17LIVE Group (SGX:LVR) Shareholders Will Want The ROCE Trajectory To Continue

Simply Wall St.08-10

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is to try and find a company with returns on capital employed (ROCE) that are ...

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One common approach is to try and find a company with returns on capital employed (ROCE) that are ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/media/sgx-lvr/17live-group-shares/news/17live-group-sgxlvr-shareholders-will-want-the-roce-trajecto\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>17LIVE Group (SGX:LVR) Shareholders Will Want The ROCE Trajectory To Continue</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n17LIVE Group (SGX:LVR) Shareholders Will Want The ROCE Trajectory To Continue\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-10 06:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/media/sgx-lvr/17live-group-shares/news/17live-group-sgxlvr-shareholders-will-want-the-roce-trajecto><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>To find a multi-bagger stock, what are the underlying trends we should look for in a business?  One common approach is to try and find a company with returns on capital employed (ROCE) that are ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/media/sgx-lvr/17live-group-shares/news/17live-group-sgxlvr-shareholders-will-want-the-roce-trajecto\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EBIT","symbol_name":"Harbor AlphaEdge Small Cap Earners ETF","start_time":0,"source_url":"https://simplywall.st/stocks/sg/media/sgx-lvr/17live-group-shares/news/17live-group-sgxlvr-shareholders-will-want-the-roce-trajecto","article_id":"2458520522","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4313000-choice2-main-header/1585186808281"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2458520522","pubTimestamp":1723243912,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"EBIT":"Harbor AlphaEdge Small Cap Earners ETF","BK6030":"电影和娱乐","LVR.SI":"17LIVE GROUP"},"translate_title":"17LIVE Group(SGX：LVR)股东希望ROCE轨迹继续下去","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EBIT":1,"LVR.SI":1},"content_text":"To find a multi-bagger stock, what are the underlying trends we should look for in a business?  One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed.  Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return.    So when we looked at 17LIVE Group (SGX:LVR) and its trend of ROCE, we really liked what we saw.     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.  To calculate this metric for 17LIVE Group, this is the formula:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.15 = US$14m ÷ (US$164m - US$70m) (Based on the trailing twelve months to December 2023). So, 17LIVE Group has an ROCE of 15%.  On its own, that's a standard return, however it's much better than the 7.1% generated by the Entertainment industry.   View our latest analysis for 17LIVE Group SGX:LVR Return on Capital Employed August 9th 2024 In the above chart we have measured 17LIVE Group's prior ROCE against its prior performance, but the future is arguably more important.  If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for 17LIVE Group .  What The Trend Of ROCE Can Tell Us  The fact that 17LIVE Group is now generating some pre-tax profits from its prior investments is very encouraging.  About  five years ago the company was generating losses but things have turned around because it's now earning 15% on its capital.  In addition to that, 17LIVE Group is employing 129% more capital than previously which is expected of a company that's trying to break into profitability.  This can tell us that the company has plenty of reinvestment opportunities that are able to generate higher returns.     In another part of our analysis, we noticed that the company's ratio of current liabilities to total assets decreased to 43%, which broadly means the business is relying less on its suppliers or short-term creditors to fund its operations.  So shareholders would be pleased that the growth in returns has mostly come from underlying business performance.   Nevertheless, there are some potential risks the company is bearing with current liabilities that high, so just keep that in mind.      What We Can Learn From 17LIVE Group's ROCE  To the delight of most shareholders, 17LIVE Group has now broken into profitability.       However the stock is down a substantial 80% in the last year so there could be other areas of the business hurting its prospects.  Regardless, we think the underlying fundamentals warrant this stock for further investigation.     On a separate note, we've found   2 warning signs for 17LIVE Group   you'll probably want to know about.     If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2458520522"}