.8. Greystar Real Estate Partners LLC9.9. Invitation Homes Inc9.10. Grainger Plc9.11. Mid-America Apartment Communities Inc9.12. American Homes 4 Rent9.13. Equity Residential9.14. Ingenuity Property Investments Ltd9.15. Fortress Real Estate Investments Ltd9.16. Equites Property Fund Ltd9.17. Gafisa SA9.18. Cyrela Brazil Realty SA Empreendimentos e Participacoes9.19. PDG Realty SA Empreendimentos e Participacoes9.20. Dalian Wanda Group9.21. China Vanke Co Ltd9.22. Country Garden Real Estate Group Co., Ltd.9.23. Prestige Estates Projects Ltd9.24. Oberoi Realty Ltd9.25. Housing Development & Infrastructure Ltd9.26. Sobha Ltd9.27. Vonovia SE9.28. CapitaLand Group Pte Ltd9.29. Mitsubishi Estate Co Ltd9.30. Nexity SA9.31. Icade SA9.32. Gecina SA9.33. Immobiliere Dassault9.34. Deutsche Wohnen SE9.35. LEG Immobilien SE9.36. TAG Immobilien AG9.37. Brioschi Sviluppo Immobiliare SpA9.38. Borgosesia SpA9.39. Abitare In SpA9.40. Gabetti Property Solutions S.p.A9.41. Sumitomo Realty & Development Co Ltd9.42. Daiwa House REIT Investment Corp9.43. Sekisui House Ltd9.44. Mitsui Fudosan Co Ltd9.45. Grocon Pty Ltd9.46. Meriton Apartments Pty Ltd.9.47. Mirvac Group9.48. Lendlease Corp Ltd9.49. Bever Holding NV9.50. Wereldhave NV9.51. Brack Capital Properties NV9.52. Metrovacesa SA9.53. Blackstone Capital Partners LP9.54. Servihabitat XXI SAU9.55. Neinor Homes SA9.56. Sigma Capital Group Ltd9.57. London and Quadrant Housing Trust9.58. Quintain Ltd For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error 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
