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Bell Food Group (VTX:BELL) Hasn't Managed To Accelerate Its Returns

Simply Wall St · 5d ago

To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after briefly looking over the numbers, we don't think Bell Food Group (VTX:BELL) has the makings of a multi-bagger going forward, but let's have a look at why that may be.

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Understanding 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 Bell Food Group:

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

0.064 = CHF169m ÷ (CHF3.2b - CHF578m) (Based on the trailing twelve months to June 2025).

So, Bell Food Group has an ROCE of 6.4%. Ultimately, that's a low return and it under-performs the Food industry average of 12%.

View our latest analysis for Bell Food Group

roce
SWX:BELL Return on Capital Employed January 6th 2026

Above you can see how the current ROCE for Bell Food Group compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Bell Food Group for free.

What Does the ROCE Trend For Bell Food Group Tell Us?

Things have been pretty stable at Bell Food Group, with its capital employed and returns on that capital staying somewhat the same for the last 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 Bell Food Group doesn't end up being a multi-bagger in a few years time. This probably explains why Bell Food Group is paying out 33% of its income to shareholders in the form of dividends. Unless businesses have highly compelling growth opportunities, they'll typically return some money to shareholders.

The Bottom Line

In summary, Bell Food Group isn't compounding its earnings but is generating stable returns on the same amount of capital employed. Unsurprisingly, the stock has only gained 3.5% over the last five years, which potentially indicates that investors are accounting for this going forward. Therefore, if you're looking for a multi-bagger, we'd propose looking at other options.

If you want to continue researching Bell Food Group, you might be interested to know about the 2 warning signs that our analysis has discovered.

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