Saccheria F.lli Franceschetti (BIT:SAC) Has Some Way To Go To Become A Multi-Bagger
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount 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. That's why when we briefly looked at Saccheria F.lli Franceschetti's (BIT:SAC) ROCE trend, we were pretty happy with what we saw.
What Is Return On Capital Employed (ROCE)?
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 Saccheria F.lli Franceschetti, this is the formula:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.14 = €1.9m ÷ (€19m - €5.1m) (Based on the trailing twelve months to June 2025).
Thus, Saccheria F.lli Franceschetti has an ROCE of 14%. On its own, that's a standard return, however it's much better than the 8.8% generated by the Packaging industry.
See our latest analysis for Saccheria F.lli Franceschetti
Above you can see how the current ROCE for Saccheria F.lli Franceschetti compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Saccheria F.lli Franceschetti .
The Trend Of ROCE
The trend of ROCE doesn't stand out much, but returns on a whole are decent. The company has employed 60% more capital in the last four 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. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders.
On a side note, Saccheria F.lli Franceschetti has done well to reduce current liabilities to 27% of total assets over the last four years. Effectively suppliers now fund less of the business, which can lower some elements of risk.
Our Take On Saccheria F.lli Franceschetti's ROCE
To sum it up, Saccheria F.lli Franceschetti has simply been reinvesting capital steadily, at those decent rates of return. Yet over the last three years the stock has declined 17%, so the decline might provide an opening. For that reason, savvy investors might want to look further into this company in case it's a prime investment.
On a separate note, we've found 3 warning signs for Saccheria F.lli Franceschetti you'll probably want to know about.
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.