Is Autohome a Multi-Bagger Stock? A Closer Look at Its ROCE

Is Autohome a Multi-Bagger Stock? A Closer Look at Its ROCE

Autohome (NYSE:ATHM) is a Chinese online destination for automobile consumers. When looking for a potential multi-bagger stock, investors typically seek businesses with two key trends: a growing return on capital employed (ROCE) and an increasing amount of capital employed. These trends indicate that the company is reinvesting profits at higher rates of return. ROCE measures a company’s ability to generate pre-tax profits from the capital it emp…