Latest news with #Machinery
Yahoo
5 days ago
- Business
- Yahoo
JP Morgan Raises Trimble (TRMB) Price Target, Maintains Overweight Rating
Trimble Inc. (NASDAQ:TRMB) is one of the Best Industrial Automation Stocks to Buy for the Next Decade. JPMorgan has raised its price target on Trimble Inc. (NASDAQ:TRMB) to $95 from $88, maintaining its Overweight rating on the stock. The investment bank cited growing strength in the broader machinery group, driven by a mix of favorable legislative developments and macroeconomic shifts. A worker at a remote location using Automated Application Technology with their tablet and scanner. According to JPMorgan analysts, the recent passage of the 'One Big Beautiful Bill', which restores 100% bonus depreciation, has revived investor enthusiasm for capital-intensive sectors. This, combined with the delayed implementation of key tariffs and increasing confidence in forthcoming interest rate cuts from the Federal Reserve, has created a tailwind for machinery and equipment names. Historically, machinery stocks have performed well ahead of initial rate cuts, and JPMorgan believes this cycle will follow the same pattern. As such, the firm is recommending that investors increase exposure to the sector, with Trimble Inc. (NASDAQ:TRMB) standing out as a top pick. Trimble shares have already seen notable gains in recent weeks, reflecting optimism about demand recovery and structural investment in automation technologies across industries. With a strong presence in construction tech, geospatial software, and precision agriculture, Trimble is positioned to benefit from long-term infrastructure modernization and digital transformation trends. Trimble enables industrial automation through advanced GPS, construction tech, and geospatial software critical to precision workflows in manufacturing and infrastructure. While we acknowledge the potential of TRMB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 Healthcare AI Stocks to Buy According to Hedge Funds and 10 Consumer Defensive Stocks to Buy Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
08-07-2025
- Business
- Yahoo
KHD Humboldt Wedag International (ETR:KWG) Might Have The Makings Of A Multi-Bagger
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So on that note, KHD Humboldt Wedag International (ETR:KWG) looks quite promising in regards to its trends of return on capital. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. 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. To calculate this metric for KHD Humboldt Wedag International, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.076 = €10m ÷ (€255m - €121m) (Based on the trailing twelve months to December 2024). Therefore, KHD Humboldt Wedag International has an ROCE of 7.6%. On its own, that's a low figure but it's around the 8.6% average generated by the Machinery industry. Check out our latest analysis for KHD Humboldt Wedag 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're interested in investigating KHD Humboldt Wedag International's past further, check out this free graph covering KHD Humboldt Wedag International's past earnings, revenue and cash flow. KHD Humboldt Wedag International has broken into the black (profitability) and we're sure it's a sight for sore eyes. While the business was unprofitable in the past, it's now turned things around and is earning 7.6% 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. Because in the end, a business can only get so efficient. On a separate but related note, it's important to know that KHD Humboldt Wedag International has a current liabilities to total assets ratio of 48%, which we'd consider pretty high. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. As discussed above, KHD Humboldt Wedag International appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. Investors may not be impressed by the favorable underlying trends yet because over the last five years the stock has only returned 34% to shareholders. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
06-07-2025
- Business
- Yahoo
va-Q-tec (HMSE:VQT) Is Investing Its Capital With Increasing Efficiency
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? 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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at the ROCE trend of va-Q-tec (HMSE:VQT) we really liked what we saw. 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. To calculate this metric for va-Q-tec, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.22 = €23m ÷ (€140m - €37m) (Based on the trailing twelve months to December 2024). Therefore, va-Q-tec has an ROCE of 22%. In absolute terms that's a great return and it's even better than the Machinery industry average of 8.7%. View our latest analysis for va-Q-tec Historical performance is a great place to start when researching a stock so above you can see the gauge for va-Q-tec's ROCE against it's prior returns. If you're interested in investigating va-Q-tec's past further, check out this free graph covering va-Q-tec's past earnings, revenue and cash flow. We're delighted to see that va-Q-tec is reaping rewards from its investments and is now generating some pre-tax profits. The company was generating losses five years ago, but now it's earning 22% which is a sight for sore eyes. In addition to that, va-Q-tec is employing 33% more capital than previously which is expected of a company that's trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance. Long story short, we're delighted to see that va-Q-tec's reinvestment activities have paid off and the company is now profitable. Since the stock has returned a solid 10% to shareholders over the last year, it's fair to say investors are beginning to recognize these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets. — 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: $359.72 · 0.1% 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) 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.
Yahoo
06-07-2025
- Business
- Yahoo
va-Q-tec (HMSE:VQT) Is Investing Its Capital With Increasing Efficiency
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? 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. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at the ROCE trend of va-Q-tec (HMSE:VQT) we really liked what we saw. 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. To calculate this metric for va-Q-tec, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.22 = €23m ÷ (€140m - €37m) (Based on the trailing twelve months to December 2024). Therefore, va-Q-tec has an ROCE of 22%. In absolute terms that's a great return and it's even better than the Machinery industry average of 8.7%. View our latest analysis for va-Q-tec Historical performance is a great place to start when researching a stock so above you can see the gauge for va-Q-tec's ROCE against it's prior returns. If you're interested in investigating va-Q-tec's past further, check out this free graph covering va-Q-tec's past earnings, revenue and cash flow. We're delighted to see that va-Q-tec is reaping rewards from its investments and is now generating some pre-tax profits. The company was generating losses five years ago, but now it's earning 22% which is a sight for sore eyes. In addition to that, va-Q-tec is employing 33% more capital than previously which is expected of a company that's trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance. Long story short, we're delighted to see that va-Q-tec's reinvestment activities have paid off and the company is now profitable. Since the stock has returned a solid 10% to shareholders over the last year, it's fair to say investors are beginning to recognize these changes. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets. — 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: $359.72 · 0.1% 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) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Business
- Yahoo
Park-Ohio Holdings (NASDAQ:PKOH) Has Some Way To Go To Become A Multi-Bagger
There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. However, after briefly looking over the numbers, we don't think Park-Ohio Holdings (NASDAQ:PKOH) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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. To calculate this metric for Park-Ohio Holdings, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.086 = US$90m ÷ (US$1.4b - US$361m) (Based on the trailing twelve months to March 2025). Therefore, Park-Ohio Holdings has an ROCE of 8.6%. Ultimately, that's a low return and it under-performs the Machinery industry average of 11%. View our latest analysis for Park-Ohio Holdings In the above chart we have measured Park-Ohio 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 Park-Ohio Holdings . Things have been pretty stable at Park-Ohio Holdings, with its capital employed and returns on that capital staying somewhat the same for the last five years. Businesses with these traits tend to be mature and steady operations because they're past the growth phase. So don't be surprised if Park-Ohio Holdings doesn't end up being a multi-bagger in a few years time. In a nutshell, Park-Ohio Holdings has been trudging along with the same returns from the same amount of capital over the last five years. Unsurprisingly, the stock has only gained 23% over the last five years, which potentially indicates that investors are accounting for this going forward. Therefore, if you're looking for a multi-bagger, we'd propose looking at other options. Park-Ohio Holdings does come with some risks though, we found 3 warning signs in our investment analysis, and 1 of those is concerning... While Park-Ohio Holdings may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 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) 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. Sign in to access your portfolio
