--- title: "There's Been No Shortage Of Growth Recently For Gulf Marine Services' (LON:GMS) Returns On Capital" type: "News" locale: "en" url: "https://longbridge.com/en/news/274097747.md" description: "Gulf Marine Services (LON:GMS) has shown significant growth in its Return on Capital Employed (ROCE), which has increased by 290% over the past five years, despite flat capital employed. Currently, the ROCE stands at 11%, close to the industry average of 12%. This indicates improved efficiencies within the company. Investors are encouraged to research further into Gulf Marine Services' long-term growth prospects, although there are two warning signs to consider." datetime: "2026-01-29T06:02:57.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/274097747.md) - [en](https://longbridge.com/en/news/274097747.md) - [zh-HK](https://longbridge.com/zh-HK/news/274097747.md) --- # There's Been No Shortage Of Growth Recently For Gulf Marine Services' (LON:GMS) Returns On Capital To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will show two trends; firstly a growing _return_ on capital employed (ROCE) and secondly, an increasing _amount_ 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. With that in mind, we've noticed some promising trends at **Gulf Marine Services** (LON:GMS) so let's look a bit deeper. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. ## Return On Capital Employed (ROCE): What Is It? Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Gulf Marine Services, this is the formula: **Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)** 0.11 = US$63m ÷ (US$670m - US$99m) _(Based on the trailing twelve months to June 2025)_. So, **Gulf Marine Services has an ROCE of 11%.** In absolute terms, that's a pretty normal return, and it's somewhat close to the Energy Services industry average of 12%. See our latest analysis for Gulf Marine Services LSE:GMS Return on Capital Employed January 29th 2026 Above you can see how the current ROCE for Gulf Marine Services compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Gulf Marine Services for **free.** ## How Are Returns Trending? Gulf Marine Services' ROCE growth is quite impressive. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 290% in that same time. Basically the business is generating higher returns from the same amount of capital and that is proof that there are improvements in the company's efficiencies. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects. ## Our Take On Gulf Marine Services' ROCE In summary, we're delighted to see that Gulf Marine Services has been able to increase efficiencies and earn higher rates of return on the same amount of capital. And with the stock having performed exceptionally well over the last five years, these patterns are being accounted for by investors. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. One more thing, we've spotted **2 warning signs** facing Gulf Marine Services that you might find interesting. While Gulf Marine Services may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this **free** list here. ### Related Stocks - [GMS.UK](https://longbridge.com/en/quote/GMS.UK.md) ## Related News & Research - [Gulf Marine Services shifts registered office to new London address](https://longbridge.com/en/news/283960838.md) - [UAE's Gulf Marine Services profit plummets after vessel evacuation](https://longbridge.com/en/news/285675769.md) - [Big Tech's $1.2 Trillion Hyperscaler AI Bet Could Ignite the Next Semiconductor ETF Rally](https://longbridge.com/en/news/294843392.md) - [Lockup expiry will offer the next test of investor appetite for SpaceX shares](https://longbridge.com/en/news/294905336.md) - [The Wegovy pill's 'surprise miss' is one reason Novo Nordisk's stock is down](https://longbridge.com/en/news/294862814.md)