USA: fastest-growing profits

USA: fastest-growing profits

When talking about growing companies, we usually mean only growing stocks. This is, however, rather tricky: quotes growth may be speculative. The growth of profit is a much more reliable indicator of a company's development. Today we start a series of articles devoted to the most actively growing (in terms of profits) companies for the last five years, since April 2011.

Our today's overview is devoted to the US companies, whose profit growth was most significant among others during the last five years. whose capitaization exceeds $300M, and the P/E coefficient is lower than 30. The latter means that the quotes are not overestimated.


1. Independence Realty Trust

  • Ticker: IRT
  • Exchange: NYSE
  • Capitalization: $315M
  • Annual turnover: $110M
  • P/E: 8.3
  • Annual dividends: 10.8%
  • Quotes change: –29%
  • 5-year profit growth: 497%
  • 5-year turnover growth: 628%

One of the many buildings owned by Independence Realty. 

A real estate investor. The company specializes on luxurious buildings, like houses in prestigious areas of the US. It owns a lot of real estate objects and participates in investment projects.

irt копия.jpg

The prices on the company's stocks were especially high in 2014. Now they are as much as two times lower. The company pays dividends 12 times a year. The size of the dividends depends on the quotes, but in fact they are rather big.

Independence Realty Trust is likely to be the most attractive for investors among the companies in this ranking. The dividends are truly high, the P/E coefficient is low (which means, the dividends are backed by the profits), the stock prices are quite low, and they are unlikely to fall dramatically. The growth of turnover is even more significant than the profit growth. All these things considered, we can derive that Independence Realty's success is not just driven by the fortune. 


2. Tumi Holdings 

  • Ticker: TUMI
  • Stock exchange: NYSE
  • Capitalization: $1.8B
  • Annual turnover: $548M
  • P/E: 29
  • Dividends: –
  • Quotes change: +11%
  • 5-year profit growth: 260%
  • 5-year turnover growth: 17%

The company's logo on a TUMI bag

A bags and suitcases producer founded in 1975. It has opened 120 shops and 200 boutiques all around the world so far. TUMI also makes other accessories like belts, pens, and even solar accus for mobile devices. tumi копия.jpg

TUMI's quotes are quite volatile. They have been changing between $16 to $27 recently, and the most dramatic growth took place at the beginning of 2016. 

If compared with other companies in this overview, TUMI is not interesting as an investment opportunity. It does not pay dividends, its P/E is rather high, and the stock price is likely to go back down. 


3. Enanta Pharmaceuticals 

  • Ticker: ENTA
  • Stock exchange: NASDAQ
  • Capitalization: $521M
  • Annual turnover: $161M
  • P/E: 8.3
  • Dividends: –
  • Quotes change: –14%
  • 5-year profit growth: 226%
  • 5-year turnover growth: 48%

Enanta Pharmaceuticals office

A biotechnological company that develops low-molecular treatments for hepatitis and HIV. Its most well-known product is paritaprevir used in hepatitis C treatment. In the development of new products Enanta cooperates with another quickly-developing company, AbbVie.

enta копия.jpg

Just like Independence Realty Trust, Enanta Pharmaceuticals enjoyed the highest stock prices 2014. Later on, they decreased significantly. They are, however, higher now than in 2013, and, judging by the P/E, they are unlikely to fall further. 

Enanta Pharmaceuticals is quite attractive for investors, but it does not pay dividends. The stock prices are, however, low enogh to admit that they may start growing soon.


4. Mattress Firm Holding 

  • Ticker: MFRM
  • Stock Exchange: NASDAQ
  • Capitalization: $1.6B
  • Annual turnover: $2.5B
  • P/E: 23
  • Dividends: –
  • Quotes change: –43%
  • 5-year profit growth: 184%
  • 5-year turnover growth: 39%

Mattress Firm shop

A retail company that deals with mattresses and other sleeping gear. It was founded in 1986. The company owns over 1,600 shops in the US. Its main brands are Tempur-Pedic, Stearns & Foster, Sealy, Serta, Simmons Beautyrest, Lux Living, Hampton & Rhodes. The variety of shop logos includes Mattress Firm, Sleep Train, Sleep country. 

mfrm копия.jpg

The same situation again: the price peak in 2014 and a drastic fall afterwards. 

Mattress Firm has quite a low attractivity from the point of view of an investor. It pays no dividends, while the P/E is high: the prices may fall even further. 


5. Viad Corp 

  • Ticker: VVI
  • Stock Exchange: NYSE
  • Capitalization: $576M
  • Annual turnover: $1.1B
  • P/E: 21
  • Dividends: 1.4%
  • Quotes change: +2%
  • 5-year profit growth: 175%
  • 5-year turnover growth: 5%

The prominent VIAD Tower in Arizona

An intermational provider of convention and event marketing services. It operates in the North America, Europe and the UAE. The company also offers touristic services in the US and Canada, in particular, it organizes tours to different national parks and exotic areas of Alaska. 

vvi копия.jpg

VIAD's quotes halved during the crisis of 2007-2008. Since then, they have never reached the maximum; however, they are growing steadily. The company pays dividends four times a year. The dividends are, however, low, and the P/E is high, so its stocks are not a very attractive investment opportunity.

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