The Return Trends At OBIC Business Consultants (TSE:4733) Look Promising

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. With that in mind, we've noticed some promising trends at OBIC Business Consultants (TSE:4733) so let's look a bit deeper.

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Understanding Return On Capital Employed (ROCE)

For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on OBIC Business Consultants is:

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

0.13 = JP¥23b ÷ (JP¥214b - JP¥40b) (Based on the trailing twelve months to September 2025).

So, OBIC Business Consultants has an ROCE of 13%. In absolute terms, that's a pretty standard return but compared to the Software industry average it falls behind.

See our latest analysis for OBIC Business Consultants

Above you can see how the current ROCE for OBIC Business Consultants compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for OBIC Business Consultants .

What The Trend Of ROCE Can Tell Us

Investors would be pleased with what's happening at OBIC Business Consultants. Over the last five years, returns on capital employed have risen substantially to 13%. The amount of capital employed has increased too, by 36%. So we're very much inspired by what we're seeing at OBIC Business Consultants thanks to its ability to profitably reinvest capital.

The Bottom Line On OBIC Business Consultants' ROCE

All in all, it's terrific to see that OBIC Business Consultants is reaping the rewards from prior investments and is growing its capital base. Considering the stock has delivered 30% to its stockholders over the last five years, it may be fair to think that investors aren't fully aware of the promising trends yet. So with that in mind, we think the stock deserves further research.

On the other side of ROCE, we have to consider valuation. That's why we have a FREE intrinsic value estimation for 4733 on our platform that is definitely worth checking out.

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.