Returns Are Gaining Momentum At Impulsora del Desarrollo y el Empleo en América Latina. de (BMV:IDEALB-1)

What are the early trends we should look for to identify a stock that could multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, we've noticed some promising trends at Impulsora del Desarrollo y el Empleo en América Latina. de (BMV:IDEALB-1) so let's look a bit deeper.

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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. The formula for this calculation on Impulsora del Desarrollo y el Empleo en América Latina. de is:

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

0.13 = Mex$18b ÷ (Mex$150b - Mex$20b) (Based on the trailing twelve months to September 2025).

Thus, Impulsora del Desarrollo y el Empleo en América Latina. de has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Construction industry average of 9.7% it's much better.

View our latest analysis for Impulsora del Desarrollo y el Empleo en América Latina. de

Historical performance is a great place to start when researching a stock so above you can see the gauge for Impulsora del Desarrollo y el Empleo en América Latina. de's ROCE against it's prior returns. If you'd like to look at how Impulsora del Desarrollo y el Empleo en América Latina. de has performed in the past in other metrics, you can view this free graph of Impulsora del Desarrollo y el Empleo en América Latina. de's past earnings, revenue and cash flow.

The Trend Of ROCE

The trends we've noticed at Impulsora del Desarrollo y el Empleo en América Latina. de are quite reassuring. The data shows that returns on capital have increased substantially over the last five years to 13%. 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 58%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.

In Conclusion...

All in all, it's terrific to see that Impulsora del Desarrollo y el Empleo en América Latina. de is reaping the rewards from prior investments and is growing its capital base. Since the stock has only returned 28% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up.

On a final note, we found 2 warning signs for Impulsora del Desarrollo y el Empleo en América Latina. de (1 is potentially serious) you should be aware of.

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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.