We Like These Underlying Return On Capital Trends At STAAR Surgical (NASDAQ:STAA)
We Like These Underlying Return On Capital Trends At STAAR Surgical (NASDAQ:STAA)
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. Speaking of which, we noticed some great changes in STAAR Surgical's (NASDAQ:STAA) returns on capital, so let's have a look.
Return On Capital Employed (ROCE): What Is It?
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 STAAR Surgical is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.13 = US$44m ÷ (US$376m - US$47m) (Based on the trailing twelve months to July 2022).
Therefore, STAAR Surgical has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Medical Equipment industry average of 9.2% it's much better.
View our latest analysis for STAAR Surgical
NasdaqGM:STAA Return on Capital Employed September 12th 2022In the above chart we have measured STAAR Surgical's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free report for STAAR Surgical.
What Can We Tell From STAAR Surgical's ROCE Trend?
We're delighted to see that STAAR Surgical is reaping rewards from its investments and is now generating some pre-tax profits. About five years ago the company was generating losses but things have turned around because it's now earning 13% on its capital. Not only that, but the company is utilizing 637% more capital than before, but that's to be expected from a company trying to break into profitability. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, both common traits of a multi-bagger.
One more thing to note, STAAR Surgical has decreased current liabilities to 12% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. So shareholders would be pleased that the growth in returns has mostly come from underlying business performance.
The Bottom Line On STAAR Surgical's ROCE
Long story short, we're delighted to see that STAAR Surgical's reinvestment activities have paid off and the company is now profitable. Since the stock has returned a staggering 764% 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 STAAR Surgical 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.
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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.
如果你正在尋找一個多袋子,有幾個東西需要注意。通常,我們會注意到一種增長的趨勢退貨關於已使用資本(ROCE)以及與之相伴隨的是不斷擴大的基地已動用資本的比例。如果你看到這個,通常意味着它是一家擁有出色商業模式和大量有利可圖的再投資機會的公司。説到這裏,我們注意到了一些很大的變化星空外科(納斯達克:STAA)資本回報率,我們來看看。
資本回報率(ROCE):它是什麼?
如果您不確定,只需澄清一下,ROCE是一種評估公司投資於其業務的資本獲得多少税前收入(按百分比計算)的指標。STAAR Surggical的計算公式為:
已動用資本回報率=息税前收益(EBIT)?(總資產-流動負債)
0.13美元=4400萬美元(3.76億美元-4700萬美元)(根據截至2022年7月的往績12個月計算).
所以呢,STAAR Surgical的淨資產收益率為13%。就絕對值而言,這是一個令人滿意的回報率,但與醫療設備行業9.2%的平均回報率相比,這要好得多。
查看我們對STAAR Surggical的最新分析
NasdaqGM:Staa資本回報率2022年9月12日在上面的圖表中,我們衡量了STAAR Surgical之前的ROCE和它之前的表現,但可以説未來更重要。如果您想查看分析師對未來的預測,您應該查看我們的免費為STAAR外科報到。
從STAAR Surgical的ROCE趨勢中我們能看出什麼?
我們很高興地看到,STAAR Surgical正在從投資中獲得回報,現在正在產生一些税前利潤。大約五年前,該公司還在虧損,但情況已經好轉,因為它現在的資本回報率為13%。不僅如此,該公司利用的資本比以前多了637%,但對於一家試圖進入盈利領域的公司來説,這是意料之中的。這可能表明,有很多機會在內部以更高的利率進行資本投資,這兩個特點都是多管齊下的。
還有一件事需要注意,STAAR Surgical在此期間將流動負債減少到總資產的12%,這有效地減少了來自供應商或短期債權人的資金。因此,股東們會感到高興的是,回報的增長主要來自潛在的業務表現。
STAAR Surgical ROCE的底線
長話短説,我們很高興看到STAAR Surgical的再投資活動得到了回報,公司現在已經盈利。由於該股在過去五年裏向股東回報了驚人的764%,看起來投資者正在認識到這些變化。話雖如此,我們仍然認為,前景看好的基本面意味着該公司值得進行進一步的盡職調查。
另外,我們發現1個STAAR外科警示標誌你可能會想知道。
對於那些喜歡投資於穩固的公司,看看這個免費資產負債表穩健、股本回報率高的公司名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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