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.
Great writeup. Looking for potential improvements also requires confidence in the management team that this is on their agenda, and they will pursue it. This is less of a problem when you can get on the board and help the management see the light. For regular investors, this could be less of an option. Thoughts?
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.
"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)
Great writeup. Looking for potential improvements also requires confidence in the management team that this is on their agenda, and they will pursue it. This is less of a problem when you can get on the board and help the management see the light. For regular investors, this could be less of an option. Thoughts?