The Motley Fool

SEPTEMBER 9, 2023

Best-in-class profitability Home to over 100 brands sold in 80 countries, Hershey has a proven track record of generating healthy returns on invested capital as it expanded across the United States in its younger years and globally more recently.

Return On Investment 246

Return On Investment Capital Debt Shareholders 246

The Motley Fool

OCTOBER 19, 2024

Trust in superior capital allocation Capital allocation in the oil space can be difficult because a company's survival is often prioritized over shareholder profits. That is, they acquire all sorts of additional assets that may not have the same return profile as the original well -- potentially squandering the original golden goose.

Leveraging 246

Leveraging Shareholders Debt Capital 246

The Motley Fool

OCTOBER 8, 2023

The oil industry is extremely capital-intensive. Producers must stay ahead of this decline by reinvesting capital into new wells and related infrastructure. Some producers earn higher returns on their reinvested capital dollars than rivals. That's evident in ExxonMobil's long-term investment strategy.

Shareholders 245

Shareholders Debt Capital Taxes 245

The Motley Fool

NOVEMBER 12, 2023

billion through 2026 on new RNG facilities, Waste Management aims to generate an additional $450 million in free cash flow (FCF) annually once its capital expenditures (capex) start paying off. WM Return on Invested Capital data by YCharts Measuring the company's profitability to its debt and equity, Waste Management's 10.5%

Enterprise Values 244

Enterprise Values Amortization Depreciation Earnings Before Interest 244

The Motley Fool

AUGUST 6, 2023

In investing circles, Bill Ackman is a prominent figure. He's the founder of hedge fund Pershing Square Capital Management. The winner is: Alphabet That's right, the only AI-related stock held in Pershing Square Capital's ultra-concentrated portfolio is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Image source: Getty Images.

Securities and Exchange Commission (SEC) 246

Securities and Exchange Commission (SEC) Stakes Hedge Funds Investing 246

The Motley Fool

DECEMBER 16, 2023

Requiring a 15% annualized return for five years, an investment needs to slightly outperform the market's historical annualized total return of roughly 11% to 12% to accomplish this feat. United Parcel Service (NYSE: UPS) and Murphy USA (NYSE: MUSA) are two companies that fit this simple billing.

Mergers and Acquisitions 245

Mergers and Acquisitions Accounting Capital Return On Investment 245

The Motley Fool

AUGUST 25, 2024

This allows it to make investments even as competing capital dries up. For example, the company made a $5 billion investment in Goldman Sachs at the lowest point of the crisis, with incredibly advantageous terms. Like Berkshire, the company has a long history of prudent capital allocation.

Hedge Funds 246

Hedge Funds Leveraging Capital Banks 246

Clearlake Capital Group

MARCH 12, 2025

together with its affiliates, “Clearlake”) and Insight Partners (Insight), announced today that it has been acquired by Gemspring Capital. Appriss Retails performance-improvement solutions yield measurable results with a significant return on investment.

Capital 45

Capital Startups Legal Assets 45

The Motley Fool

SEPTEMBER 1, 2024

In the past decade, Home Depot has averaged a higher operating margin and return on invested capital than Lowe's. Returning capital to shareholders Lowe's is a mature business. The company invests cash in opening new stores or other initiatives, like enhancing the supply chain or omnichannel capabilities.

Shareholders 246

Shareholders Capital Returns Return On Investment 246

The Motley Fool

DECEMBER 24, 2023

Ares Capital Ares Capital (NASDAQ: ARCC) ranks as the largest publicly traded business development company (BDC). To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends. Can Ares Capital sustain its dividend at such an ultra-high level? I think so.

Capital 239

Capital Business Development Companies Taxes Shareholders 239

The Motley Fool

APRIL 21, 2024

As a critical "picks and shovels" provider to this burgeoning market, Sportradar looks well-positioned to capitalize on this undeniable megatrend. This three-sided network leaves Sportradar well-positioned to capitalize on various network effects as it grows stronger with each new betting operator, sports league, or media company that joins.

Initial Public Offering 246

Initial Public Offering Capital Public Companies Shareholders 246

The Motley Fool

JULY 4, 2023

Both businesses are capital-intensive. billion into capital improvements. wireless industry, Verizon and T-Mobile , and a combination of high capital intensity and network effects makes it unlikely another competitor will emerge. Cash return on invested capital, or CROIC, is about 6.5%

Debt 245

Debt Capital Return On Investment Stock Market 245

The Motley Fool

NOVEMBER 27, 2023

ITW Return on Invested Capital data by YCharts. The company has prudently acquired companies over the years (more than two dozen acquisitions), steadily increasing its return on invested capital (ROIC). TTM = trailing 12 months. Strong management sets the company apart from many of its peers.

