OceanPact Serviços Marítimos (BVMF:OPCT3) Is Doing The Right Things To Multiply Its Share Price

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. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, we've noticed some promising trends at OceanPact Serviços Marítimos (BVMF:OPCT3) so let's look a bit deeper.

Return On Capital Employed (ROCE): What Is It?

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on OceanPact Serviços Marítimos is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.13 = R$255m ÷ (R$2.4b - R$513m) (Based on the trailing twelve months to September 2023).

Therefore, OceanPact Serviços Marítimos has an ROCE of 13%. That's a relatively normal return on capital, and it's around the 15% generated by the Commercial Services industry.

View our latest analysis for OceanPact Serviços Marítimos

In the above chart we have measured OceanPact Serviços Marítimos' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free report for OceanPact Serviços Marítimos.

The Trend Of ROCE

OceanPact Serviços Marítimos is displaying some positive trends. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 13%. The amount of capital employed has increased too, by 403%. So we're very much inspired by what we're seeing at OceanPact Serviços Marítimos thanks to its ability to profitably reinvest capital.

The Bottom Line

A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what OceanPact Serviços Marítimos has. Since the stock has returned a staggering 168% to shareholders over the last year, it looks like investors are recognizing these changes. Therefore, we think it would be worth your time to check if these trends are going to continue.

One more thing: We've identified 2 warning signs with OceanPact Serviços Marítimos (at least 1 which doesn't sit too well with us) , and understanding them would certainly be useful.

While OceanPact Serviços Marítimos isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.

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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.