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Traton (ETR:8TRA) Is Doing The Right Things To Multiply Its Share Price
Traton's (ETR:8TRA) return on capital employed (ROCE) is 9.4%. In absolute terms, that's a low return, but it's around the Machinery industry average of 11%. Traton has rewarded shareholders with a 28% return over the last three years. We think it would be worth your time to check if these trends are going to continue.
Here's What To Make Of Mueller Water Products' (NYSE:MWA) Decelerating Rates Of Return Mueller Water Products has an ROCE of 9.6%. In absolute terms, that's a low return but it's around the Machinery industry average of 12%. The company has only returned a total of 25% to shareholders over the last five years. If you're looking for a multi-bagger, we'd propose looking at other options.
The Return Trends At Mpac Group (LON:MPAC) Look Promising There are a few key trends to look for if we want to identify the next multi-bagger. First, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Mpac Group has an ROCE of 1.9%, which is below the Machinery industry average of 14%. The data shows that returns on capital have increased substantially over the last five years. It's worth researching the company further to see if these trends are likely to persist.
Here's What's Concerning About Aumann's (ETR:AAG) Returns On Capital Aumann's (ETR:AAG) return on capital employed (ROCE) is 1.0%. In absolute terms, that's a low return. It also under-performs the Machinery industry average of 11%. If these trends continue, we wouldn't expect Aumann to turn into a multi-bagger. If you want to search for solid companies with great earnings, check out this free list of companies.
Why We Like The Returns At Lincoln Electric Holdings (NASDAQ:LECO) Return on capital employed (ROCE) measures the'return' (pre-tax profit) a company generates from capital employed in its business. Lincoln Electric Holdings has an ROCE of 26%. In absolute terms that's a great return and it's even better than the Machinery industry average of 11%. If you'd like to see more, check out our free list of companies earning high returns.
A Look Into RATIONAL's (ETR:RAA) Impressive Returns On Capital RATIONAL's (ETR:RAA) ROCE is 34%. In absolute terms that's a great return and it's even better than the Machinery industry average of 11%. The company has employed 58% more capital in the last five years, and the returns on that capital have remained stable. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger.
We Think Morgan Advanced Materials (LON:MGAM) Might Have The DNA Of A Multi-Bagger Morgan Advanced Materials's (LON:MGAM) ROCE is 20%. In absolute terms that's a great return and it's even better than the Machinery industry average of 12%. Since the total return from the stock has been almost flat over the last five years, there might be an opportunity here if the valuation looks good. If you'd like, you can check out the forecasts from the analysts covering Morgan Advanced Materials here for free.
Returns Are Gaining Momentum At Fu Yu (SGX:F13) Fu Yu's (SGX:F13) return on capital employed (ROCE) is 10.0%. In absolute terms, that's a low return, but it's much better than the Machinery industry average of 5.8%. While the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 60% in that same time. While it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking.
Cummins (NYSE:CMI) Has More To Do To Multiply In Value Going Forward Cummins has an ROCE of 17%. In absolute terms, that's a satisfactory return, but compared to the Machinery industry average of 11%. Over the past five years, Cummins has remained relatively flat at around 17%. The business has deployed 55% more capital into its operations. It appears the market might expect this trend to continue, so we think this stock is worth looking into further.
ASL Marine Holdings (SGX:A04) Is Looking To Continue Growing Its Returns On Capital ASL Marine Holdings has an ROCE of 0.5%. That's a low return and it under-performs the Machinery industry average of 6.3%. The company was generating losses five years ago, but now it's turned around. Given the stock has declined 39% in the last five years, this could be a good investment if the valuation and other metrics are appealing.
The Trend Of High Returns At Mueller Industries (NYSE:MLI) Has Us Very Interested Mueller Industries has a Return On Capital Employed (ROCE) of 46%. In absolute terms that's a great return and it's even better than the Machinery industry average of 11%. Over the last five years, returns on capital employed have risen substantially to 46%. If you want to continue researching Mueller Industries, you might be interested to know about the 1 warning sign our analysis has discovered.
Returns on Capital Paint A Bright Future For Illinois Tool Works (NYSE:ITW) Illinois Tool Works has an ROCE of 35%. In absolute terms that's a great return and it's even better than the Machinery industry average of 11%. The data shows that returns on capital have increased by 41% over the trailing five years. If Illinois Tool Works can keep these trends up, it could have a bright future ahead.
Slowing Rates Of Return At Mueller Water Products (NYSE:MWA) Leave Little Room For Excitement Mueller Water Products has an ROCE of 9.9%. In absolute terms, that's a low return but it's around the Machinery industry average of 11%. The stock has only gained 35% over the last five years. If you're looking for a multi-bagger, the underlying trends indicate you may have better chances elsewhere.
Investors Shouldn't Overlook The Favourable Returns On Capital At Snap-on (NYSE:SNA) Snap-on's (NYSE:SNA) ROCE is 21%, which is better than the Machinery industry average of 11%. The company has consistently earned 21% for the last five years, and the capital employed within the business has risen 45% in that time. If Snap-on can keep this up, we'd be very optimistic about its future. If you want to search for more stocks that have been earning high returns, check out this free list of stocks.
Astec Industries (NASDAQ:ASTE) Could Be At Risk Of Shrinking As A Company Astec Industries's (NASDAQ:ASTE) ROCE is 1.6%. That's a low return, and it under-performs the Machinery industry average of 11%. If these trends continue, we wouldn't expect Astec Industries to turn into a multi-bagger. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets.
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