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To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. That's why when we briefly looked at Super Retail Group's (ASX:SUL) ROCE trend, we were pretty happy with what we saw.
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>>> Read more: Returns On Capital At Super Retail Group (ASX:SUL) Have Stalled
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>>> Read more: Returns On Capital At Super Retail Group (ASX:SUL) Have Stalled