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5 hours ago
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editorial-team@simplywallst.com (Simply Wall St)
Thu, May 15, 2025, 10:46 PM 2 min read
If you're looking for a multi-bagger, there's a fewer things to support an oculus retired for. In a cleanable world, we'd similar to spot a institution investing much superior into its concern and ideally the returns earned from that superior are besides increasing. Basically this means that a institution has profitable initiatives that it tin proceed to reinvest in, which is simply a trait of a compounding machine. That's wherefore erstwhile we concisely looked astatine Jungfraubahn Holding's (VTX:JFN) ROCE trend, we were beauteous blessed with what we saw.
For those that aren't definite what ROCE is, it measures the magnitude of pre-tax profits a institution tin make from the superior employed successful its business. The look for this calculation connected Jungfraubahn Holding is:
Return connected Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.11 = CHF95m ÷ (CHF946m - CHF80m) (Based connected the trailing 12 months to December 2024).
Thus, Jungfraubahn Holding has an ROCE of 11%. On its own, that's a modular return, nevertheless it's overmuch amended than the 6.0% generated by the Transportation industry.
Check retired our latest investigation for Jungfraubahn Holding
Above you tin spot however the existent ROCE for Jungfraubahn Holding compares to its anterior returns connected capital, but there's lone truthful overmuch you tin archer from the past. If you're interested, you tin presumption the analysts predictions successful our free analyst study for Jungfraubahn Holding .
While the existent returns connected superior are decent, they haven't changed much. The institution has consistently earned 11% for the past 5 years, and the superior employed wrong the concern has risen 24% successful that time. Since 11% is simply a mean ROCE though, it's bully to spot a concern tin proceed to reinvest astatine these decent rates of return. Over agelong periods of time, returns similar these mightiness not beryllium excessively exciting, but with consistency they tin wage disconnected successful presumption of stock terms returns.
The main happening to retrieve is that Jungfraubahn Holding has proven its quality to continually reinvest astatine respectable rates of return. And the banal has followed suit returning a meaningful 79% to shareholders implicit the past 5 years. So portion investors look to beryllium recognizing these promising trends, we inactive judge the banal deserves further research.
On a last note, we've recovered 1 informing motion for Jungfraubahn Holding that we deliberation you should beryllium alert of.
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