Returns On Capital Are Showing Encouraging Signs At Grupo Carso. de (BMV:GCARSOA1)

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. 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, Grupo Carso. de (BMV:GCARSOA1) looks quite promising in regards to its trends of return on capital.

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Return On Capital Employed (ROCE): What Is It?

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Grupo Carso. de, this is the formula:

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

0.11 = Mex$22b ÷ (Mex$269b - Mex$63b) (Based on the trailing twelve months to June 2025).

So, Grupo Carso. de has an ROCE of 11%. On its own, that's a standard return, however it's much better than the 8.9% generated by the Industrials industry.

See our latest analysis for Grupo Carso. de

In the above chart we have measured Grupo Carso. de's 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 Grupo Carso. de for free.

The Trend Of ROCE

Investors would be pleased with what's happening at Grupo Carso. de. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 11%. Basically the business is earning more per dollar of capital invested and in addition to that, 51% more capital is being employed now too. So we're very much inspired by what we're seeing at Grupo Carso. de thanks to its ability to profitably reinvest capital.

The Bottom Line On Grupo Carso. de's 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 Grupo Carso. de has. And a remarkable 198% total return over the last five years tells us that investors are expecting more good things to come in the future. In light of that, we think it's worth looking further into this stock because if Grupo Carso. de can keep these trends up, it could have a bright future ahead.

If you'd like to know about the risks facing Grupo Carso. de, we've discovered 1 warning sign that you should be aware of.

While Grupo Carso. de 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.