Returns On Capital At Qatar Fuel Company Q.P.S.C. (WOQOD) (DSM:QFLS) Have Hit The Brakes

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after briefly looking over the numbers, we don't think Qatar Fuel Company Q.P.S.C. (WOQOD) (DSM:QFLS) has the makings of a multi-bagger going forward, but let's have a look at why that may be.

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

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 Qatar Fuel Company Q.P.S.C. (WOQOD) is:

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

0.054 = ر.ق547m ÷ (ر.ق15b - ر.ق4.6b) (Based on the trailing twelve months to September 2025).

Therefore, Qatar Fuel Company Q.P.S.C. (WOQOD) has an ROCE of 5.4%. In absolute terms, that's a low return and it also under-performs the Oil and Gas industry average of 8.6%.

Check out our latest analysis for Qatar Fuel Company Q.P.S.C. (WOQOD)

Above you can see how the current ROCE for Qatar Fuel Company Q.P.S.C. (WOQOD) 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 Qatar Fuel Company Q.P.S.C. (WOQOD) .

What Does the ROCE Trend For Qatar Fuel Company Q.P.S.C. (WOQOD) Tell Us?

Things have been pretty stable at Qatar Fuel Company Q.P.S.C. (WOQOD), with its capital employed and returns on that capital staying somewhat the same for the last five years. This tells us the company isn't reinvesting in itself, so it's plausible that it's past the growth phase. So unless we see a substantial change at Qatar Fuel Company Q.P.S.C. (WOQOD) in terms of ROCE and additional investments being made, we wouldn't hold our breath on it being a multi-bagger.

Our Take On Qatar Fuel Company Q.P.S.C. (WOQOD)'s ROCE

In a nutshell, Qatar Fuel Company Q.P.S.C. (WOQOD) has been trudging along with the same returns from the same amount of capital over the last five years. Unsurprisingly, the stock has only gained 12% over the last five years, which potentially indicates that investors are accounting for this going forward. So if you're looking for a multi-bagger, the underlying trends indicate you may have better chances elsewhere.

One more thing, we've spotted 1 warning sign facing Qatar Fuel Company Q.P.S.C. (WOQOD) that you might find interesting.

While Qatar Fuel Company Q.P.S.C. (WOQOD) 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.