GEA Group (ETR:G1A) has been making waves in the stock market with its impressive returns on capital employed (ROCE). ROCE is a key metric that measures the amount of pre-tax profits a company can generate from the capital employed in its business. In the case of GEA Group, they have an ROCE of 14%, which is significantly higher than the industry average of 11%.
What sets GEA Group apart is its trend of increasing ROCE over the years. While the company has kept its capital employed relatively flat, the ROCE has climbed an impressive 107% in the last five years. This indicates that GEA Group is becoming more efficient at generating returns and is reaping the benefits of its past investments.
Investors have taken notice of GEA Group’s performance, with a respectable 73% return for those who held the stock over the last five years. This positive trend in ROCE and earnings growth has sparked interest in the company’s potential for further growth.
However, before making any investment decisions, it’s important to consider the current share price and estimated value of GEA Group. Conducting further due diligence and analyzing the company’s fundamentals can provide valuable insights for investors looking to capitalize on the stock’s potential for long-term growth.
Overall, GEA Group’s strong performance in ROCE and earnings growth make it a compelling stock to watch for investors seeking opportunities in the market. With a promising outlook and positive trends, GEA Group is definitely a stock worth keeping an eye on.