We Like These Underlying Return On Capital Trends At Log-In Logística Intermodal (BVMF:LOGN3)

There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount 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. So on that note, Log-In Logística Intermodal (BVMF:LOGN3) looks quite promising in regards to its trends of return on capital.

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Return On Capital Employed (ROCE): What Is It?

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. The formula for this calculation on Log-In Logística Intermodal is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.13 = R$399m ÷ (R$4.0b - R$968m) (Based on the trailing twelve months to September 2025).

Therefore, Log-In Logística Intermodal has an ROCE of 13%. On its own, that's a standard return, however it's much better than the 9.4% generated by the Shipping industry.

See our latest analysis for Log-In Logística Intermodal

Above you can see how the current ROCE for Log-In Logística Intermodal 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 Log-In Logística Intermodal .

What Can We Tell From Log-In Logística Intermodal's ROCE Trend?

The trends we've noticed at Log-In Logística Intermodal are quite reassuring. Over the last five years, returns on capital employed have risen substantially to 13%. 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 75%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.

The Key Takeaway

A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Log-In Logística Intermodal has. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue.

Log-In Logística Intermodal does have some risks though, and we've spotted 1 warning sign for Log-In Logística Intermodal that you might be interested in.

While Log-In Logística Intermodal may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

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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.