City Lodge Hotels (JSE:CLH) Achieves 341% ROCE Growth, Indicating Efficiency Gains
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
0mins
Source: Yahoo Finance
- ROCE Improvement: City Lodge Hotels has achieved a remarkable 341% growth in Return on Capital Employed (ROCE) over the past five years, indicating that the company is generating higher returns from the same capital base, which reflects significant operational efficiency improvements.
- Financial Health Enhancement: The reduction of current liabilities to 12% of total assets signifies a decreased reliance on suppliers and short-term creditors, thereby enhancing financial stability and further supporting profitability improvements.
- Industry Comparison: With a ROCE of 17%, City Lodge Hotels remains competitive within the hospitality sector, where the average is around 20%, indicating a solid market position despite not being the highest performer.
- Future Growth Potential: Given the company's efficiency gains and improved profitability, investor sentiment is optimistic about its future performance, suggesting that if these trends continue, City Lodge Hotels could achieve significant growth ahead.
Analyst Views on CLH
Wall Street analysts forecast CLH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLH is 255.64 USD with a low forecast of 220.00 USD and a high forecast of 305.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 247.490
Low
220.00
Averages
255.64
High
305.00
Current: 247.490
Low
220.00
Averages
255.64
High
305.00
About CLH
Clean Harbors, Inc. is a provider of environmental and industrial services. The Company delivers a range of services, such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Its Environmental Services segment offers an array of services to customers. It collects, transports, treats and disposes of hazardous and non-hazardous waste through its network of waste disposal facilities, including incinerators, landfills, treatment, storage and disposal facilities (TSDFs), wastewater treatment facilities and solvent recycling centers. Its Safety-Kleen Sustainability Solutions (SKSS) segment offerings span the lifecycle of sustainable lubricant products. It collects used oil which serves as feedstock for its oil re-refineries. At these facilities, it manufactures, formulates and packages lubricants which are returned to the marketplace. It also provides parts washers and environmental services to various customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
