Q: CSU ROIC was 28.8% in 2020 and has been dropping each year since to 17.93 in 2022 and 14.15% TTM, is this something to be concerned about?
5i Research Answer:
It is something to watch, but not a worry yet. As CSU grows it will be more difficult to see prior returns, and the company itself said a couple of years ago that it would be lowering its hurdle rates on acquisitions. ROE is still quite high but is also down over the past few years. Investors do not yet seem to care, though, with the stock hitting new highs nearly daily.