WEBULL

There's Been No Shortage Of Growth Recently For Newmark Security's (LON:NWT) Returns On Capital

Simply Wall St · 2d ago

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing 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. With that in mind, we've noticed some promising trends at Newmark Security (LON:NWT) so let's look a bit deeper.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Understanding Return On Capital Employed (ROCE)

For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Newmark Security is:

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

0.093 = UK£930k ÷ (UK£16m - UK£6.2m) (Based on the trailing twelve months to April 2025).

Thus, Newmark Security has an ROCE of 9.3%. On its own, that's a low figure but it's around the 10% average generated by the Electronic industry.

See our latest analysis for Newmark Security

roce
AIM:NWT Return on Capital Employed December 6th 2025

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 Newmark Security has performed in the past in other metrics, you can view this free graph of Newmark Security's past earnings, revenue and cash flow.

So How Is Newmark Security's ROCE Trending?

Newmark Security has not disappointed with their ROCE growth. The figures show that over the last five years, ROCE has grown 40% whilst employing roughly the same amount of capital. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects.

What We Can Learn From Newmark Security's ROCE

As discussed above, Newmark Security appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. And investors seem to expect more of this going forward, since the stock has rewarded shareholders with a 61% return over the last five years. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.

On a separate note, we've found 3 warning signs for Newmark Security you'll probably want to know about.

While Newmark Security 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.