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If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. 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 looked at Seven Group Holdings (ASX:SVW) and its trend of ROCE, we really liked what we saw.
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>>> Read more: Seven Group Holdings (ASX:SVW) Is Looking To Continue Growing Its Returns On Capital
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>>> Read more: Seven Group Holdings (ASX:SVW) Is Looking To Continue Growing Its Returns On Capital