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Alberto Abaterusso
Alberto Abaterusso
Articles (2089) 

3 Stocks Growing Capex Fast

Allocations to the purchase of fixed assets may anticipate growth

May 22, 2020 | About:

The following companies have grown their allocations to the acquisition of fixed assets substantially over the past five years. This may anticipate higher revenues, as these companies likely expect an increase in the demand for their goods and services in the near future.

Sanara MedTech Inc

The first company that meets the above-listed criteria is Sanara MedTech Inc (SMTI).

The Fort Worth, Texas-based developer and distributor of biotech products to physicians and healthcare facilities in the United States purchased property and equipment and intangible assets worth $1.75 million in full-year 2019. This increased enormously compared to just $8.1 thousand spent in full year 2014.

The share price has increased by nearly 210% over the past year to close at $12 on May 21 for a market capitalization of $74.44 billion.

The stock has a price-book ratio of 8.41 versus the industry median of 2.31 and a price-sales ratio of 2.86 compared to the industry median of 1.53.

Azure Power Global Ltd

The second company that meets the above-listed criteria is Azure Power Global Ltd (NYSE:AZRE).

The New Delhi-based Indian solar energy company has allocated $374.26 million to the purchase of properties, plants and equipment in full-year 2019, which represented amazing growth compared to the $6.11 million spent in full-year 2014.

Wall Street analysts predict that Azure Power Global Ltd will increase its EPS by nearly 110% every year over the next five years, while the S&P 500 is expected to grow EPS by 4% per year over the next five years. As of May, two sell-side analysts recommended a buy rating for this stock with an average target price of $21.44 per share.

The share price has risen by 28% in the past year, closing at a price of $15 on May 21 for a market capitalization of $714.54 million.

The stock has a price-book ratio of 1.58 versus the industry median of 1.24 and a price-sales ratio of 3.69 versus the industry median of 1.93.

Apollo Medical Holdings Inc

The third company that meets the above-listed criteria is Apollo Medical Holdings Inc (NASDAQ:AMEH).

The Alhambra, California-based provider of medical care services has allocated $1.04 million to the purchase of property and equipment in full-year 2019, growing significantly from $23 thousand spent in full year 2014.

Apollo Medical Holdings is predicted to increase its EPS by 92.3% this year, according to Wall Street analysts’ estimates, compared to the S&P 500's expected EPS decline of 18%. As of May, one analyst recommended a buy rating for this stock with a target price of $23 per share.

The share price has declined 10% in the past year, closing at $17.54 on May 21 for a market capitalization of $624.39.

The stock has a price-earnings ratio of 47.41 versus the industry median of 23.01, a price-book ratio of 3.22 versus the industry median of 2.31 and a price-sales ratio of 1.17 versus the industry median of 1.53.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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