AEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital

2
Comment
1

AEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital

Simply Wall St.03-01

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

BK99
·03-15
Bull
Reply
Like
Report

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2416965010?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8211000-choice2-main-header/1585186947894","is_english":true,"pubTime":"2024-03-01 11:47","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2416965010","market":"us","top_or_hot":-1,"title":"AEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital","media":"Simply Wall St.","content":"<div>\n<p>If you're looking for a multi-bagger, there's a few things to keep an eye out for.  One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/semiconductors/sgx-awx/aem-holdings-shares/news/aem-holdings-sgxawx-could-be-struggling-to-allocate-capital\">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>AEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital</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\">\nAEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-01 11:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/semiconductors/sgx-awx/aem-holdings-shares/news/aem-holdings-sgxawx-could-be-struggling-to-allocate-capital><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you're looking for a multi-bagger, there's a few things to keep an eye out for.  One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/semiconductors/sgx-awx/aem-holdings-shares/news/aem-holdings-sgxawx-could-be-struggling-to-allocate-capital\">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":"AWX","symbol_name":"Avalon Holdings Corp","start_time":0,"source_url":"https://simplywall.st/stocks/sg/semiconductors/sgx-awx/aem-holdings-shares/news/aem-holdings-sgxawx-could-be-struggling-to-allocate-capital","article_id":"2416965010","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8211000-choice2-main-header/1585186947894"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2416965010","pubTimestamp":1709264868,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"AWX":"Avalon Holdings Corp","BK6063":"半导体设备","BK4120":"环境与设施服务","BK6515":"技术设备股","BK4585":"ETF&股票定投概念","LU0498741890.SGD":"FTIF - Franklin Gold and Precious Metals A (acc) SGD","AWX.SI":"永科","SG9999001069.SGD":"UOB UNITED ASIA PACIFIC GROWTH (SGD) ACC","LU1223082196.USD":"施罗德环球黄金A Acc","LU0496367417.USD":"富兰克林黄金和贵金属A（acc）","SG9999003461.SGD":"United Asia Pacific Infrastructure SGD","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","LU1223083913.SGD":"Schroder ISF Global Gold A Acc SGD-H","SG9999001143.SGD":"United Gold and General A Acc SGD","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","AEM":"伊格尔矿业","BK4017":"黄金","LU0498741114.HKD":"FRANKLIN GOLD & PRECIOUS METALS \"A\" (HKD) ACC"},"translate_title":"AEM控股（SGX：AWX）可能正在努力分配资本","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AWX":1,"AWX.SI":1,"AEM":1},"content_text":"If you're looking for a multi-bagger, there's a few things to keep an eye out for.  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.  Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return.    In light of that, when we looked at AEM Holdings (SGX:AWX) and its ROCE trend, we weren't exactly thrilled.     What Is Return On Capital Employed (ROCE)?  For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.  The formula for this calculation on AEM Holdings is:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.032 = S$17m ÷ (S$709m - S$178m) (Based on the trailing twelve months to December 2023). So, AEM Holdings has an ROCE of 3.2%.  In absolute terms, that's a low return and it also under-performs the Semiconductor industry average of 8.1%.   Check out our latest analysis for AEM Holdings SGX:AWX Return on Capital Employed March 1st 2024 In the above chart we have measured AEM Holdings' 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 AEM Holdings .  What Does the ROCE Trend For AEM Holdings Tell Us?  In terms of AEM Holdings' historical ROCE movements, the trend isn't fantastic.   Over the last  five years, returns on capital have decreased to 3.2% from 47%  five years ago.    And considering revenue has dropped while employing more capital, we'd be cautious.  This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - \"less bang for their buck\" per se.    What We Can Learn From AEM Holdings' ROCE  We're a bit apprehensive about AEM Holdings because despite more capital being deployed in the business, returns on that capital and sales have both fallen.       Yet despite these poor fundamentals, the stock has gained a huge 100% over the last  five years, so investors appear very optimistic.    In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.    AEM Holdings could be trading at an attractive price in other respects, so you might find our  free intrinsic value estimation for AWX  on our platform quite valuable.    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. Valuation is complex, but we're helping make it simple.Find out whether AEM Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave 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":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[{"id":284558881448040,"gmtCreate":1710478573839,"gmtModify":1710478577122,"author":{"id":"3582154836923956","authorId":"3582154836923956","name":"BK99","avatar":"https://community-static.tradeup.com/news/b5015be4f48a3c9b5f2c87b295297e50","vip":1,"crmLevel":7,"crmLevelSwitch":0},"htmlText":"Bull","listText":"Bull","text":"Bull","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/284558881448040","repostId":2416965010,"repostType":2,"repost":{"id":"2416965010","pubTimestamp":1709264868,"share":"https://www.laohu8.com/m/news/2416965010?lang=&edition=full","pubTime":"2024-03-01 11:47","market":"us","language":"en","title":"AEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital","url":"https://stock-news.laohu8.com/highlight/detail?id=2416965010","media":"Simply Wall St.","summary":"If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...","content":"<html><body><div><p> If you're looking for a multi-bagger, there's a few things to keep an eye out for.  One common approach is to try and find a company with <em>returns</em> on capital employed (ROCE) that are increasing, in conjunction with a growing <em>amount</em> of capital employed.  Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return.    In light of that, when we looked at <strong>AEM Holdings</strong> (SGX:AWX) and its ROCE trend, we weren't exactly thrilled.    </p><h2> What Is Return On Capital Employed (ROCE)? </h2><p> For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.  The formula for this calculation on AEM Holdings is: </p><p> <strong>Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)</strong> </p><p>0.032 = S$17m ÷ (S$709m - S$178m) <em>(Based on the trailing twelve months to December 2023)</em>.