Are you trying to identify the next profitable multi-bagger company shares to invest? Well, there are a few key trends that you need to look to identify the next big stock market hit without a miss. Typically, try to notice a market trend that keeps a consistent growth of its return on capital employed or ROCE. Alongside that, check how the company is expanding concerning its base of capital employed. This is a great way to find company shares that you can continually reinvest to generate higher returns in the future. In light of that, Ardagh Group SA (NYSE: ARD at https://www.webull.com/quote/nyse-ard) and its latest ROCE trend are pretty impressive!
Current ARD ROCE (Return On Capital Employed):
The financial ratio of the Return on Capital Employed is information about the company’s profitability and current capital efficiency. Just to clarify, ROCE is a metric to understand and evaluate how much profits a company makes as per its pre-tax income. If you want to calculate the current ROCE for Ardagh Group (NYSE: ARD), use this simple mathematical formula:
ROCE = Company EBIT (Earnings Before Interest and Tax) divided by (Total Company Assets – Current Liabilities)
Based on the current data, ARD’s EBIT is USD 495 Million; the value of its assets is USD 9.2 Billion, and its current liabilities value is USD 2.2 Billion. That means Ardagh Group SA has a ROCE value of 0.071 or 7.1%. As this value represents lower company returns,ARD is currently underperforming in the packaging industry with an average of 9.7%.
NYSE: ARD current stock value:
On 14 August, Ardagh Group SA (NYSE: ARD) stock price went down at 15.20 USD by the rate of -0.39%. It opened trading on 14th August with a value of 15.11 USD and had the highest pick at 15.52 while the lowest pick was at 15.10. As a result, the ARD stock value went pretty low as compared to the previous weeks. Ardagh Group SA now holds a total market capitalization of USD 3.59 Billion. With a 2.58 P/E Ratio, its dividend yield is stable at a 3.95% rate. Its 52-week high value is at 21.54 and 52 weeks low value is at 9.20.
What to learn from the ARD ROCE Trend?
The ROCE of NYSE: ARD remained mostly flat over the last five years. It has likely passed that stable phase recently. Unless you see a noticeable change at Ardagh Group’s ROCE value, don’t make additional investment plans. In summary, ARD isn’t compounding its company earnings but is generating consistent returns on the same ROCE. Now, as because the stocks of ARD have fallen recently, many investors are hesitant. So, decide carefully! You can buy the stock share at online brokerage.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.