CPU News: There Are Reasons To Feel Uneasy About Computershare's (ASX:CPU) Returns On Capital - 22nd Feb 2023, 7:00am

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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. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after investigating Computershare (ASX:CPU), we don't think it's current trends fit the mold o...

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