Guru Stocks With Strong 10-Year Returns

VMware and Credit Acceptance among well-performing companies

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May 12, 2016
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According to GuruFocus' All-in-One Screener, the following stocks have had strong performance over the last 10 years with high and steady returns as well as profitability. EPS has also grown steadily with the company’s revenue. Most of these companies have a great cash-to-debt ratio.

VMware Inc. (VMW)

The company during the last 10 years has had an average ROE of 15.17% and an average ROA of 8.29%; the average profitability has been 17.45% for its operating margin and 15.30% for its net margin. EPS had a 10-year growth rate of 28%, supported by revenue that has grown by 27%.

The last reported ROE is 12.51% that is outperforming 69% of its competitors, while ROA of 6.33% is outperforming 67% of other companies in the industry. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 5.50 that is below the industry median of 13.14.

The company develops and market its product and service offerings within three main product groups: SDDC or Software-Defined Data Center, End-User Computing, and Hybrid Cloud Computing. The main guru shareholders are Dodge & Cox with 0.66% of outstanding shares of the company, Paul Singer (Trades, Portfolio) with 0.48%, PRIMECAP Management (Trades, Portfolio) with 0.35%, Jim Simons (Trades, Portfolio) with 0.31%, Ray Dalio (Trades, Portfolio) with 0.12% and Joel Greenblatt (Trades, Portfolio) with 0.1%.

Credit Acceptance Corp. (CACC)

The company during the last 10 years has had an average ROE of 35.83% and an average ROA of 10.64%; the average profitability has been 56.89% for its operating margin and 36.19% for its net margin. EPS had a 10-year growth rate of 28%, supported by revenue that has grown by 23%.

The last reported ROE is 33.76% that is outperforming 95% of its competitors, while ROA of 9.04% is outperforming 88% of other companies in the Global Credit Services industry. Financial strength is rated by GuruFocus as 6/10 with cash to debt of 0.03.

The company offers automobile dealers financing programs that enable them to sell vehicles to consumers regardless of their credit history.

Jim Simons (Trades, Portfolio) who holds 0.95% of outstanding shares of the company is the main guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.03%, Murray Stahl (Trades, Portfolio) with 0.01% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

NewMarket Corp. (NEU)

The company during the last 10 years has had an average ROE of 41.53% and an average ROA of 17.95%; the average profitability has been 15.69% for its operating margin and 9.92% for its net margin. EPS had a 10-year growth rate of 28%, supported by revenue that has grown by 12%.

The last reported ROE is 56.43% that is outperforming 97% of its competitors, while ROA of 18.35% is outperforming 94% of other companies in the Global Specialty Chemicals industry. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 0.23 that is below the industry median of 0.74.

The company is a holding company of Afton Chemical Corporation, Ethyl Corporation, NewMarket Services Corporation and NewMarket Development Corporation.

Jim Simons (Trades, Portfolio), who holds 0.4% of outstanding shares of the company, is the main guru investor followed by Mario Gabelli (Trades, Portfolio) with 0.14%, Murray Stahl (Trades, Portfolio) with 0.01% and Murray Stahl (Trades, Portfolio) with 0.01%.

Virtusa Corp. (VRTU)

The company during the last 10 years has had an average ROE of 10.64% and an average ROA of 8.37%; the average profitability has been 9.23% for its operating margin and 7.98% for its net margin. EPS had a 10-year growth rate of 27%, supported by revenue that has grown by 12%.

The last reported ROE is 10.22% that is outperforming 63% of its competitors, while ROA of 8.71% is outperforming 77% of other companies in the Global Information Technology Services industry. Financial strength is rated by GuruFocus as 5/10 with no debt.

The company is an information technology services company. It uses an offshore delivery model to provide a range of information technology services, including IT consulting, technology implementation and application outsourcing.

The main guru shareholders are Columbia Wanger (Trades, Portfolio) with 4.51% of outstanding shares, Jim Simons (Trades, Portfolio) with 0.72% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

Medifast Inc. (MED)

The company during the last 10 years has had an average ROE of 22.04% and an average ROA of 16.16%; the average profitability has been 9.97% for its operating margin and 6.47% for its net margin. EPS had a 10-year growth rate of 26%, supported by revenue that has grown by 23%.

The last reported ROE is 23.38% that is outperforming 86% of its competitors, while ROA of 17.13% is outperforming 94% of other companies in the Global Specialty Retail industry. Financial strength is rated by GuruFocus as 7/10 with cash to debt of 306.43 that is above industry median of 0.98.

The company is engaged in the productions, distributions, and sales of weight loss and weight management products and other consumable health and diet products.

Jim Simons (Trades, Portfolio), who holds 6.31% of outstanding shares, is the main guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 0.76%.

Boston Beer Co Inc. (SAM)

The company during the last 10 years has had an average ROE of 23.26% and an average ROA of 16.52%; the average profitability has been 15.68% for its operating margin and 9.72% for its net margin. EPS had a 10-year growth rate of 25%, supported by revenue that has grown by 16%.

The last reported ROE is 19.10% that is outperforming 83% of its competitors, while ROA of 13.93% is outperforming 89% of other companies in the industry. Financial strength is rated by GuruFocus as 9/10 with a cash to debt of 108.55 that is above the industry median of 0.83.

It produces malt beverages and hard cider at company-owned breweries and under contract arrangements at other brewery locations.

The main guru shareholders are Ron Baron (Trades, Portfolio) who holds 2.89% of outstanding shares, Ken Fisher (Trades, Portfolio) with 2.71%, Joel Greenblatt (Trades, Portfolio) with 1.66%, Jim Simons (Trades, Portfolio) with 0.34%, Mario Gabelli (Trades, Portfolio) with 0.18%, Murray Stahl (Trades, Portfolio) with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

F5 Networks Inc. (FIFV)

The company during the last 10 years has had an average ROE of 18.06% and an average ROA of 12.92%; the average profitability has been 27.29% for its operating margin and 17.56% for its net margin. EPS had a 10-year growth rate of 25%, supported by revenue that has grown by 22%.

The last reported ROE is 27.72% that is outperforming 90% of its competitors, while ROA of 15.56% is outperforming 90% of other companies in the industry. Financial strength is rated by GuruFocus as 7/10 with no debt.

The company provides Application Delivery Networking (ADN) technology that secures and optimizes the delivery of network-based applications and the security, performance and availability of servers, and other network resources.

First Eagle Investment (Trades, Portfolio), who holds 2.23% of outstanding shares is the main guru shareholder, followed by Jim Simons (Trades, Portfolio) with 1.54%, Columbia Wanger (Trades, Portfolio) with 1.25%, PRIMECAP Management (Trades, Portfolio) with 1.13%, Joel Greenblatt (Trades, Portfolio) with 0.53%, Jeremy Grantham (Trades, Portfolio) with 0.24% and Ray Dalio (Trades, Portfolio) with 0.22%.