If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll want to notice a trend of growing on capital employed (ROCE) and alongside that, an expanding of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return.
Although, when we looked at ( ), it didn't seem to tick all of these boxes. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Oceancash Pacific Berhad, this is the formula: 0.
044 = RM5.9m ÷ (RM149m - RM13m) . Thus, In absolute terms, that's a low return and it also under-performs the Luxury industry average of 8.
2%. While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating Oceancash Pacific Berhad's past further, check out this .
When we looked at the ROCE trend at Oceancash Pacific Berhad, we didn't gain much confidence. To be more specific, ROCE has fallen from 7.7% over the last five years.
Given the business is employing more capital while revenue has slipped, this is a bit concerning. If this were to continue, you might be looking at a company that is trying to reinvest for growth but is actually losing market share since sales haven't increased. In summary, we're somewhat .