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Infrastrutture Wireless Italiane (BIT:INW) Might Have The Makings Of A Multi-Bagger

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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So when we looked at Infrastrutture Wireless Italiane (BIT:INW) and its trend of ROCE, we really liked what we saw.

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Return On Capital Employed (ROCE): What Is It?

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 Infrastrutture Wireless Italiane is:

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

0.066 = €579m ÷ (€9.4b - €667m) (Based on the trailing twelve months to September 2025).

Thus, Infrastrutture Wireless Italiane has an ROCE of 6.6%. In absolute terms, that's a low return and it also under-performs the Telecom industry average of 10%.

View our latest analysis for Infrastrutture Wireless Italiane

roce
BIT:INW Return on Capital Employed January 7th 2026

Above you can see how the current ROCE for Infrastrutture Wireless Italiane compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Infrastrutture Wireless Italiane .

How Are Returns Trending?

Infrastrutture Wireless Italiane is showing promise given that its ROCE is trending up and to the right. The figures show that over the last five years, ROCE has grown 92% whilst employing roughly the same amount of capital. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects.

In Conclusion...

As discussed above, Infrastrutture Wireless Italiane appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. Since the stock has only returned 4.4% to shareholders over the last five years, the promising fundamentals may not be recognized yet by investors. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up.

One more thing, we've spotted 2 warning signs facing Infrastrutture Wireless Italiane that you might find interesting.

For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.