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There's Been No Shortage Of Growth Recently For Hutchison Port Holdings Trust's (SGX:NS8U) Returns On Capital

Simply Wall St · 3d ago

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. With that in mind, we've noticed some promising trends at Hutchison Port Holdings Trust (SGX:NS8U) so let's look a bit deeper.

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What Is 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 Hutchison Port Holdings Trust is:

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

0.068 = HK$4.7b ÷ (HK$80b - HK$12b) (Based on the trailing twelve months to June 2025).

Thus, Hutchison Port Holdings Trust has an ROCE of 6.8%. In absolute terms, that's a low return but it's around the Infrastructure industry average of 6.5%.

View our latest analysis for Hutchison Port Holdings Trust

roce
SGX:NS8U Return on Capital Employed January 7th 2026

In the above chart we have measured Hutchison Port Holdings Trust's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Hutchison Port Holdings Trust .

So How Is Hutchison Port Holdings Trust's ROCE Trending?

Hutchison Port Holdings Trust has not disappointed with their ROCE growth. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 72% in that same time. 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. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking.

What We Can Learn From Hutchison Port Holdings Trust's ROCE

To sum it up, Hutchison Port Holdings Trust is collecting higher returns from the same amount of capital, and that's impressive. Since the stock has returned a solid 53% to shareholders over the last five years, it's fair to say investors are beginning to recognize these changes. In light of that, we think it's worth looking further into this stock because if Hutchison Port Holdings Trust can keep these trends up, it could have a bright future ahead.

Hutchison Port Holdings Trust does have some risks though, and we've spotted 2 warning signs for Hutchison Port Holdings Trust that you might be interested in.

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