MYR Group (NASDAQ:MYRG) Will Want To Turn Around Its Return Trends

Simply Wall St.11-24 22:15

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? 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://finance.yahoo.com/news/myr-group-nasdaq-myrg-want-141504407.html\">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":"FT_SY_MNQ","symbol_name":"微型NQ100指数","start_time":0,"source_url":"https://finance.yahoo.com/news/myr-group-nasdaq-myrg-want-141504407.html","article_id":"2485173791","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/kpZnHWmVXh9fa.5MJ5otJg--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/e18325c660d04f2fe88569956b7babe1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485173791","pubTimestamp":1732457704,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Did you know there are some financial metrics that can provide clues of a potential multi-bagger?One common approach is to try and find a company with returns on capital employed  that are increasing, in conjunction with a growing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after investigating MYR Group , we don't think it's current trends fit the mold of a multi-bagger.Return On Capital Employed : What Is It?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. The formula for this calculation on MYR Group is:. Return on Capital Employed = Earnings Before Interest and Tax  ÷ . Thus, MYR Group has an ROCE of 6.7%.  Ultimately, that's a low return and it under-performs the Construction industry average of 11%.While MYR Group isn't earning the highest return, che","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"QID":"纳指两倍做空ETF","BK4129":"建筑与工程","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","SQQQ":"纳指三倍做空ETF","BK4585":"ETF&股票定投概念","QLD":"纳指两倍做多ETF","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","PSQ":"纳指反向ETF","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","TQQQ":"纳指三倍做多ETF","BK4588":"碎股","NDAQ":"纳斯达克OMX交易所","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC",".IXIC":"NASDAQ Composite","EBIT":"Harbor AlphaEdge Small Cap Earners ETF","MYRG":"MYR Group","BK4112":"金融交易所和数据"},"translate_title":"MYR集团（纳斯达克：MYRG）希望扭转其回报趋势","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EBIT":1,"NDAQ":1,"MYRG":1,".IXIC":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"Did you know there are some financial metrics that can provide clues of a potential multi-bagger? 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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after investigating MYR Group (NASDAQ:MYRG), we don't think it's current trends fit the mold of a multi-bagger. \n Return On Capital Employed (ROCE): What Is It? \n 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. The formula for this calculation on MYR Group is: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.067 = US$55m ÷ (US$1.6b - US$762m) (Based on the trailing twelve months to September 2024).\n Thus, MYR Group has an ROCE of 6.7%.  Ultimately, that's a low return and it under-performs the Construction industry average of 11%. \n See our latest analysis for MYR Group \n\n\n\n  NasdaqGS:MYRG Return on Capital Employed November 24th 2024\n \n\n In the above chart we have measured MYR 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 MYR Group . \n What The Trend Of ROCE Can Tell Us \n In terms of MYR Group's historical ROCE movements, the trend isn't fantastic. To be more specific, ROCE has fallen from 8.4% over the last five years. However it looks like MYR Group might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. \n Another thing to note, MYR Group has a high ratio of current liabilities to total assets of 48%. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower. \n Our Take On MYR Group's ROCE \n In summary, MYR Group is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Investors must think there's better things to come because the stock has knocked it out of the park, delivering a 340% gain to shareholders who have held over the last five years. However, unless these underlying trends turn more positive, we wouldn't get our hopes up too high. \n One more thing, we've spotted   1 warning sign  facing MYR Group that you might find interesting. \n While MYR Group isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. \nHave 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":0},"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":"4.29.2","shortVersion":"4.29.2","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/2485173791"}