</p><p> So, <strong>AEM Holdings has an ROCE of 3.2%. </strong> In absolute terms, that's a low return and it also under-performs the Semiconductor industry average of 8.1%.  </p><p><span> Check out our latest analysis for AEM Holdings </span></p><figure><img height=\"316\" loading=\"lazy\" src=\"https://images.simplywall.st/asset/chart/8086209-roce-1-dark/1709264867128\" width=\"333\"/><figcaption>SGX:AWX Return on Capital Employed March 1st 2024</figcaption></figure><p> In the above chart we have measured AEM Holdings' 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 AEM Holdings . </p><h2> What Does the ROCE Trend For AEM Holdings Tell Us? </h2><p> In terms of AEM Holdings' historical ROCE movements, the trend isn't fantastic.   Over the last  five years, returns on capital have decreased to 3.2% from 47%  five years ago.    And considering revenue has dropped while employing more capital, we'd be cautious.  This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - \"less bang for their buck\" per se.   </p><h2> What We Can Learn From AEM Holdings' ROCE </h2><p> We're a bit apprehensive about AEM Holdings because despite more capital being deployed in the business, returns on that capital and sales have both fallen.       Yet despite these poor fundamentals, the stock has gained a huge 100% over the last  five years, so investors appear very optimistic.    In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.   </p><p> AEM Holdings could be trading at an attractive price in other respects, so you might find our <strong> free intrinsic value estimation for AWX </strong> on our platform quite valuable.   </p><p> For those who like to invest in <strong>solid companies,</strong> check out this <strong>free</strong> list of companies with solid balance sheets and high returns on equity. </p><div><h3>Valuation is complex, but we're helping make it simple.</h3><p>Find out whether AEM Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes <strong>fair value estimates, risks and warnings, dividends, insider transactions and financial health.</strong></p>View the Free Analysis</div><p><strong>Have feedback on this article? Concerned about the content?</strong> <strong>Get in touch</strong><strong> with us directly.</strong><i> Alternatively, email editorial-team (at) simplywallst.com.</i><i>This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</i></p></div></body></html>","source":"simplywall_highlight","collect":0,"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>AEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital</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\">\nAEM Holdings (SGX:AWX) Could Be Struggling To Allocate Capital\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-01 11:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/semiconductors/sgx-awx/aem-holdings-shares/news/aem-holdings-sgxawx-could-be-struggling-to-allocate-capital><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you're looking for a multi-bagger, there's a few things to keep an eye out for.  One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/semiconductors/sgx-awx/aem-holdings-shares/news/aem-holdings-sgxawx-could-be-struggling-to-allocate-capital\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://images.simplywall.st/asset/industry/8211000-choice2-main-header/1585186947894","relate_stocks":{"AWX":"Avalon Holdings Corp","BK6063":"半导体设备","BK4120":"环境与设施服务","BK6515":"技术设备股","BK4585":"ETF&股票定投概念","LU0498741890.SGD":"FTIF - Franklin Gold and Precious Metals A (acc) SGD","AWX.SI":"永科","SG9999001069.SGD":"UOB UNITED ASIA PACIFIC GROWTH (SGD) ACC","LU1223082196.USD":"施罗德环球黄金A Acc","LU0496367417.USD":"富兰克林黄金和贵金属A（acc）","SG9999003461.SGD":"United Asia Pacific Infrastructure SGD","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","LU1223083913.SGD":"Schroder ISF Global Gold A Acc SGD-H","SG9999001143.SGD":"United Gold and General A Acc SGD","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","AEM":"伊格尔矿业","BK4017":"黄金","LU0498741114.HKD":"FRANKLIN GOLD & PRECIOUS METALS \"A\" (HKD) ACC"},"source_url":"https://simplywall.st/stocks/sg/semiconductors/sgx-awx/aem-holdings-shares/news/aem-holdings-sgxawx-could-be-struggling-to-allocate-capital","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2416965010","content_text":"If you're looking for a multi-bagger, there's a few things to keep an eye out for.  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.  Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return.    In light of that, when we looked at AEM Holdings (SGX:AWX) and its ROCE trend, we weren't exactly thrilled.     What Is Return On Capital Employed (ROCE)?  For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.  The formula for this calculation on AEM Holdings is:  Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.032 = S$17m ÷ (S$709m - S$178m) (Based on the trailing twelve months to December 2023). So, AEM Holdings has an ROCE of 3.2%.  In absolute terms, that's a low return and it also under-performs the Semiconductor industry average of 8.1%.   Check out our latest analysis for AEM Holdings SGX:AWX Return on Capital Employed March 1st 2024 In the above chart we have measured AEM Holdings' 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 AEM Holdings .  What Does the ROCE Trend For AEM Holdings Tell Us?  In terms of AEM Holdings' historical ROCE movements, the trend isn't fantastic.   Over the last  five years, returns on capital have decreased to 3.2% from 47%  five years ago.    And considering revenue has dropped while employing more capital, we'd be cautious.  This could mean that the business is losing its competitive advantage or market share, because while more money is being put into ventures, it's actually producing a lower return - \"less bang for their buck\" per se.    What We Can Learn From AEM Holdings' ROCE  We're a bit apprehensive about AEM Holdings because despite more capital being deployed in the business, returns on that capital and sales have both fallen.       Yet despite these poor fundamentals, the stock has gained a huge 100% over the last  five years, so investors appear very optimistic.    In any case, the current underlying trends don't bode well for long term performance so unless they reverse, we'd start looking elsewhere.    AEM Holdings could be trading at an attractive price in other respects, so you might find our  free intrinsic value estimation for AWX  on our platform quite valuable.    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. Valuation is complex, but we're helping make it simple.Find out whether AEM Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave 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.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":2,"commentSize":0,"repostSize":1,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}