Returns on Capital Paint A Bright Future For White Pearl Technology Group (STO:WPTG B)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. And in light of that, the trends we're seeing at White Pearl Technology Group's (STO:WPTG B) look very promising so lets take a look.

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Understanding Return On Capital Employed (ROCE)

For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for White Pearl Technology Group:

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

0.28 = kr57m ÷ (kr242m - kr39m) (Based on the trailing twelve months to March 2025).

So, White Pearl Technology Group has an ROCE of 28%. That's a fantastic return and not only that, it outpaces the average of 11% earned by companies in a similar industry.

Check out our latest analysis for White Pearl Technology Group

Above you can see how the current ROCE for White Pearl Technology Group 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 White Pearl Technology Group .

How Are Returns Trending?

The trends we've noticed at White Pearl Technology Group are quite reassuring. The numbers show that in the last one year, the returns generated on capital employed have grown considerably to 28%. The amount of capital employed has increased too, by 59%. So we're very much inspired by what we're seeing at White Pearl Technology Group thanks to its ability to profitably reinvest capital.

The Bottom Line On White Pearl Technology Group's ROCE

To sum it up, White Pearl Technology Group has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And a remarkable 374% total return over the last year tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.

If you want to know some of the risks facing White Pearl Technology Group we've found 4 warning signs (1 is potentially serious!) that you should be aware of before investing here.

If you want to search for more stocks that have been earning high returns, check out this free list of stocks with solid balance sheets that are also earning 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.