CoreCard (NYSE:CCRD), a firm recognized for its profitable initiatives and compounding growth, has been making notable strides in its returns on capital employed (ROCE). As of June 2023, the company's ROCE stands at 16%, calculated using earnings before interest and taxes (EBIT) of $9.2 million, total assets of $66 million, and current liabilities of $8 million. This figure significantly outpaces the software industry average of 8.5%, highlighting CoreCard's efficient capital utilization.
Over the last five years, CoreCard has exhibited a strong trend of increasing ROCE, coupled with a capital increase of 169%. This trend indicates an efficient generation of profits and reinvestment strategy by the company. During the same period, CoreCard also delivered a remarkable total return of 110%, reflecting investor optimism about the company's future performance.
Analysts' forecasts further underscore these promising trends, suggesting that CoreCard's strategic initiatives are likely to continue driving its growth. The company's ability to identify and capitalize on profitable ventures has positioned it as a compelling long-term growth stock in the market.
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