10 Years of Strong Returns: Priceline, Biogen

Companies with high profitability and strong returns

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Apr 26, 2016
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According to GuruFocus' All-in-One Screener, the following stocks have had strong performances over the last 10 years with high and steady returns as well as profitability. EPS has also grown steadily with the companies' revenues. Most of these companies have great cash-to-debt ratios.

KapStone Paper And Packaging Corp. (KS)

The company during the last 10 years has had an average ROE of 18.84% and an average ROA of 6.66%; the average profitability has been 11.78% for its operating margin and 7.47% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 43%, supported by revenue that has grown by 75%.

The last reported ROE of 12.97% is outperforming 79% of its competitors while ROA of 3.56% is outperforming 67% of other companies in the Global Paper & Paper Products industry. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 0.26 that is below the industry median of 0.47.

The company produces and sells different unbleached kraft, linerboard, saturating kraft and unbleached folding carton board in the U.S. and globally.

The company's main investors among the gurus are John Keeley (Trades, Portfolio), who holds 1.37% of outstanding shares, Steven Cohen (Trades, Portfolio) with 0.75%, Jim Simons (Trades, Portfolio) with 0.27%, Chuck Royce (Trades, Portfolio) with 0.03%, Jeremy Grantham (Trades, Portfolio) with 0.01% and David Dreman (Trades, Portfolio) with 0.01%.

Companhia de Bebidas das Americas Ambev. (ABV)

The company during the last 10 years has had an average ROE of 27.31% and an average ROA of 15.53%; the profitability average has been 39.95% for its operating margin and 25.13% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 42%, supported by revenue that has grown by 22%.

The last reported ROE is 27.32% that is outperforming 90% of its competitors while ROA of 15.53% is outperforming 92% of other companies in the Global Beverages - Brewers industry. Financial strength is rated by GuruFocus as 6/10 with cash to debt of 3.84 that is above the industry median of 0.75.

The company produces and sells beer, draft beer, soft drinks, other nonalcoholic beverages, malt and food in general.

Ambev SA. (ABEV)

The company during the last 10 years has had an average ROE of 27.32% and an average ROA of 26.56%; the average profitability has been 39.95% for its operating margin and 25.13% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 42%, supported by revenue that has grown by 21%.

The last reported ROE is 27.32% that is outperforming 90% of its competitors while ROA of 15.53% is outperforming 92% of other companies in the Global Beverages - Brewers industry. Financial strength is rated by GuruFocus as 6/10 with a cash to debt of 3.84 that is above the industry median of 0.75.

The company operates its business through three zones identified as reportable segments: Latin America North, which includes its operations in Brazil.

Manning & Napier Advisors Inc., which holds 0.57% of outstanding shares, is the company's main investor among the gurus followed by Ken Fisher (Trades, Portfolio) with 0.14%, Simons with 0.07% and Sarah Ketterer (Trades, Portfolio) with 0.01%.

The Priceline Group Inc. (PCLN)

The company during the last 10 years has had an average ROE of 29.61% and an average ROA of 15.43%; the average profitability has been 28.82% for its operating margin and 22.59% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 41%, supported by revenue that has grown by 39%.

The last reported ROE is 29.61% that is outperforming 93% of its competitors while ROA of 15.43% is outperforming 94% of other companies in the Global Leisure industry. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 0.43 that is below the industry median of 0.82.

The company is a provider of online travel and travel-related reservation and search services. The company offers consumers accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands.

The company's main investors among the gurus are Frank Sands (Trades, Portfolio), who holds 2.21% of outstanding shares, Steve Mandel (Trades, Portfolio) with 1.68%, Chase Coleman (Trades, Portfolio) with 1.53%, Dodge & Cox with 1.36%, Andreas Halvorsen (Trades, Portfolio) with 0.79%, Manning & Napier Advisors with 0.65% and John Griffin (Trades, Portfolio) with 0.53%.

Biogen Inc. (BIIB)

The company during the last 10 years has had an average ROE of 33.90% and an average ROA of 19.89%; the average profitability has been 31.63% for its operating margin and 23.31% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 38%, supported by revenue that has grown by 34%.

The last reported ROE is 33.90% that is outperforming 97% of its competitors while ROA of 19.89% is outperforming 96% of other companies in the Global Biotechnology industry. Financial strength is rated by GuruFocus as 9/10 with cash to debt of 0.55 that is below the industry median of 63.48.

The company is a biotechnology company. It discovers, develops, manufactures and markets therapies for the treatment of autoimmune disorders, neurodegenerative diseases and hemophilia.

PRIMECAP Management (Trades, Portfolio), which holds 7.22% of outstanding shares, is the company's main investor among the gurus followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.74%, Sands with 1.54%, Halvorsen with 0.17%, First Eagle Investment (Trades, Portfolio) with 0.09% and Fisher with 0.04%.

CA Inc. (CA)

The company during the last 10 years has had an average ROE of 13.56% and an average ROA of 6.99%; the average profitability has been 26.83% for its operating margin and 18.46% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 37%, supported by revenue that has grown by 35%.

The last reported ROE is 13.56% that is outperforming 71% of its competitors while ROA of 6.99% is outperforming 69% of other companies in the Global Software - Infrastructure industry. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 1.20 that is below the industry median of 12.17.

It is a provider of enterprise information technology (IT) software and solution. It develops and delivers software and services that help organizations manage and secure their IT infrastructures and deliver more flexible IT services.

The company's main investors among the gurus are T Rowe Price Equity Income Fund (Trades, Portfolio), which holds 0.81% of outstanding shares of the company, Barrow, Hanley, Mewhinney & Strauss with 0.61%, Private Capital (Trades, Portfolio) with 0.12%, Grantham with 0.11% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

MarketAxess Holdings Inc. (MKTX)

The company during the last 10 years has had an average ROE of 26.63% and an average ROA of 23.86%; the average profitability has been 39.88% for its operating margin and 24.63% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 35%, supported by revenue that has grown by 49%.

The last reported ROE is 26.63% that is outperforming 89% of its competitors while ROA of 23.86% is outperforming 95% of companies in the Global Capital Markets industry. Financial strength is rated by GuruFocus as 7/10 with no debt.

The company together with its subsidiaries operates an electronic trading platform for corporate bonds and certain other types of fixed-income instruments through which the company's institutional investor clients can access the liquidity provided by its broker-dealer clients.

PRIMECAP Management (Trades, Portfolio), which holds 2.67% of outstanding shares, is the company's main investor among the gurus followed by RS Investment Management (Trades, Portfolio) with 1.39%, Simons with 0.5%, Royce with 0.25%, Ron Baron (Trades, Portfolio) with 0.13%, Murray Stahl (Trades, Portfolio) with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

New Oriental Education & Technology Group Inc. (EDU)

The company during the last 10 years has had an average ROE of 17.55% and an average ROA of 10.90%; the average profitability has been 17.24% for its operating margin and 18.59% for its net margin. Even earnings per share had a strong performance, reporting a 10-year growth rate of 34%, supported by revenue that has grown by 75%.

The last reported ROE is 17.55% that is outperforming 82% of its competitors while ROA of 10.90% is outperforming 84% of other companies in the Global Education & Training Services industry. Financial strength is rated by GuruFocus as 7/10 with no debt.

The company is a provider of private educational services in China based on the number of program offerings, total student enrollments and geographic presence.

The company's main investors among the gurus are Dodge & Cox, which holds 4.81% of outstanding shares of the company, Ketterer with 0.27%, Simons with 0.13%, Pioneer Investments (Trades, Portfolio) with 0.08% and Prem Watsa (Trades, Portfolio) with 0.01%.