Simply Wall Street considers Muehlhan AG (ETR: M4N) an attractive investment because of its impressive performance in the market, as well as its financial track record. M4N has shown great resilience by exhibiting a 46% growth in the past year. This exceeds its average annual growth encompassing 5 years of its performance. Aside from outperforming its own records, the company has also surpassed the construction industry expansion with a 15% increase in earnings.
According to Simply Wall Street’s profile of M4N, the company has a 48 million-euro market cap. It also shows a 0.67 volatility relative to the market.
9.7% Returns of Capital
Yahoo Finance studies the viability of the company as a great investment. In doing so, it looked at M4N’s Return On Capital Employed (ROCE), which is the measure of the capital returns of the company before taxes. According to their computation M4N has a ROCE of 9.7%, which is an improvement over its ROCE three years ago, amounting to 5.7%.
Compared to other companies’ ROCE, M4N’s is satisfactory. Meanwhile, this figure is close to the industry average of 12%.
When studied side by side with its current liabilities, it appears that its assets and liabilities increase its ROCE. With a total asset of 155 million euros and current liabilities amounting to 76 million euros, the company shows a middling ratio between assets and liabilities.
Yahoo Finance reminds readers that the returns on capital employed is an indicator of past performance and is not a prediction of future performance.