Mensch und Maschine Software: A Look at Long-Term Investment Potential
When considering a stock that may yield significant returns over the long haul, certain fundamental trends come into play. Ideally, one would want to observe a company that is amplifying capital investments within its operations, alongside an upward trajectory in returns derived from that capital.
This combination reflects a business adept at reinvesting its profits efficiently, thereby enhancing its return on capital. Upon examining the trend of Return on Capital Employed (ROCE) for Mensch und Maschine Software (ETR: MUM), the results are quite promising.
To clarify, ROCE serves as a vital metric for assessing a company’s pre-tax income percentage relative to the capital deployed in its ventures. The calculation for Mensch und Maschine Software is as follows:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)
0.39 = €46 million ÷ (€195 million – €77 million) (Based on the trailing twelve months ending September 2025).
Mensch und Maschine Software boasts a ROCE of 39%. This figure not only signifies an exceptional return but also eclipses the average of 19% typically achieved by peers in the industry.
Access our recent analysis of Mensch und Maschine Software XTRA: MUM Return on Capital Employed, November 17th, 2025
The aforementioned chart provides insights into Mensch und Maschine Software’s historical ROCE, but the forward-looking perspective may be even more crucial. For those interested, additional forecasts from analysts monitoring Mensch und Maschine Software can be reviewed free of charge.
Mensch und Maschine Software has demonstrated commendable progress in its ROCE. Notably, even as the company has maintained a consistent level of capital employed over the past five years, its ROCE has surged by 32% during that period.
This suggests that the company is likely reaping the rewards of its past investments, given the stability in capital employed. However, this raises questions about potential internal investment opportunities for future organic expansion.
In summation, Mensch und Maschine Software has successfully enhanced the returns generated from its capital.
Although the stock has experienced a 19% decline over the past five years, a thorough assessment of its valuation and other performance metrics may indicate an intriguing investment opportunity.
Hence, a detailed exploration of the company’s current valuation and future outlook is warranted.
Like many corporations, Mensch und Maschine Software carries certain risks. We have identified one significant warning sign that warrants your attention.
For those keen on exploring additional stocks yielding high returns, a complementary list of stocks with solid balance sheets and high returns on equity may provide further insights.
Source link: Finance.yahoo.com.
