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If you’re not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Typically, we’ll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don’t think Swift Haulage Berhad (KLSE:SWIFT) has the makings of a multi-bagger going forward, but let’s have a look at why that may be.

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For those that aren’t sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Swift Haulage Berhad:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.037 = RM52m ÷ (RM1.7b – RM318m) (Based on the trailing twelve months to June 2025).

Thus, Swift Haulage Berhad has an ROCE of 3.7%. On its own that’s a low return on capital but it’s in line with the industry’s average returns of 3.7%.

See our latest analysis for Swift Haulage Berhad

Above you can see how the current ROCE for Swift Haulage Berhad compares to its prior returns on capital, but there’s only so much you can tell from the past. If you’re interested, you can view the analysts predictions in our free analyst report for Swift Haulage Berhad .

When we looked at the ROCE trend at Swift Haulage Berhad, we didn’t gain much confidence. Over the last five years, returns on capital have decreased to 3.7% from 8.2% five years ago. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It may take some time before the company starts to see any change in earnings from these investments.

To conclude, we’ve found that Swift Haulage Berhad is reinvesting in the business, but returns have been falling. And investors appear hesitant that the trends will pick up because the stock has fallen 15% in the last three years. In any case, the stock doesn’t have these traits of a multi-bagger discussed above, so if that’s what you’re looking for, we think you’d have more luck elsewhere.

If you want to know some of the risks facing Swift Haulage Berhad we’ve found 4 warning signs (1 is significant!) that you should be aware of before investing here.

While Swift Haulage Berhad isn’t earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.