Investors Will Want Amkor Technology's (NASDAQ:AMKR) Growth In ROCE To Persist

Simply Wall St.12-09

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed...

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Amongst other things, we'll want to see two things; firstly, a growing return on capital employed...</p>\n\n<a href=\"https://finance.yahoo.com/news/investors-want-amkor-technologys-nasdaq-114911022.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":"EBIT","symbol_name":"Harbor AlphaEdge Small Cap Earners ETF","start_time":0,"source_url":"https://finance.yahoo.com/news/investors-want-amkor-technologys-nasdaq-114911022.html","article_id":"2490872131","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/bVME5zY4X.madJsOrjI1Fg--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/98479ef7e2a2339ba3575f02b13c7750"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490872131","pubTimestamp":1733744951,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. 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In absolute terms, that's a low return but it's around the Semiconductor industry average of 8.6%.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"EBIT":"Harbor AlphaEdge Small Cap Earners ETF","BK4211":"区域性银行","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","SQQQ":"纳指三倍做空ETF","ISBC":"投资者银行","BK4588":"碎股","TQQQ":"纳指三倍做多ETF","NDAQ":"纳斯达克OMX交易所","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC",".IXIC":"NASDAQ Composite","PSQ":"纳指反向ETF","AMKR":"艾马克技术公司","QLD":"纳指两倍做多ETF","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","BK4112":"金融交易所和数据","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","QID":"纳指两倍做空ETF","BK4585":"ETF&股票定投概念","BK4147":"半导体设备"},"translate_title":"投资者希望Amkor Technology（纳斯达克股票代码：AMKR）的ROCE增长持续下去","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMKR":1,".IXIC":1,"EBIT":1,"NDAQ":1,"ISBC":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Speaking of which, we noticed some great changes in Amkor Technology's (NASDAQ:AMKR) returns on capital, so let's have a look. \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 Amkor Technology is: \n Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) \n0.085 = US$462m ÷ (US$7.0b - US$1.6b) (Based on the trailing twelve months to September 2024).\n Thus, Amkor Technology has an ROCE of 8.5%.  In absolute terms, that's a low return but it's around the Semiconductor industry average of 8.6%. \n View our latest analysis for Amkor Technology \n\n\n\n  NasdaqGS:AMKR Return on Capital Employed December 9th 2024\n \n\n Above you can see how the current ROCE for Amkor Technology compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Amkor Technology  for free. \n How Are Returns Trending? \n Even though ROCE is still low in absolute terms, it's good to see it's heading in the right direction. The numbers show that in the last five years, the returns generated on capital employed have grown considerably to 8.5%. The amount of capital employed has increased too, by 60%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed. \n Our Take On Amkor Technology's ROCE \n In summary, it's great to see that Amkor Technology can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue. \n On the other side of ROCE, we have to consider valuation. That's why we have a FREE intrinsic value estimation for AMKR on our platform  that is definitely worth checking out. \n For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. \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":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","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":"4.29.3","shortVersion":"4.29.3","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/2490872131"}