The Best Growth Investments – Low Dividends, High Growth And Return

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Oct 22, 2012
Growth stocks are very good investment vehicles to boost your wealth if you have paid an acceptable price for the business in the past. If so, your return on investment should be high enough to compensate for all underlying risks. I screened the best 100 growth stocks from with the highest rate of 3-year total return. Below the ten best stocks are only two that pay dividends; eight are currently recommended to buy and four of the 100 best growth stocks have a triple-digit return. Remarkable is the low debt and high growth from the stocks. Sometimes it makes sense to accept a low dividends or to renounce dividends in exchange for growth and return.

Here are my favorite stocks:

Lululemon Athletica (LULU) has a market capitalization of $9.94 billion. The company employs 5,807 people, generates revenue of $1,000.84 million and has a net income of $184.96 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $316.98 million. The EBITDA margin is 31.67 percent (operating margin 28.67 percent and net profit margin 18.48 percent).

Financial Analysis: The company has no long-term debt. Due to the financial situation, a return on equity of 37.12 percent was realized. Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, the company paid no dividends to shareholders. LULU has a total 3-Year total return of 109 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 46.46, P/S ratio 7.77 and P/B ratio 16.48. Dividend Yield: None percent. The beta ratio is 2.38.

Chipotle Mexican Grill (CMG) has a market capitalization of $11.69 billion. The company employs 30,940 people, generates revenue of $2,269.55 million and has a net income of $214.94 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $425.50 million. The EBITDA margin is 18.75 percent (operating margin 15.45 percent and net profit margin 9.47 percent).

Financial Analysis: The total debt represents 0.26 percent of the company's assets and the total debt in relation to the equity amounts to 0.35 percent. Due to the financial situation, a return on equity of 23.17 percent was realized. Twelve trailing months earnings per share reached a value of $8.60. Last fiscal year, the company paid $0.00 in form of dividends to shareholders. CMG has a total 3-Year total return of 68 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.25, P/S ratio 3.39 and P/B ratio 7.27. Dividend Yield: None percent. The beta ratio is 0.88.

HollyFrontier (HFC) has a market capitalization of $7.77 billion. The company employs 2,382 people, generates revenue of $15,439.53 million and has a net income of $1,059.70 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,876.14 million. The EBITDA margin is 12.15 percent (operating margin 11.12 percent and net profit margin 6.86 percent).

Financial Analysis: The total debt represents 11.78 percent of the company's assets and the total debt in relation to the equity amounts to 23.34 percent. Due to the financial situation, a return on equity of 34.68 percent was realized. Twelve trailing months earnings per share reached a value of $7.09. Last fiscal year, the company paid $0.34 in form of dividends to shareholders. HFC has a total 3-Year total return of 64 percent.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.38, P/S ratio 0.50 and P/B ratio 1.54. Dividend Yield: 1.57 percent. The beta ratio is 1.01.

Take a closer look at the full table of the 10 best growth investments over the past three years. The average price to earnings ratio (P/E ratio) amounts to 43.40 and forward P/E ratio is 19.87. The dividend yield has a value of 0.48 percent. Price to book ratio is 7.22 and price to sales ratio 5.64. The operating margin amounts to 21.52 percent. The average stock is low leveraged and has a debt to equity ratio of 0.24.

Related stock ticker symbols:

QCOR, DDD, TPCG, LULU, CTRX, CRUS, PCLN, ALXN, CMG, HFC

Selected Articles:

· Cheapest Large Caps With Highest Expected Growth As Of September 2012

· 12 Best Dividend Contenders With High Growth And Low Debt

· 15 Stocks With Double-Digit Yields And Double-Digit Growth

· Dividend Shares: For Sophisticated Investors - A Simple Analysis From The German DAX 30

· 20 Global Brand Companies With Highest Dividend Yield

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* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

The Best Growing Companies with Highest 3-Year Total Return Researched by "long-term-investments.blogspot.com."