Returns At Fattal Holdings (1998) (TLV:FTAL) Are On The Way Up

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Speaking of which, we noticed some great changes in Fattal Holdings (1998)'s (TLV:FTAL) returns on capital, so let's have a look.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

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 Fattal Holdings (1998) is:

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

0.044 = ₪1.2b ÷ (₪30b - ₪4.1b) (Based on the trailing twelve months to June 2025).

Therefore, Fattal Holdings (1998) has an ROCE of 4.4%. Ultimately, that's a low return and it under-performs the Hospitality industry average of 6.1%.

View our latest analysis for Fattal Holdings (1998)

Historical performance is a great place to start when researching a stock so above you can see the gauge for Fattal Holdings (1998)'s ROCE against it's prior returns. If you're interested in investigating Fattal Holdings (1998)'s past further, check out this free graph covering Fattal Holdings (1998)'s past earnings, revenue and cash flow.

So How Is Fattal Holdings (1998)'s ROCE Trending?

Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. The data shows that returns on capital have increased substantially over the last five years to 4.4%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 39%. So we're very much inspired by what we're seeing at Fattal Holdings (1998) thanks to its ability to profitably reinvest capital.

What We Can Learn From Fattal Holdings (1998)'s ROCE

All in all, it's terrific to see that Fattal Holdings (1998) is reaping the rewards from prior investments and is growing its capital base. And a remarkable 154% total return over the last five years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue.

If you'd like to know more about Fattal Holdings (1998), we've spotted 2 warning signs, and 1 of them is significant.

While Fattal Holdings (1998) isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.