There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So on that note, Negri Sembilan Oil Palms Berhad (KLSE:NSOP) looks quite promising in regards to its trends of return on capital.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

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

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Negri Sembilan Oil Palms Berhad:

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

0.056 = RM49m ÷ (RM886m - RM9.7m) (Based on the trailing twelve months to June 2025).

Thus, Negri Sembilan Oil Palms Berhad has an ROCE of 5.6%. Ultimately, that's a low return and it under-performs the Food industry average of 9.7%.

See our latest analysis for Negri Sembilan Oil Palms Berhad

Historical performance is a great place to start when researching a stock so above you can see the gauge for Negri Sembilan Oil Palms Berhad's ROCE against it's prior returns. If you're interested in investigating Negri Sembilan Oil Palms Berhad's past further, check out this free graph covering Negri Sembilan Oil Palms Berhad's past earnings, revenue and cash flow.

What Does the ROCE Trend For Negri Sembilan Oil Palms Berhad Tell Us?

The fact that Negri Sembilan Oil Palms Berhad is now generating some pre-tax profits from its prior investments is very encouraging. About five years ago the company was generating losses but things have turned around because it's now earning 5.6% on its capital. Not only that, but the company is utilizing 21% more capital than before, but that's to be expected from a company trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance.

Our Take On Negri Sembilan Oil Palms Berhad's ROCE

To the delight of most shareholders, Negri Sembilan Oil Palms Berhad has now broken into profitability. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. Therefore, we think it would be worth your time to check if these trends are going to continue.