Return Trends At Gentherm (NASDAQ:THRM) Aren't Appealing

Return Trends At Gentherm (NASDAQ:THRM) Aren't Appealing

Simply Wall St ·  04/11 23:09

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. With that in mind, the ROCE of Gentherm (NASDAQ:THRM) looks decent, right now, so lets see what the trend of returns can tell us.

如果你正在尋找一款多功能裝袋機,有幾件事需要注意。一種常見的方法是嘗試找一家公司 回報 論資本使用率(ROCE)在增加的同時增長 金額 所用資本的比例。簡而言之,這些類型的企業是複合機器,這意味着他們不斷以更高的回報率對收益進行再投資。考慮到這一點,Gentherm(納斯達克股票代碼:THRM)的投資回報率目前看起來不錯,所以讓我們看看回報趨勢能告訴我們什麼。

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. Analysts use this formula to calculate it for Gentherm:

如果你以前沒有與ROCE合作過,它會衡量公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。分析師使用這個公式來計算 Gentherm 的值:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)

0.11 = US$102m ÷ (US$1.2b - US$325m) (Based on the trailing twelve months to December 2023).

0.11 = 1.02 億美元 ÷(12 億美元-3.25 億美元) (基於截至2023年12月的過去十二個月)

Thus, Gentherm has an ROCE of 11%. By itself that's a normal return on capital and it's in line with the industry's average returns of 11%.

因此,Gentherm 的投資回報率爲 11%。這本身就是正常的資本回報率,與該行業11%的平均回報率一致。

NasdaqGS:THRM Return on Capital Employed April 11th 2024
納斯達克GS:THRM 2024年4月11日動用資本回報率

Above you can see how the current ROCE for Gentherm 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 Gentherm .


The Trend Of ROCE

ROCE 的趨勢

While the returns on capital are good, they haven't moved much. The company has employed 45% more capital in the last five years, and the returns on that capital have remained stable at 11%. 11% is a pretty standard return, and it provides some comfort knowing that Gentherm has consistently earned this amount. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders.


The Bottom Line On Gentherm's ROCE

Gentherm 投資回報率的底線

In the end, Gentherm has proven its ability to adequately reinvest capital at good rates of return. In light of this, the stock has only gained 23% over the last five years for shareholders who have owned the stock in this period. So to determine if Gentherm is a multi-bagger going forward, we'd suggest digging deeper into the company's other fundamentals.


On a separate note, we've found 1 warning sign for Gentherm you'll probably want to know about.

另一方面,我們發現了 Gentherm 的 1 個警告信號,你可能想知道。

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.


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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.

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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。