Returns Are Gaining Momentum At Société Française de Casinos Société Anonyme (EPA:SFCA)

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding 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. So on that note, Société Française de Casinos Société Anonyme (EPA:SFCA) looks quite promising in regards to its trends of return on capital.

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Understanding Return On Capital Employed (ROCE)

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. Analysts use this formula to calculate it for Société Française de Casinos Société Anonyme:

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

0.089 = €1.4m ÷ (€22m - €6.6m) (Based on the trailing twelve months to April 2025).

So, Société Française de Casinos Société Anonyme has an ROCE of 8.9%. Even though it's in line with the industry average of 8.5%, it's still a low return by itself.

See our latest analysis for Société Française de Casinos Société Anonyme

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 want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Société Française de Casinos Société Anonyme.

So How Is Société Française de Casinos Société Anonyme's ROCE Trending?

Société Française de Casinos Société Anonyme has not disappointed in regards to ROCE growth. The data shows that returns on capital have increased by 1,010% over the trailing five years. The company is now earning €0.09 per dollar of capital employed. Interestingly, the business may be becoming more efficient because it's applying 47% less capital than it was five years ago. A business that's shrinking its asset base like this isn't usually typical of a soon to be multi-bagger company.

The Bottom Line On Société Française de Casinos Société Anonyme's ROCE

In a nutshell, we're pleased to see that Société Française de Casinos Société Anonyme has been able to generate higher returns from less capital.

On a final note, we found 2 warning signs for Société Française de Casinos Société Anonyme (1 can't be ignored) you should be aware of.

While Société Française de Casinos Société Anonyme 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.