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Aarush Sawant's avatar

Wow, I was also among the ones who thought ROE should be high, such a valuable post. As you said that low ROE that increases is great but here we really need to look how management is and what is there vision or else that ROE could decrease rather than increasing.

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ATC (Absolute Total Compound)'s avatar

"Both our operating and investment experience cause us to conclude that turnarounds seldom turn," Buffett wrote in 1979

Arkema is a good example failed to turnaround.

My Expected Net Profit Growth

= ROA × Reinvestment Ratio × (Current Asset ÷ Total Liabilities)

= 2.4×(1-3.6÷4.51)×(5÷8.15)

= 0.2971 %

≈ 0 %

By PEG

P/E (intrinsic)

= 0.2971

≈ 0

EBITDA Growth 2024 = +2.07%

Revenue Growth 2024 = +0.32%

Gross Profit Growth 2024 = -1.07%

Net Profit Growth 2024 = -15.92%

And

ROIC < WACC (NO ECONOMIC POWER, Value Destructor)

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