Returns At Trive Property Group Berhad (KLSE:TRIVE) Are On The Way Up

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at Trive Property Group Berhad (KLSE:TRIVE) and its trend of ROCE, we really liked what we saw.

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What Is Return On Capital Employed (ROCE)?

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Trive Property Group Berhad:

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

0.018 = RM2.2m ÷ (RM127m - RM8.2m) (Based on the trailing twelve months to July 2025).

So, Trive Property Group Berhad has an ROCE of 1.8%. In absolute terms, that's a low return and it also under-performs the Electrical industry average of 11%.

View our latest analysis for Trive Property Group Berhad

Historical performance is a great place to start when researching a stock so above you can see the gauge for Trive Property Group Berhad's ROCE against it's prior returns. If you'd like to look at how Trive Property Group Berhad has performed in the past in other metrics, you can view this free graph of Trive Property Group Berhad's past earnings, revenue and cash flow.

How Are Returns Trending?

Shareholders will be relieved that Trive Property Group Berhad has broken into profitability. The company was generating losses five years ago, but has managed to turn it around and as we saw earlier is now earning 1.8%, which is always encouraging. Interestingly, the capital employed by the business has remained relatively flat, so these higher returns are either from prior investments paying off or increased efficiencies. With no noticeable increase in capital employed, it's worth knowing what the company plans on doing going forward in regards to reinvesting and growing the business. So if you're looking for high growth, you'll want to see a business's capital employed also increasing.

The Bottom Line On Trive Property Group Berhad's ROCE

To bring it all together, Trive Property Group Berhad has done well to increase the returns it's generating from its capital employed. Although the company may be facing some issues elsewhere since the stock has plunged 93% in the last five years. Regardless, we think the underlying fundamentals warrant this stock for further investigation.

If you'd like to know more about Trive Property Group Berhad, we've spotted 3 warning signs, and 2 of them don't sit too well with us.

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.