HYUNDAI MOVEX (KOSDAQ:319400) Hasn't Managed To Accelerate Its Returns
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So, when we ran our eye over HYUNDAI MOVEX's (KOSDAQ:319400) trend of ROCE, we liked what we saw.
Return On Capital Employed (ROCE): What Is It?
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 HYUNDAI MOVEX, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.14 = ₩25b ÷ (₩255b - ₩78b) (Based on the trailing twelve months to September 2025).
So, HYUNDAI MOVEX has an ROCE of 14%. On its own, that's a standard return, however it's much better than the 6.1% generated by the Construction industry.
Check out our latest analysis for HYUNDAI MOVEX
Above you can see how the current ROCE for HYUNDAI MOVEX compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering HYUNDAI MOVEX for free.
How Are Returns Trending?
While the returns on capital are good, they haven't moved much. The company has employed 69% more capital in the last five years, and the returns on that capital have remained stable at 14%. Since 14% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns.
Our Take On HYUNDAI MOVEX's ROCE
In the end, HYUNDAI MOVEX has proven its ability to adequately reinvest capital at good rates of return. And the stock has done incredibly well with a 230% return over the last five years, so long term investors are no doubt ecstatic with that result. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research.
On a final note, we've found 2 warning signs for HYUNDAI MOVEX that we think you should be aware of.
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.
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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.