Promotora y Operadora de Infraestructura S. A. B. de C. V (BMV:PINFRA) Might Have The Makings Of A Multi-Bagger

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. 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. With that in mind, we've noticed some promising trends at Promotora y Operadora de Infraestructura S. A. B. de C. V (BMV:PINFRA) so let's look a bit deeper.

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

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 Promotora y Operadora de Infraestructura S. A. B. de C. V is:

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

0.14 = Mex$11b ÷ (Mex$84b - Mex$5.9b) (Based on the trailing twelve months to March 2025).

So, Promotora y Operadora de Infraestructura S. A. B. de C. V has an ROCE of 14%. In absolute terms, that's a satisfactory return, but compared to the Infrastructure industry average of 12% it's much better.

View our latest analysis for Promotora y Operadora de Infraestructura S. A. B. de C. V

Above you can see how the current ROCE for Promotora y Operadora de Infraestructura S. A. B. de C. V 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 Promotora y Operadora de Infraestructura S. A. B. de C. V .

So How Is Promotora y Operadora de Infraestructura S. A. B. de C. V's ROCE Trending?

Promotora y Operadora de Infraestructura S. A. B. de C. V's ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 58% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking.

What We Can Learn From Promotora y Operadora de Infraestructura S. A. B. de C. V's ROCE

As discussed above, Promotora y Operadora de Infraestructura S. A. B. de C. V appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 52% return over the last five years. In light of that, we think it's worth looking further into this stock because if Promotora y Operadora de Infraestructura S. A. B. de C. V can keep these trends up, it could have a bright future ahead.

Promotora y Operadora de Infraestructura S. A. B. de C. V does have some risks, we noticed 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

While Promotora y Operadora de Infraestructura S. A. B. de C. V 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.