Returns At Nuriplan (KOSDAQ:069140) Are On The Way Up

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base 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. Speaking of which, we noticed some great changes in Nuriplan's (KOSDAQ:069140) returns on capital, so let's have a 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. Analysts use this formula to calculate it for Nuriplan:

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

0.16 = ₩12b ÷ (₩147b - ₩75b) (Based on the trailing twelve months to September 2025).

Therefore, Nuriplan has an ROCE of 16%. On its own, that's a standard return, however it's much better than the 6.1% generated by the Construction industry.

Check out our latest analysis for Nuriplan

Historical performance is a great place to start when researching a stock so above you can see the gauge for Nuriplan's ROCE against it's prior returns. If you'd like to look at how Nuriplan has performed in the past in other metrics, you can view this free graph of Nuriplan's past earnings, revenue and cash flow.

What Does the ROCE Trend For Nuriplan Tell Us?

Nuriplan is displaying some positive trends. The data shows that returns on capital have increased substantially over the last five years to 16%. The amount of capital employed has increased too, by 38%. So we're very much inspired by what we're seeing at Nuriplan thanks to its ability to profitably reinvest capital.

On a side note, Nuriplan's current liabilities are still rather high at 51% of total assets. This can bring about some risks because the company is basically operating with a rather large reliance on its suppliers or other sorts of short-term creditors. While it's not necessarily a bad thing, it can be beneficial if this ratio is lower.

The Bottom Line On Nuriplan's ROCE

In summary, it's great to see that Nuriplan can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. Astute investors may have an opportunity here because the stock has declined 47% in the last five years. With that in mind, we believe the promising trends warrant this stock for further investigation.

One more thing, we've spotted 3 warning signs facing Nuriplan that you might find interesting.

While Nuriplan isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.

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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.