The Return Trends At Estithmar Holding Q.P.S.C (DSM:IGRD) Look Promising

What trends should we look for it we want to identify stocks that can multiply in value over the long term? 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. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, Estithmar Holding Q.P.S.C (DSM:IGRD) looks quite promising in regards to its trends of return on capital.

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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. The formula for this calculation on Estithmar Holding Q.P.S.C is:

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

0.11 = ر.ق920m ÷ (ر.ق12b - ر.ق3.6b) (Based on the trailing twelve months to June 2025).

Thus, Estithmar Holding Q.P.S.C has an ROCE of 11%. That's a relatively normal return on capital, and it's around the 9.2% generated by the Construction industry.

Check out our latest analysis for Estithmar Holding Q.P.S.C

In the above chart we have measured Estithmar Holding Q.P.S.C's prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Estithmar Holding Q.P.S.C .

The Trend Of ROCE

The trends we've noticed at Estithmar Holding Q.P.S.C are quite reassuring. Over the last three years, returns on capital employed have risen substantially to 11%. The amount of capital employed has increased too, by 66%. So we're very much inspired by what we're seeing at Estithmar Holding Q.P.S.C thanks to its ability to profitably reinvest capital.

What We Can Learn From Estithmar Holding Q.P.S.C's ROCE

All in all, it's terrific to see that Estithmar Holding Q.P.S.C is reaping the rewards from prior investments and is growing its capital base. And a remarkable 133% total return over the last three years tells us that investors are expecting more good things to come in the future. Therefore, we think it would be worth your time to check if these trends are going to continue.

Estithmar Holding Q.P.S.C does have some risks though, and we've spotted 2 warning signs for Estithmar Holding Q.P.S.C that you might be interested in.

For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high 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.