MRS Logística (BVMF:MRSA3B) Might Have The Makings Of A Multi-Bagger

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. 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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So on that note, MRS Logística (BVMF:MRSA3B) looks quite promising in regards to its trends of return on capital.

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What Is 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. To calculate this metric for MRS Logística, this is the formula:

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

0.14 = R$2.5b ÷ (R$20b - R$2.9b) (Based on the trailing twelve months to March 2025).

Therefore, MRS Logística has an ROCE of 14%. That's a relatively normal return on capital, and it's around the 13% generated by the Transportation industry.

View our latest analysis for MRS Logística

Historical performance is a great place to start when researching a stock so above you can see the gauge for MRS Logística's ROCE against it's prior returns. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of MRS Logística.

What Does the ROCE Trend For MRS Logística Tell Us?

Investors would be pleased with what's happening at MRS Logística. Over the last five years, returns on capital employed have risen substantially to 14%. The amount of capital employed has increased too, by 107%. So we're very much inspired by what we're seeing at MRS Logística thanks to its ability to profitably reinvest capital.

The Bottom Line On MRS Logística's ROCE

In summary, it's great to see that MRS Logística can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. Since the total return from the stock has been almost flat over the last five years, there might be an opportunity here if the valuation looks good. With that in mind, we believe the promising trends warrant this stock for further investigation.

One final note, you should learn about the 3 warning signs we've spotted with MRS Logística (including 1 which is potentially serious) .

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.