OceanPact Serviços Marítimos (BVMF:OPCT3) Might Have The Makings Of A Multi-Bagger

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, we've noticed some promising trends at OceanPact Serviços Marítimos (BVMF:OPCT3) so let's look a bit deeper.

Understanding Return On Capital Employed (ROCE)

Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested 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)

0.11 = R$273m ÷ (R$3.0b - R$554m) (Based on the trailing twelve months to December 2024).

So, OceanPact Serviços Marítimos has an ROCE of 11%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Commercial Services industry average of 12%.

See 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, you can check out the forecasts from the analysts covering OceanPact Serviços Marítimos for free.

What Does the ROCE Trend For OceanPact Serviços Marítimos Tell Us?

We like the trends that we're seeing from OceanPact Serviços Marítimos. The data shows that returns on capital have increased substantially over the last five years to 11%. The amount of capital employed has increased too, by 407%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.

One more thing to note, OceanPact Serviços Marítimos has decreased current liabilities to 18% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. This tells us that OceanPact Serviços Marítimos has grown its returns without a reliance on increasing their current liabilities, which we're very happy with.

What We Can Learn From OceanPact Serviços Marítimos' ROCE

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 solid 79% to shareholders over the last three years, it's fair to say investors are beginning to recognize these changes. In light of that, we think it's worth looking further into this stock because if OceanPact Serviços Marítimos can keep these trends up, it could have a bright future ahead.

Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our FREE intrinsic value estimation for OPCT3 that compares the share price and estimated value.

If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.

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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.