The Returns At U-Haul Holding (NYSE:UHAL) Aren't Growing

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. 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 investigating U-Haul Holding (NYSE:UHAL), we don't think it's current trends fit the mold of a multi-bagger.

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Understanding Return On Capital Employed (ROCE)

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 U-Haul Holding is:

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

0.034 = US$677m ÷ (US$21b - US$942m) (Based on the trailing twelve months to June 2025).

So, U-Haul Holding has an ROCE of 3.4%. In absolute terms, that's a low return and it also under-performs the Transportation industry average of 9.7%.

View our latest analysis for U-Haul Holding

Above you can see how the current ROCE for U-Haul Holding compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for U-Haul Holding .

So How Is U-Haul Holding's ROCE Trending?

There are better returns on capital out there than what we're seeing at U-Haul Holding. The company has consistently earned 3.4% for the last five years, and the capital employed within the business has risen 60% in that time. Given the company has increased the amount of capital employed, it appears the investments that have been made simply don't provide a high return on capital.

Our Take On U-Haul Holding's ROCE

In summary, U-Haul Holding has simply been reinvesting capital and generating the same low rate of return as before. Unsurprisingly, the stock has only gained 39% over the last five years, which potentially indicates that investors are accounting for this going forward. Therefore, if you're looking for a multi-bagger, we'd propose looking at other options.

One final note, you should learn about the 3 warning signs we've spotted with U-Haul Holding (including 2 which shouldn't be ignored) .

While U-Haul Holding may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

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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.