Conglomerates 246

Conglomerates Amortization Depreciation Earnings Before Interest 246

The Motley Fool

JULY 14, 2024

It doesn't have a great track record for investing its capital efficiently As an investor, it's important to know whether a business is going to make good use of the capital it has on hand, as well as the capital it can draw on in the form of debt and shareholders' equity.

Bidding 246

Bidding Assets Capital Debt 246

The Motley Fool

FEBRUARY 14, 2024

However, after posting total returns of over 5,000% since the turn of the millennium, the company certainly qualifies. Despite this incredible run, Badger Meter remains a relatively small enterprise with a market capitalization of just $4 billion. BMI Return on Invested Capital data by YCharts.

Capital 246

Capital Accounting Debt Return On Investment 246

The Motley Fool

NOVEMBER 26, 2023

We can measure Toro's ability to successfully integrate its acquisitions by using return on invested capital (ROIC) as our measuring stick. Comparing a company's profitability to its debt and equity, ROIC highlights how efficiently a company deploys its capital -- or, in Toro's case, how well it makes its acquisitions.

Capital 244

Capital Debt Return On Investment Returns 244

The Motley Fool

SEPTEMBER 24, 2024

This rising return on invested capital (ROIC) is essential to investors as it shows the company is improving its ability to generate profits from its debt and equity -- a feat that frequently leads to a stock outperforming. TNC Net Profit Margin and ROIC data by YCharts. remains near 10-year highs.

Mergers and Acquisitions 246

Mergers and Acquisitions Debt Return On Investment Capital 246

The Motley Fool

OCTOBER 29, 2024

billion of cash flow this year and have reached a key financial milestone while returning to a fully unsecured capital structure that will support our growth ambitions and expanding capital allocation. And this quarter, we reached a key financial milestone by returning to a fully unsecured capital structure.

Leveraging 130

Leveraging Capital Debt Shareholders 130

The Motley Fool

DECEMBER 26, 2023

That's because whatever a stock may do in the near term or whatever its current valuation multiple, Munger taught us that over a long time period, stocks tend to return close to the return on capital of the underlying business. After all, Microsoft was the largest company in the world in the year 2000. lots of room to grow.

Capital 246

Capital Return On Investment Returns Shareholders 246

The Motley Fool

JUNE 21, 2023

Over time, stocks with growing dividends and high returns on invested capital (ROICs) have tended to outperform their peers. By highlighting these qualities -- plus a payout ratio below 50% -- investors can create a stocked pond to fish in and perhaps find the next investing lunker.

Accounting 241

Accounting Return On Investment Capital Funds 241

The Motley Fool

JUNE 13, 2024

During the company's annual meeting, Buffett told investors that the company's capital-allocation decisions would be left to Abel, currently CEO of Berkshire Hathaway Energy and vice chair of its non-insurance operations. In addition, Berkshire Hathaway has Todd Combs, 53, and Ted Weschler, 62, as two of its top investing lieutenants.

Hedge Funds 246

Hedge Funds Conglomerates Capital Returns 246

The Motley Fool

FEBRUARY 5, 2024

Diageo is quickly shifting its portfolio to capitalize on the growth levers listed above, including adding 11 net new super premium and premium brands through mergers and acquisitions (M&A) while disposing of 49 standard and value labels.

Mergers and Acquisitions 244

Mergers and Acquisitions Capital Debt Return On Investment 244

The Motley Fool

MARCH 17, 2024

The industry's long-term issue comes down to its inability to generate a return on capital necessary to cover its cost of capital. But it's not bad news for debt providers because they have been rewarded for putting up capital, with their investment backed up by a relatively liquid asset, the airplanes themselves.

Debt 240

Debt Leveraging Amortization Depreciation 240

The Motley Fool

SEPTEMBER 7, 2024

This dynamic has favored both retailers, allowing Home Depot to generate wide operating margins and high returns on invested capital. It had a trailing 12-month return on invested capital ( ROIC ) of 31.9%, which was down from 41.5%

Taxes 238

Taxes Debt Return On Investment Stock Market 238

The Motley Fool

APRIL 30, 2024

Steady profitability, a rising dividend, and a once-in-a-decade valuation Zoetis' history of successful research and development (R&D) can clearly be seen in its consistently improving return on invested capital (ROIC) , which recently hit 20%.

