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There's Been No Shortage Of Growth Recently For Gulf International Services Q.P.S.C's (DSM:GISS) Returns On Capital

Simply Wall St · 1d ago

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Speaking of which, we noticed some great changes in Gulf International Services Q.P.S.C's (DSM:GISS) returns on capital, so let's have a look.

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What Is Return On Capital Employed (ROCE)?

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. Analysts use this formula to calculate it for Gulf International Services Q.P.S.C:

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

0.084 = ر.ق814m ÷ (ر.ق12b - ر.ق2.1b) (Based on the trailing twelve months to September 2025).

So, Gulf International Services Q.P.S.C has an ROCE of 8.4%. On its own, that's a low figure but it's around the 8.6% average generated by the Energy Services industry.

Check out our latest analysis for Gulf International Services Q.P.S.C

roce
DSM:GISS Return on Capital Employed December 16th 2025

Above you can see how the current ROCE for Gulf International Services Q.P.S.C 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 Gulf International Services Q.P.S.C .

How Are Returns Trending?

While in absolute terms it isn't a high ROCE, it's promising to see that it has been moving in the right direction. The data shows that returns on capital have increased substantially over the last five years to 8.4%. The amount of capital employed has increased too, by 30%. So we're very much inspired by what we're seeing at Gulf International Services Q.P.S.C thanks to its ability to profitably reinvest capital.

One more thing to note, Gulf International Services Q.P.S.C has decreased current liabilities to 17% of total assets over this period, which effectively reduces the amount of funding from suppliers or short-term creditors. So this improvement in ROCE has come from the business' underlying economics, which is great to see.

In Conclusion...

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 Gulf International Services Q.P.S.C has. Since the stock has returned a solid 69% to shareholders over the last five years, it's fair to say investors are beginning to recognize these changes. 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.

Gulf International Services Q.P.S.C does have some risks though, and we've spotted 2 warning signs for Gulf International Services Q.P.S.C that you might be interested in.

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