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To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So, when we ran our eye over Harvey Norman Holdings' (ASX:HVN) trend of ROCE, we liked what we saw.
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>>> Read more: Harvey Norman Holdings (ASX:HVN) Hasn't Managed To Accelerate Its Returns
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>>> Read more: Harvey Norman Holdings (ASX:HVN) Hasn't Managed To Accelerate Its Returns