Sentences with phrase «high returns on invested capital»

They have been able to generate high returns on invested capital and shareholders have greatly benefited.
It was the original management that seemed to generate very high returns on invested capital, because the guy actually knew how to run successful exhibits.
Companies that consistently earn high returns on invested capital with high probabilities of continuing this into the future are worth far more than their carrying value.
You show businesses with high returns on invested capital and also the ones with a low ROIC.
Peltz also proposed cutting other «excess» costs, adding debt, adopting a more shareholder - friendly policy for distributing cash from CyclicalCo / CashCo, prioritizing high returns on invested capital for initiatives at GrowthCo, and introducing more shareholder - friendly governance, including tighter alignment between executive compensation and returns to shareholders.
We've previously shown that companies with consistently high returns on invested capital (ROIC) are stocks that are able to withstand market downturns, especially bear markets like the market crash of 2008.
As Figure 1 shows, the 30 companies with the most cash stashed overseas earn a much higher return on invested capital (ROIC) than the rest of the S&P 500.
Flex Ltd. (FLEX - $ 16) Flex is undergoing a business transformation that should result in structurally higher returns on invested capital.
This allows us to mitigate risk and deploy that cash when stocks look attractive per our model, which focuses on factors like high returns on invested capital, sales per share growth and dividend per share growth.
People who focus on entry barriers (threat from new entrants) alone may forget that increased power of customers and / or suppliers could also significantly impair a company's ability to deliver high returns on invested capital over time.
And those businesses have traditionally been tilted towards those that did not require a lot of capital expenditures but rather threw off lots of cash with minimal capital investment requirements, and provided very high returns on invested capital.
That's why Greenblatt's thesis of looking at companies with high returns on invested capital is fatally flawed from the get - go, and you see it manifested in his real - world returns.
We saw that companies that earned a consistently high return on invested capital (ROIC) were the only ones to survive unscathed.
The best investments offer both growth — in the form of steadily increasing revenue — and value — in the form of a high return on invested capital (ROIC).
Anadarko has some of the highest quality assets in the U.S. onshore market, generating high returns on invested capital and holding a large inventory of undrilled locations.
At its most basic level, the stock market is supposed to efficiently allocate capital to the most deserving companies, i.e. ones that generate the most after - tax profit (NOPAT) per dollar of invested capital, or the highest return on invested capital (ROIC).
Not surprisingly, we like companies that earn a high return on invested capital, maintain conservative balance sheets, have numerous opportunities for earnings growth, generate consistent free cash flow, maintain healthy payout ratios, and are committed to reasonable dividend growth.
As a result, Restaurant Brands boasts a very high return on invested capital and generates a lot of free cash flow.
«We like stocks that generate high returns on invested capital,» Warren Buffett told those in attendance at Berkshire's 1995 annual meeting, «where there is a strong likelihood that it will continue to do so.»
But what about buying good companies that generate a high return on invested capital without looking to see if the companies are over - or undervalued?
The fact that a company generates a high return on invested capital does not make it a market beating investment; valuation is more important.
Desired characteristics include a high return on invested capital, shareholder - friendly management and / or sustainable competitive advantages.
One of the primary reasons for this growth is that MMM has long been able to achieve very high returns on invested capital.
According to Buffett, there are some managements that are worth the money and the two things you require from a management is a relentless focus and maintaining a very high return on the invested capital.
Then we visit Joel Greenblatt, where he analyzes buying good companies at cheap prices, analyzing them the way an acquirer might do, but also looking for high returns on invested capital.
An individual, usually a professional, who attempts to produce the highest return on invested capital while incurring a minimum of risk within the guidelines laid down by the person or company whose funds he is investing.
All else being equal, the higher the return on invested capital, the more valuable the business.»
Quality relates to the ability of the business to generate higher return on invested capital.
Having companies that have the ability to raise prices and that have modest maintenance capex requirements along with high returns on invested capital can help hedge against inflation.
Markel's first filter for equity investments is that a company be a good business with high returns on invested capital.
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