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.
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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.
你知道吗,有一些财务指标可以提供潜在的多管齐下的线索?一种常见的方法是尝试找到一家拥有退货已使用资本(ROCE)正在增加,同时也在增长金额已动用资本的比例。归根结底,这表明它是一家正在以越来越高的回报率对利润进行再投资的企业。有鉴于此,当我们看到奥什科什(纽约证券交易所股票代码:OSK)及其ROCE趋势,我们并不是很兴奋。
什么是资本回报率(ROCE)?
如果您不确定,只需澄清一下,ROCE是一种评估公司投资于其业务的资本获得多少税前收入(按百分比计算)的指标。分析人士使用以下公式来计算奥什科什的价格:
已动用资本回报率=息税前收益(EBIT)?(总资产-流动负债)
0.077美元=4.1亿美元(77亿-24亿美元)(根据截至2022年12月的往绩12个月计算)。
所以,Oshkosh的净资产收益率为7.7%。按绝对值计算,这是一个较低的回报率,也低于机械行业11%的平均水平。
查看我们对Oshkosh的最新分析
在上面,你可以看到奥什科什目前的净资产收益率与之前的资本回报率相比如何,但你只能从过去知道这么多。如果您想查看分析师对未来的预测,您应该查看我们的免费为奥什科什报到。
ROCE的发展趋势
当我们观察Oshkosh的ROCE趋势时,我们并没有获得太多信心。大约五年前,资本回报率为16%,但自那以来已降至7.7%。与此同时,该公司正在利用更多资本,但这在过去12个月的销售额方面没有太大变化,因此这可能反映了较长期的投资。该公司可能需要一段时间才能开始看到这些投资带来的收益变化。
奥什科什ROCE的底线
总而言之,Oshkosh正在将资金重新投资到业务中,以实现增长,但不幸的是,销售额看起来还没有太大增长。鉴于过去五年该股对股东的回报率仅为9.6%,你可以说他们意识到了这些乏善可陈的趋势。因此,如果您正在寻找一个多袋子,我们建议寻找其他选择。
另外,我们发现奥什科什的3个警告标志你可能会想知道。
对于那些喜欢投资于稳固的公司,看看这个免费资产负债表稳健、股本回报率高的公司名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。
译文内容由第三方软件翻译。
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