Ocean Sky International (Catalist:1B6) Might Have The Makings Of A Multi-Bagger
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Ocean Sky International:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.023 = S$1.3m ÷ (S$67m - S$11m) (Based on the trailing twelve months to December 2024).
Therefore, Ocean Sky International has an ROCE of 2.3%. Ultimately, that's a low return and it under-performs the Construction industry average of 9.1%.
See our latest analysis for Ocean Sky International
While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of Ocean Sky International.
We're delighted to see that Ocean Sky International is reaping rewards from its investments and has now broken into profitability. While the business was unprofitable in the past, it's now turned things around and is earning 2.3% on its capital. Interestingly, the capital employed by the business has remained relatively flat, so these higher returns are either from prior investments paying off or increased efficiencies. That being said, while an increase in efficiency is no doubt appealing, it'd be helpful to know if the company does have any investment plans going forward. After all, a company can only become a long term multi-bagger if it continually reinvests in itself at high rates of return.
To bring it all together, Ocean Sky International has done well to increase the returns it's generating from its capital employed. And since the stock has fallen 33% over the last five years, there might be an opportunity here. So researching this company further and determining whether or not these trends will continue seems justified.
If you want to continue researching Ocean Sky International, you might be interested to know about the 2 warning signs that our analysis has discovered.
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.
—
Investing narratives with Fair Values
Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor
Fair Value Estimated: A$22.83 · 0.1% Overvalued
Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor
Fair Value Estimated: €14.40 · 0.3% Overvalued
Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor
Fair Value Estimated: $384.84 · 0.2% Overvalued
View more featured narratives
—
Have 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
18 minutes ago
- Business Insider
Anduril CEO Palmer Luckey's new digital banking startup set to be valued at $2 billion, sources say
Anduril cofounder and CEO Palmer Luckey is launching another startup with a "Lord of the Rings"-inspired name. It already has a hefty price tag. Erebor, a digital bank aimed at startups and cryptocurrency companies, which might sound a little like the infamous Silicon Valley Bank, is raising at least $225 million at a $2 billion valuation, according to people familiar with the deal. Founders Fund, the venture firm run by Palantir cofounder Peter Thiel, and 8VC, led by fellow Palantir cofounder Joe Lonsdale, are investing in the company, the people who weren't authorized to speak publicly on the matter said. The fundraise is ongoing, and details could still change. 8VC, Founders Fund and Palmer Luckey did not respond to requests for comment. Erebor — like Luckey's Anduril as well as Lonsdale and Thiel's Palantir — takes its name from JRR Tolkien's "The Lord of the Rings." In the book, Erebor is the "Lonely Mountain," a kingdom known for its treasure. The startup recently applied for a US bank charter that would let it operate as a regulated bank. It plans to provide services such as crypto-collateralized lending to startups and crypto clients, according to documents viewed by Business Insider. Luckey founded Erebor. Jacob Hirshman, who previously worked at stablecoin issuer Circle, and Owen Rapaport, who cofounded now-acquired crypto-monitoring company Aer Compliance, will lead the bank as co-CEOs, the documents said. Mike Hagedorn, previously senior executive vice president and chief financial officer of Valley National Bank, will be the startup's president, according to his LinkedIn. Hirshman declined to comment. Rapaport and Hagedorn did not respond to requests for comment. Luckey is also the CEO of Anduril Industries, a defense tech giant he cofounded in 2017 that raised $2.5 billion at a $30.5 billion valuation in June. He also founded virtual reality company Oculus in 2012 at 19 years old and sold it to Facebook, now Meta Platforms, for $2 billion two years later. In 2016, Luckey was fired from Meta after donating $10,000 to a pro-Donald Trump meme group. (Meta and CEO Mark Zuckerberg have denied that Luckey left over his politics, and the two teamed up again in May, announcing an Anduril-Meta US military partnership.) Both Lonsdale and Thiel — who lead the venture firms backing Erebor — have supported President Trump. Thiel contributed over $1 million to pro-Trump super PACs and his 2016 campaign, according to the New York Times. Lonsdale has backed the America PAC, which supported Trump's 2024 reelection campaign, the Financial Times reported. In the first few months of his second term, Trump made moves to support the crypto industry, like creating a strategic bitcoin reserve and appointing venture capitalist David Sacks as Crypto Czar. And Wall Street interest in crypto is on the rise after Circle's IPO in June. Shares in Circle are up over 113% since its public market debut as of the Wednesday close.
