Multiple Companies Show Varied ROCE Growth Across Industries

Investors seeking potential multi-bagger stocks should look for companies exhibiting growing returns on capital employed (ROCE) alongside an expanding capital base, indicating effective reinvestment of earnings at increasing rates. Warisan TC Holdings Berhad shows a low ROCE of 0.5%, underperforming its industry average, but it has recently become profitable, suggesting positive momentum. Park Aerospace has an ROCE of 8.3%, below its industry average, with a 27% ROCE growth over five years, though it has decreased its capital employed by 31%, which may limit growth potential. Newmont stands out with a 14% ROCE, surpassing its industry average, and has increased its capital employed by 33%, signaling strong internal investment opportunities and compounding growth. Rougier has improved to a 9.2% ROCE, outperforming its industry average, transitioning from loss-making to profitable, which is promising for future returns. WIZ CORP, despite a low ROCE of 2.8%, has nearly doubled its capital employed in five years, indicating potential for growth if returns continue to improve.