BDT Is Investing Its Capital With Increasing EfficiencyWe looked at the ROCE(Return On Capital Employed) trend of Bird Construction (TSE:BDT) we really liked what we saw.
Bird Construction has an ROCE of 24%. That's a fantastic return and not only that, it outpaces the average of 6.7% earned by companies in a similar industry.
The trends noticed at Bird Construction are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 24%. Basically the business is earning more per dollar of capital invested and in addition to that, 122% more capital is being employed now too. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.
All in all, it's terrific to see that Bird Construction is reaping the rewards from prior investments and is growing its capital base. Since the stock has only returned 30% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up.