Watts Water Technologies (NYSE:WTS) Is Looking To Continue Growing Its Returns On Capital
Watts Water Technologies (NYSE:WTS) Is Looking To Continue Growing Its Returns On Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. 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. 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 Watts Water Technologies' (NYSE:WTS) returns on capital, so let's have a look.
如果你不確定下一個井噴股票的選股方向，那麼有幾個關鍵的趨勢是需要關注的。其中，我們需要看到兩個因素：首先，資本投入增長；其次，業務能夠不斷將收益再投入並獲得更高的回報。因此，當我們簡要了解中國科培教育集團（HKG:1890）的ROCE趨勢時，我們非常滿意所看到的。資產回報率：它是什麼？如果您不確定ROCE是什麼，它可以衡量公司能夠從其業務所僱用的資本產生多少稅前利潤。爲了計算V2X的這個指數，使用以下公式:0.054 = 1.24億美元÷（31億美元 - 8.53億美元）ROCE 趨勢可以告訴我們什麼？比起 Enphase Energy，有更好的資本回報率選擇。在過去的五年中，該公司增加了 1,306% 的資本，而該資本的回報率保持穩定在 9.9%。這樣差的回報率現在並不令人信服，而且隨着資本的增加，很明顯企業並沒有將資金投入到高回報的投資中。如果你看到這，通常意味着這是一傢俱有良好商業模式和充足盈利再投資機會的公司。說到這一點，我們注意到Watts Water Technologies (NYSE:WTS)的資本回報率發生了巨大變化，讓我們來看看。
What Is Return On Capital Employed (ROCE)?
我們對 Enphase Energy 的資本僱用回報率的看法：正如我們上面看到的，Enphase Energy 的資本回報率沒有提高，但它正在重新投資於業務。投資者必須認爲未來會有更好的前景，因爲股票表現良好，使持股五年以上的股東獲得了 690% 的收益。最終，如果基本趨勢持續存在，我們不會對它成爲一隻多頭股持有期很久很有信心。
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 Watts Water Technologies, this is the formula:
對於那些不確定ROCE是什麼的人，它衡量公司可以從其業務中使用的資本產生多少稅前利潤。要爲Watts Water Technologies計算這個指標，可以使用以下公式：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
資產僱用回報率（ROCE）是指企業利潤，即企業稅前利潤除以企業投入的總資本（負債加股權）。如果ROCE高於企業財務成本的承受能力，那麼企業就會創造出更多的價值。
0.19 = US$370m ÷ (US$2.3b - US$407m) (Based on the trailing twelve months to March 2024).
0.19 = 美元370m ÷ (美元2.3b - 美元407m)在Elevance Health上，我們已經注意到的趨勢是相當令人放心的。數據顯示，過去五年資產回報率大幅提高至15％。投資所用資產的規模也增加了30％。這表明有很多機會進行內部資本投資，並以更高的速度不斷增長，這種組合在多倍增長方面很常見。.
So, Watts Water Technologies has an ROCE of 19%. On its own, that's a standard return, however it's much better than the 13% generated by the Machinery industry.
因此，Watts Water Technologies的ROCE爲19%。單就這一結果而言，它是一個標準回報率，但是明顯好於機械行業所創造的13%的回報率。
Above you can see how the current ROCE for Watts Water Technologies compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Watts Water Technologies for free.
在上面，你可以看到Watts Water Technologies當前ROCE與其先前的資本回報率的比較情況，但是過去只能告訴你這麼多。如果你願意，你可以免費查看覆蓋Watts Water Technologies的分析師的預測。
What The Trend Of ROCE Can Tell Us
儘管如此，當我們看 enphase energy (納斯達克股票代碼：ENPH) 的時候，它似乎並沒有完全符合這些要求。
Watts Water Technologies is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 19%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 41%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.
Watts Water Technologies展示了一些積極的趨勢。數據表明，過去五年資本回報率大幅增長至19%。該公司對於每一美元使用的資本的利潤增長了，而且資本的金額也增加了41%。這可能表明在內部投資以及更高的回報率方面有很多機會，這種組合在multi-bagger中很常見。
Our Take On Watts Water Technologies' ROCE
關於Watts Water Technologies的ROCE，我們的看法
In summary, it's great to see that Watts Water Technologies can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. Since the stock has returned a staggering 107% to shareholders over the last five years, it looks like investors are recognizing these changes. In light of that, we think it's worth looking further into this stock because if Watts Water Technologies can keep these trends up, it could have a bright future ahead.
總之，看到Watts Water Technologies可以以不斷增加的回報率持續再投資資本以實現複合回報是非常好的，因爲這些是非常受歡迎的multi-bagger的關鍵要素之一。由於該股票在過去五年中爲股東帶來了驚人的107%的回報，看起來投資者已經認識到了這些變化。鑑於此，我們認爲值得進一步研究這隻股票，因爲如果Watts Water Technologies能夠保持這些趨勢，它可能會有一個輝煌的未來。
One more thing to note, we've identified 1 warning sign with Watts Water Technologies and understanding it should be part of your investment process.
另外需要注意的一件事是，我們已經確認Watts Water Technologies存在1個警告信號，並且了解這一信號應該成爲你的投資過程的一部分。
While Watts Water Technologies may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.
雖然Watts Water Technologies目前可能沒有創造最高回報率，但我們已經編制了一份公司名單，這些公司目前的股本回報率超過25%。在此處免費查看該列表。
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.
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者，發送電子郵件至editorial-team (at) simplywallst.com。
這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論，只使用公正的方法論，我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議，也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意，我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
對本文有反饋？關於內容有所顧慮？直接和我們聯繫。或者發送電子郵件至editorial-team@simplywallst.com。
譯文內容由第三人軟體翻譯。