Oshkosh (NYSE:OSK) Will Want To Turn Around Its Return Trends
Oshkosh (NYSE:OSK) Will Want To Turn Around Its Return Trends
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? 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. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. In light of that, when we looked at Oshkosh (NYSE:OSK) and its ROCE trend, we weren't exactly thrilled.
What Is Return On Capital Employed (ROCE)?
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. Analysts use this formula to calculate it for Oshkosh:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.077 = US$410m ÷ (US$7.7b - US$2.4b) (Based on the trailing twelve months to December 2022).
So, Oshkosh has an ROCE of 7.7%. In absolute terms, that's a low return and it also under-performs the Machinery industry average of 11%.
See our latest analysis for Oshkosh
Above you can see how the current ROCE for Oshkosh 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 report for Oshkosh.
The Trend Of ROCE
When we looked at the ROCE trend at Oshkosh, we didn't gain much confidence. Around five years ago the returns on capital were 16%, but since then they've fallen to 7.7%. 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 may take some time before the company starts to see any change in earnings from these investments.
The Bottom Line On Oshkosh's ROCE
In summary, Oshkosh is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. And with the stock having returned a mere 9.6% 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.
On a separate note, we've found 3 warning signs for Oshkosh 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) simplywallst.com.
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.
你知道嗎,有一些財務指標可以提供潛在的多管齊下的線索?一種常見的方法是嘗試找到一家擁有退貨已使用資本(ROCE)正在增加,同時也在增長金額已動用資本的比例。歸根結底,這表明它是一家正在以越來越高的回報率對利潤進行再投資的企業。有鑒於此,當我們看到奧什科什(紐約證券交易所股票代碼:OSK)及其ROCE趨勢,我們並不是很興奮。
什麼是資本回報率(ROCE)?
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稅前收入(按百分比計算)的指標。分析人士使用以下公式來計算奧什科什的價格:
已動用資本回報率=息稅前收益(EBIT)?(總資產-流動負債)
0.077美元=4.1億美元(77億-24億美元)(根據截至2022年12月的往績12個月計算).
所以,Oshkosh的淨資產收益率為7.7%。按絕對值計算,這是一個較低的回報率,也低於機械行業11%的平均水準。
查看我們對Oshkosh的最新分析
在上面,你可以看到奧什科什目前的淨資產收益率與之前的資本回報率相比如何,但你只能從過去知道這麼多。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奧什科什報到。
ROCE的發展趨勢
當我們觀察Oshkosh的ROCE趨勢時,我們並沒有獲得太多信心。大約五年前,資本回報率為16%,但自那以來已降至7.7%。與此同時,該公司正在利用更多資本,但這在過去12個月的銷售額方面沒有太大變化,因此這可能反映了較長期的投資。該公司可能需要一段時間才能開始看到這些投資帶來的收益變化。
奧什科什ROCE的底線
總而言之,Oshkosh正在將資金重新投資到業務中,以實現增長,但不幸的是,銷售額看起來還沒有太大增長。鑑於過去五年該股對股東的回報率僅為9.6%,你可以說他們意識到了這些乏善可陳的趨勢。因此,如果您正在尋找一個多袋子,我們建議尋找其他選擇。
另外,我們發現奧什科什的3個警告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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