(VIANEWS) – Capital Southwest Corporation (CSWC), Main Street Capital Corporation (MAIN), BRT Realty Trust (BRT) are the highest sales growth and return on equity stocks on this list.
Here is a list of stocks with an above 5% expected next quarter sales growth, and a 3% or higher return on equity. May these stocks be a good medium-term investment option?
1. Capital Southwest Corporation (CSWC)
59.2% sales growth and 6.54% return on equity
Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. It prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and products, the firm seeks to invest in businesses that develop and manufacture highly differentiated chemicals and products including adhesives, coatings and sealants, catalysts and absorbents, cosmeceuticals, fine chemicals, flavors and fragrances, performance lubricants, polymers, plastics and composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, specified high performance materials for fire protection and oilfield applications. It may also invest in exceptional opportunities in building products. The firm seeks to invest in the United States. The firm seeks to make investments ranging from $5 to $25 million in securities. It seeks to make equity investments up to $5 million and debt investments between $5 million and $20 million and co-invest in transaction size upto $40 million. It prefers to invest in companies with revenues approaching above $10 million, profitable operations, historical growth rate of at least 15 percent per year. . Within the lower middle market, it seeks to invest in with less than $15 million in EBITDA and also opportunistically invests in the upper middle market, generally defined as companies with EBITDA in excess of $50 million. In addition to making direct investments, the firm allocates capital to syndicated first and second lien term loans in the upper middle market. Criteria for Upper Middle Market Syndicated 1st Lien is EBITDA Size more than $30 million, Closing Leverage greater than 4 times, investment hold size between $5 million and $7 million, investment yield greater than 6.5%. Criteria for Upper Middle Market Syndicated 2nd Lien is EBITDA Size more than $50 million, Closing Leverage greater than 6 times, investment hold size between $5 million and $7 million, investment yield greater than 9%. It prefers to take a majority and minority stake. The firm has the flexibility to hold investments for very long period in its portfolio companies. It may also invest through warrants. The firm prefers to take Board participation in its portfolio companies. Capital Southwest Corporation was founded on April 19, 1961 and is based in Dallas, Texas.
Earnings Per Share
As for profitability, Capital Southwest Corporation has a trailing twelve months EPS of $1.08.
PE Ratio
Capital Southwest Corporation has a trailing twelve months price to earnings ratio of 18.31. Meaning, the purchaser of the share is investing $18.31 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 6.54%.
Growth Estimates Quarters
The company’s growth estimates for the ongoing quarter and the next is 30.6% and 25%, respectively.
Dividend Yield
As claimed by Morningstar, Inc., the next dividend payment is on Jun 13, 2023, the estimated forward annual dividend rate is 2.36 and the estimated forward annual dividend yield is 11.99%.
Volume
Today’s last reported volume for Capital Southwest Corporation is 162477 which is 52.34% below its average volume of 340937.
Revenue Growth
Year-on-year quarterly revenue growth grew by 76.9%, now sitting on 119.3M for the twelve trailing months.
Previous days news about Capital Southwest Corporation(CSWC)
- According to Zacks on Wednesday, 28 June, "It seems to be a wise idea to add Capital Southwest Corporation (CSWC Quick QuoteCSWC – Free Report) stock to your portfolio now. "
- According to Zacks on Thursday, 29 June, "Capital Southwest Corporation dividend-yield-ttm | Capital Southwest Corporation Quote"
2. Main Street Capital Corporation (MAIN)
35.7% sales growth and 12.65% return on equity
Main Street Capital Corporation is a principal investment firm that primarily provides equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio. Main Street's lower middle market companies generally have annual revenues between $10 million and $150 million. Main Street's middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.
Earnings Per Share
As for profitability, Main Street Capital Corporation has a trailing twelve months EPS of $3.33.
PE Ratio
Main Street Capital Corporation has a trailing twelve months price to earnings ratio of 11.47. Meaning, the purchaser of the share is investing $11.47 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 12.65%.
Revenue Growth
Year-on-year quarterly revenue growth grew by 51.5%, now sitting on 417.72M for the twelve trailing months.
Earnings Before Interest, Taxes, Depreciation, and Amortization
Main Street Capital Corporation’s EBITDA is 10.01.
Volume
Today’s last reported volume for Main Street Capital Corporation is 368718 which is 8.73% above its average volume of 339101.
3. BRT Realty Trust (BRT)
24.8% sales growth and 15.08% return on equity
BRT is a real estate investment trust that owns, operates and develops multi-family properties.
Earnings Per Share
As for profitability, BRT Realty Trust has a trailing twelve months EPS of $1.83.
PE Ratio
BRT Realty Trust has a trailing twelve months price to earnings ratio of 10.44. Meaning, the purchaser of the share is investing $10.44 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 15.08%.
Yearly Top and Bottom Value
BRT Realty Trust’s stock is valued at $19.10 at 20:22 EST, way under its 52-week high of $25.67 and way above its 52-week low of $16.43.
Moving Average
BRT Realty Trust’s worth is higher than its 50-day moving average of $18.36 and below its 200-day moving average of $20.00.
4. BanColombia S.A. (CIB)
22.7% sales growth and 19.9% return on equity
Bancolombia S. A. provides various banking products and services to individual and corporate customers in Colombia, Panama, Puerto Rico, El Salvador, Costa Rica, and Guatemala. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; financial support to real estate developers and mortgages for individuals and companies; and financial and operating leasing services. The company also provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services, including selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency transaction services; life, auto, commercial, and homeowner's insurance products; and online and computer banking services. Further, the company provides investment banking services comprising project and acquisition finance, debt and equity capital markets, principal investments, M&A, restructurings, and structured financing; money market accounts, mutual and pension funds, private equity funds, payment trust, custody, and corporate trust; and digital banking platform, transportation, securities brokerage, maintenance and remodeling, advertising and marketing, and outsourcing services, as well as credit cards. As of December 31, 2020, it operated 1,057 branches; 18,631 banking correspondents; 535 PAMs; 215 kiosks in El Salvador and 137 in Colombia; and 6,124 automatic teller machines. Bancolombia S.A. was incorporated in 1945 and is headquartered in MedellÃn, Colombia.
Earnings Per Share
As for profitability, BanColombia S.A. has a trailing twelve months EPS of $6.55.
PE Ratio
BanColombia S.A. has a trailing twelve months price to earnings ratio of 4.01. Meaning, the purchaser of the share is investing $4.01 for every dollar of annual earnings.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 19.9%.
Volume
Today’s last reported volume for BanColombia S.A. is 200030 which is 44.74% below its average volume of 362019.
Moving Average
BanColombia S.A.’s worth is above its 50-day moving average of $25.99 and under its 200-day moving average of $26.38.
Dividend Yield
According to Morningstar, Inc., the next dividend payment is on Jun 28, 2023, the estimated forward annual dividend rate is 2.68 and the estimated forward annual dividend yield is 9.92%.
