When researching a small-cap company for investment: Start | ACEink Official

When researching a small-cap company for investment:

Start with Dividend Yields:

Check if the company is paying dividends.

If Not Paying Dividends:

Look for Return on Equity (ROE) and Return on Capital Employed (ROCE).

If ROE and ROCE Above 15%:
Proceed with further analysis.

If ROE and ROCE Below 15%:

Check for Capital Expenditure (CAPEX).

If CAPEX Done:
Expect lower ROCE and ROE for a few years due to CAPEX.

If No CAPEX and Low ROE/ROCE:

If the company hasn't undertaken CAPEX and still has low ROE and ROCE, it may indicate underlying issues with profitability or efficiency.

Disclaimer : This is not an investment advice and this is not an investment recommendation.