Debt 244

Debt Return On Investment Capital Returns 244

The Motley Fool

NOVEMBER 18, 2024

The capital expenditure (capex) of these companies rose sharply over the last year, with much of it flowing into Nvidia's coffers. As AMD and others try to keep pace, Nvidia can deploy this capital to outspend its competition significantly on, say, more R&D or poaching talent. The trend will likely continue.

Shareholders 246

Shareholders Capital Return On Investment Returns 246

The Motley Fool

APRIL 23, 2024

Oil and gas is capital intensive, and so is investing in AI. Exxon dedicates tens of billions yearly on capital expenditures to expand production and boost refinery outputs. Meanwhile, Nvidia must develop new chips that it won't see a return on for years. NVDA net total long-term debt (quarterly) data by YCharts.

Debt 242

Debt Shareholders Capital Banks 242

The Motley Fool

FEBRUARY 12, 2024

ET on Monday after Northland Capital Markets analyst Nehal Chokshi raised his price target on Supermicro stock by nearly 50%. Shares of Super Micro Computer (NASDAQ: SMCI) , a provider of high-performance server solutions for the artificial intelligence (AI) industry , were up by around 5% as of 1:30 p.m. Is Supermicro stock a buy?

Capital 245

Capital Return On Investment Returns Investors 245

The Motley Fool

OCTOBER 8, 2023

ALLE Return on Invested Capital data by YCharts. This outsize profitability is ultimately the secret sauce that enables the company to be the steady dividend grower it is today, providing abundant net income that can be returned to shareholders or used to make acquisitions. Why buy now?

Buyout 246

Buyout Return On Investment Shareholders Capital 246

The Motley Fool

NOVEMBER 20, 2024

But, with capital expenditures (capex) rising 77% compared to Q3 2023, this declining profitability isn't an indictment on MercadoLibre stock, in my opinion. MELI Return on Invested Capital data by YCharts.

Initial Public Offering 230

Initial Public Offering Prospects Capital Return On Investment 230

The Motley Fool

JULY 3, 2023

The airline expects to earn more than $7 per share in 2024, generating free cash flow of more than $4 billion and a return on invested capital in the mid-teens. CEO Ed Bastian sounded a cautious tone during the presentation, saying paying down debt will continue to be Delta's priority use for surplus capital.

Debt 246

Debt Capital Return On Investment Returns 246

The Motley Fool

JANUARY 13, 2024

Meanwhile, new artificial intelligence (AI) technologies have the power to improve targeting and return on investment for advertisers. The company offers a cloud-based, self-serve platform for ad agencies and brands to manage digital ad campaigns and maximize their return on investment.

Leveraging 244

Leveraging Return On Investment Capital Returns 244

The Motley Fool

MAY 9, 2024

First, it ranks as one of the largest property and casualty insurers in the world, meaning it consistently collects substantial capital (in the form of premiums) that can be invested into stocks and bonds. Second, CEO Warren Buffett has demonstrated his ability to earn excellent returns on invested capital.

Portfolios 246

Portfolios Investing Capital Shareholders 246

The Motley Fool

OCTOBER 5, 2024

The capital-intensive nature of Carnival's operations is also not a favorable trait. This is evidenced by the company's extremely low return on invested capital (ROIC). To be fair, this balance has been coming down steadily. But it puts the business in a precarious situation with almost no margin for error.

Debt 246

Debt Shareholders Capital Returns 246

The Motley Fool

FEBRUARY 26, 2024

Three examples are businesses with consistently growing dividend payments and a low payout ratio, steady share repurchases, and a high and rising return on invested capital. Particular financial metrics have been proven to indicate market-beating potential when analyzing stocks.

Shareholders 211

Shareholders Return On Investment Capital Debt 211

The Motley Fool

JUNE 10, 2024

These chips cost over $40,000 each, giving you an idea of Meta's astronomical investment in AI. Management has guided for capital expenditures in 2024 to fall between $35 billion and $40 billion. However, the business is investing tens of billions of dollars with a track record of generating outstanding returns on its capital.

Capital 236

Capital Returns Return On Investment Investors 236

The Motley Fool

JULY 2, 2023

A stellar return on invested capital Leveraging the power of its leadership position in the pool supplies and pool-related products market, Pool Corp. However, despite these short-term struggles, history may suggest that buying Pool right now could be a good long-term decision. Let's explore three key reasons why.

Shareholders 239

Shareholders Leveraging Debt Return On Investment 239