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Ventia Services Group's 24% Return on Capital and Rising Trends
ByAinvest
Monday, Sep 1, 2025 11:59 pm ET1min read
Ventia Services Group (ASX:VNT) has a 24% return on capital employed, which is higher than the average of 15% for similar companies. The return has grown 143% over the last five years, despite little change in capital employed. However, the company has a high current liabilities to total assets ratio, which introduces risk. Overall, the trends look promising, but investors should be aware of the potential risks.
Ventia Services Group Limited (ASX:VNT) has been receiving favorable analyst ratings and showcasing promising financial trends. The company has a consensus rating of Moderate Buy, based on 4 buy ratings, 3 hold ratings, and 0 sell ratings from 7 Wall Street analysts [1]. The average 12-month price target for VNT is AU$5.40, with a high forecast of AU$5.75 and a low forecast of AU$4.45, representing a -2.53% decrease from the current price of AU$5.54 [1].The company's return on capital employed (ROCE) is a notable 24%, significantly higher than the average of 15% for similar companies. Over the past five years, VNT's ROCE has grown by 143%, despite little change in capital employed. This indicates a strong business model and ample reinvestment opportunities [2]. However, VNT's high current liabilities to total assets ratio introduces potential risk [2].
The company's earnings and sales forecasts for the next quarter are AU$0.16 and AU$3.34B, respectively, with a range of AU$0.16 to AU$0.17 for earnings and AU$3.33B to AU$3.35B for sales. VNT has outperformed its industry in the past year, beating EPS estimates 50% of the time and sales estimates 0% of the time [1].
In conclusion, Ventia Services Group Limited presents an attractive investment opportunity with strong analyst support and impressive ROCE growth. However, investors should be mindful of the company's high current liabilities and potential risks.
References:
[1] https://www.tipranks.com/stocks/au:vnt/forecast
[2] https://finance.yahoo.com/news/why-24-return-capital-ventia-034728410.html
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