Returns On Capital Are A Standout For National Atomic Company Kazatomprom JSC (LON:KAP)
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. With that in mind, the ROCE of National Atomic Company Kazatomprom JSC (LON:KAP) looks great, so lets see what the trend can tell us.
What Is Return On Capital Employed (ROCE)?
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. Analysts use this formula to calculate it for National Atomic Company Kazatomprom JSC:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.26 = ₸892b ÷ (₸4.0t - ₸500b) (Based on the trailing twelve months to September 2025).
So, National Atomic Company Kazatomprom JSC has an ROCE of 26%. In absolute terms that's a great return and it's even better than the Oil and Gas industry average of 6.3%.
View our latest analysis for National Atomic Company Kazatomprom JSC
In the above chart we have measured National Atomic Company Kazatomprom JSC's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering National Atomic Company Kazatomprom JSC for free.
What The Trend Of ROCE Can Tell Us
National Atomic Company Kazatomprom JSC is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 26%. The company is effectively making more money per dollar of capital used, and it's worth noting that the amount of capital has increased too, by 126%. The increasing returns on a growing amount of capital is common amongst multi-baggers and that's why we're impressed.
In Conclusion...
To sum it up, National Atomic Company Kazatomprom JSC has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. And a remarkable 276% total return over the last five years tells us that investors are expecting more good things to come in the future. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.
One more thing, we've spotted 1 warning sign facing National Atomic Company Kazatomprom JSC that you might find interesting.
National Atomic Company Kazatomprom JSC is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals.
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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.