CNBC
18 minutes ago
- CNBC
Here's what powered the stock market higher during its short and sweet record week
Short and sweet: That was this week's stock market in a nutshell. The second half of the year kicked off in record style, with both the S & P 500 and the Nasdaq closing at multiple all-time highs, including in Thursday's holiday-shortened session. The U.S. stock market is closed on Friday for the Fourth of July. Extending its stunning comeback from its April sell-off, Club stock Nvidia broke all kinds of records this week as its market value topped $3.9 trillion on Thursday. It ended the day up 1.3% at $159.34 a share, good for a $3.89 trillion market cap. To fully appreciate the current bullishness on Wall Street, we have to look back on the volatile second quarter in the market, which ended Monday. Considering the Nasdaq lost over 12% in the first week of the quarter on President Donald Trump's "reciprocal" tariff announcement, it was incredible to see the tech-heavy index close out the April-to-June period with a 17.75% gain. That was the Nasdaq's best quarterly performance since the early days of Covid, when it gained over 30% in the second quarter of 2020, as the Federal Reserve cut interest rates to zero and pumped money into the economy to prevent economic Armageddon from the pandemic. The S & P 500, meanwhile, advanced 10.57% in this year's second quarter, recovering from a greater-than-11% decline in the first week of April. The board market index saw its best quarter since Q4 of 2023, when it gained 11.24%. Eight out of the 11 sectors advanced in the April-to-June period, with technology leading the way with 23.5% gain. The worst performing sector was energy, which lost 9.37% in Q2, its worst quarter since Q3 of 2020. The bulk of the losses in energy came in the waning days of the second quarter when oil prices tanked following the U.S. bombing of three Iranian nuclear sites. The market deemed the U.S. involvement in the Israel-Iran conflict as a non-systemic risk and West Texas Intermediate crude sank nearly 9% for the quarter. In the absence of any major headlines out of the Mideast and Trump's Wednesday announcement of a framework for a trade deal with Vietnam, the S & P 500 and Nasdaq each advanced for the week, up 1.7% and 1.6%, respectively. Capitol Hill is on the precipice of delivering the president a major legislative victory, with the final passage of the "big, beautiful bill" of spending priorities and tax cuts expected soon after clearing a key procedural vote in the House . Ironically, a strong jobs report Thursday cut both ways for the president. On the one hand, more hiring and a lower unemployment rate shows the resiliency of the economy in the face of the tariff and geopolitical uncertainty. That was a win for Trump. But on the other hand, strength in the economy weakens the president's argument for immediate Federal Reserve interest rates cuts. In fact, on the eve of the government's June employment report and following a much weaker-than-expected ADP private-sector jobs reading, the president posted on social media that Fed Chairman Jerome Powell should resign. Trump was quiet on the rate front on Thursday. That's because payrolls for last month grew by 147,000, much more than the Dow Jones estimate for 110,000. The nation's unemployment rate in June dipped to 4.1% when a slight uptick to 4.3% had been expected. To be sure, much of that unemployment rate decline can be attributed to fewer people working or looking for jobs. Average hourly earnings for last month increased by a less-than-expected 3.7% versus the year0ago period and were below the 3.8% gain seen in May. This week, we got positive updates from the banks, which were free to update capital allocation plans following the conclusion of the Fed's stress tests. Club holdings Goldman Sachs and Wells Fargo were the two standout winners this year, and both of them increased their dividends . Goldman hiked its quarterly payout by 33% to $4 per share. Wells Fargo boosted its dividend 12.5% to 45 cents per share. For Wells, the stress test was just one more bit of good news since the 2018 Fed-imposed $1.95 trillion asset cap was lifted early last month. Another positive update within the portfolio came Monday when Jim Cramer interviewed Amazon CEO Andy Jassy on "Mad Money." In the wide-ranging interview, Jassy clearly laid out the massive opportunity he sees in artificial intelligence, as well its long-term bets such as its Project Kuiper satellite internet service. Jim is optimistic that Kuiper could eventually help Amazon's Prime program add more members. The interview came ahead of the company's first-ever four-day Prime Day, which kicks off Tuesday and goes to Friday. Over at Meta Platforms, we learned more about CEO Mark Zuckerberg's "superintelligence" ambitions, as he authored a memo to employees explaining the new internal structure for AI research at the company. As we wrote in an analysis piece Tuesday, Zuckerberg's costly push to hire the best and brightest AI minds hasn't cost Meta stock yet because investors believe the payoff will be worth it. Home Depot , meanwhile, announced that Monday that it would acquire GMS, a building materials distributor that specializes in products such as drywall, steel studs and insulation. Including debt, the deal gives GMS an enterprise valuation of $5.5 billion. While we understand Home Depot's desire to push further into the world of professional contractors — building on last year's pricey takeover of SRS Distribution — Jim said he wishes the money spent on GMS was instead spent repurchasing stock because he believes Home Depot shares are considerably undervalued. Finally, the S & P Short Range Oscillator ended Thursday's session even further into overbought territory at 8.25% (the threshold to determine overbought or oversold conditions is plus or minus 4%, respectively). While markets can stay overbought for a while, we like to look for areas to raise cash when we reach these levels as they indicate a near-term pullback is increasingly likely. (Jim Cramer's Charitable Trust is long NVDA, AMZN, META and HD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Bloomberg
23 minutes ago
- Bloomberg
US Keeps Up ‘Maximum Pressure' on Iran With New Oil Sanctions
The US took fresh steps to restrict the trade of Iranian oil, keeping up pressure on Iran even as President Donald Trump signaled possible relief after bombing its nuclear facilities. The Treasury and State departments on Thursday announced separate sanctions on companies and a 'shadow fleet' of vessels that help Iran export its crude.
