We Like These Underlying Return On Capital Trends At MCH Group (VTX:MCHN)

Simply Wall St

Mon, February 16, 2026 at 1:34 PM GMT+9 3 min read

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MCHN.SW

-2.17%

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things, we’ll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company’s amount of capital employed. This shows us that it’s a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. So when we looked at MCH Group (VTX:MCHN) and its trend of ROCE, we really liked what we saw.

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What Is Return On Capital Employed (ROCE)?

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. To calculate this metric for MCH Group, this is the formula:

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

0.066 = CHF15m ÷ (CHF371m - CHF138m) (Based on the trailing twelve months to June 2025).

Therefore, MCH Group has an ROCE of 6.6%. Ultimately, that’s a low return and it under-performs the Media industry average of 10%.

See our latest analysis for MCH Group

SWX:MCHN Return on Capital Employed February 16th 2026

While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you want to delve into the historical earnings , check out these free graphs detailing revenue and cash flow performance of MCH Group.

What Does the ROCE Trend For MCH Group Tell Us?

Like most people, we’re pleased that MCH Group is now generating some pretax earnings. The company was generating losses five years ago, but now it’s turned around, earning 6.6% which is no doubt a relief for some early shareholders. At first glance, it seems the business is getting more proficient at generating returns, because over the same period, the amount of capital employed has reduced by 26%. This could potentially mean that the company is selling some of its assets.

For the record though, there was a noticeable increase in the company’s current liabilities over the period, so we would attribute some of the ROCE growth to that. Effectively this means that suppliers or short-term creditors are now funding 37% of the business, which is more than it was five years ago. It’s worth keeping an eye on this because as the percentage of current liabilities to total assets increases, some aspects of risk also increase.

Story Continues  

The Bottom Line On MCH Group’s ROCE

From what we’ve seen above, MCH Group has managed to increase it’s returns on capital all the while reducing it’s capital base. Astute investors may have an opportunity here because the stock has declined 67% in the last five years. That being the case, research into the company’s current valuation metrics and future prospects seems fitting.

MCH Group does have some risks, we noticed ** 2 warning signs ** (and 1 which shouldn’t be ignored) we think you should know about.

If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

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.

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