The Returns At Dong Suh Companies (KRX:026960) Aren't Growing

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. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Having said that, from a first glance at Dong Suh Companies (KRX:026960) we aren't jumping out of our chairs at how returns are trending, but let's have a deeper look.

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Understanding 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. The formula for this calculation on Dong Suh Companies is:

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

0.028 = ₩48b ÷ (₩1.8t - ₩53b) (Based on the trailing twelve months to September 2025).

Thus, Dong Suh Companies has an ROCE of 2.8%. In absolute terms, that's a low return and it also under-performs the Consumer Retailing industry average of 8.1%.

See our latest analysis for Dong Suh Companies

While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Dong Suh Companies has performed in the past in other metrics, you can view this free graph of Dong Suh Companies' past earnings, revenue and cash flow.

What Does the ROCE Trend For Dong Suh Companies Tell Us?

There hasn't been much to report for Dong Suh Companies' returns and its level of capital employed because both metrics have been steady for the past five years. Businesses with these traits tend to be mature and steady operations because they're past the growth phase. So don't be surprised if Dong Suh Companies doesn't end up being a multi-bagger in a few years time.

The Bottom Line

In summary, Dong Suh Companies isn't compounding its earnings but is generating stable returns on the same amount of capital employed. And with the stock having returned a mere 7.4% in the last five years to shareholders, you could argue that they're aware of these lackluster trends. As a result, if you're hunting for a multi-bagger, we think you'd have more luck elsewhere.

If you're still interested in Dong Suh Companies it's worth checking out our FREE intrinsic value approximation for A026960 to see if it's trading at an attractive price in other respects.

While Dong Suh Companies 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.