5 Companies Growing in Profitability

Toyota, Foot Locker top the list

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Dec 22, 2017
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According to the GuruFocus All-In-One Screener, the following companies have grown their revenues and earnings over the past several years.

Toyota Motor Corp. (TM, Financial) has a five-year annual revenue growth rate of 9% and a five-year annual earnings per share (EPS) growth rate of 42%. The stock is trading with a price-earnings (P/E) ratio of 11.2 and has a positive six-month return of 24.7%.

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The car manufacturer has a market cap of $186.41 billion and an enterprise value of $326.03 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. While the return on equity (ROE) of 11.14% is outperforming the sector, the return on assets (ROA) of 4.07% is underperforming 52% of companies in the Global Auto Manufacturers industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.24 is below the industry median of 0.74.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio) with 0.03% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.03% and Charles Brandes (Trades, Portfolio) with 0.01%.

Fifth Third Bancorp (FITB, Financial) has a five-year annual revenue growth rate of 5% and a five-year annual EPS growth rate of 9%. The stock is trading with a P/E ratio of 11.4 and has a positive six-month return of 20.5%.

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The bank has a market cap of $21.53 billion and an enterprise value of $37.1 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of 12.06% and ROA of 1.47% are outperforming 53% of companies in the Global Banks - Regional – U.S. industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.11 is below the industry median of 2.05.

The T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.39% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.04% and Richard Pzena (Trades, Portfolio) with 0.45%.

Foot Locker Inc. (FL, Financial) has a five-year annual revenue growth rate of 10% and a five-year annual EPS growth rate of 20%. The stock is trading with a P/E ratio of 11.7 and has a negative six-month return of 6.8%.

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The footwear retailer has a market cap of $5.74 billion and an enterprise value of $4.98 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The ROE of 19.03% and ROA of 13.62% are outperforming 84% of companies in the Global Footwear and Accessories industry. Financial strength has a rating of 8 out of 10. The cash-debt ratio of 7.06 is below the industry median of 1.50.

The company's largest guru shareholder is Simons with 0.59% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.28% and Ray Dalio (Trades, Portfolio) with 0.2%.

Principal Financial Group Inc. (PFG, Financial) has a five-year annual revenue growth rate of 9% and a five-year annual EPS growth rate of 18%. The stock is trading with a P/E ratio of 11.7 and has a positive six-month return of 11.1%.

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The investment management company has a market cap of $20.56 billion and an enterprise value of $21.08 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. While the ROE of 16.30% is outperforming the sector, the ROA of 0.76% is underperforming 57% of companies in the Global Insurance - Life industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.86 is below the industry median of 6.48.

Discovery Communications Inc. (DISCA, Financial) (DISCK, Financial) has a five-year annual revenue growth rate of 24% and a five-year annual EPS growth rate of 14%. The class A stock is trading with a P/E ratio of 11.7 and has a negative six-month return of 12.3%. The class C stock has a negative six-month return of 14.6%.

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The media and entertainment company has a market cap of $8.25 billion and an enterprise value of $15.96 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The ROE of 14.20% and the ROA of 6.40% are outperforming 76% of companies in the Global Media - Diversified industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.48 is below the industry median of 1.47.

With 4.94% of outstanding class A shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio) with 0.55% and Dalio with 0.27%.

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Hotchkis & Wiley also has the largest holding of class C shares with 1.94%, followed by Arnold Van Den Berg (Trades, Portfolio) with 0.46%, Gabelli with 0.34% and Steven Cohen (Trades, Portfolio) with 0.28%.

Disclosure: I do not own any shares of any stocks mentioned in this article.