(VIANEWS) – Capital Southwest Corporation (CSWC), Netflix (NFLX), Erie Indemnity Company (ERIE) 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)
21.7% sales growth and 13.74% 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 $2.34.
PE Ratio
Capital Southwest Corporation has a trailing twelve months price to earnings ratio of 10.29. Meaning, the purchaser of the share is investing $10.29 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 13.74%.
Sales Growth
Capital Southwest Corporation’s sales growth is 38% for the current quarter and 21.7% for the next.
Revenue Growth
Year-on-year quarterly revenue growth grew by 48.2%, now sitting on 168.9M for the twelve trailing months.
Volume
Today’s last reported volume for Capital Southwest Corporation is 136791 which is 68.65% below its average volume of 436427.
Yearly Top and Bottom Value
Capital Southwest Corporation’s stock is valued at $24.07 at 16:22 EST, under its 52-week high of $26.17 and way above its 52-week low of $17.22.
2. Netflix (NFLX)
16.1% sales growth and 26.15% return on equity
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
Earnings Per Share
As for profitability, Netflix has a trailing twelve months EPS of $12.02.
PE Ratio
Netflix has a trailing twelve months price to earnings ratio of 52.93. Meaning, the purchaser of the share is investing $52.93 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 26.15%.
Yearly Top and Bottom Value
Netflix’s stock is valued at $636.18 at 16:22 EST, above its 52-week high of $624.42.
Growth Estimates Quarters
The company’s growth estimates for the present quarter and the next is 56.3% and 37.1%, respectively.
Sales Growth
Netflix’s sales growth is 13.5% for the current quarter and 16.1% for the next.
Earnings Before Interest, Taxes, Depreciation, and Amortization
Netflix’s EBITDA is 7.98.
3. Erie Indemnity Company (ERIE)
11.2% sales growth and 28.67% return on equity
Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. The company provides sales, underwriting, policy issuance, and renewal services for the policyholders on behalf of the Erie Insurance Exchange. It also offers sales related services, including agent compensation, and sales and advertising support services; and underwriting services comprise underwriting and policy processing; and other services consist of customer services and administrative support services, as well as information technology services. Erie Indemnity Company was incorporated in 1925 and is based in Erie, Pennsylvania.
Earnings Per Share
As for profitability, Erie Indemnity Company has a trailing twelve months EPS of $8.52.
PE Ratio
Erie Indemnity Company has a trailing twelve months price to earnings ratio of 46.97. Meaning, the purchaser of the share is investing $46.97 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 28.67%.
Yearly Top and Bottom Value
Erie Indemnity Company’s stock is valued at $400.21 at 16:22 EST, below its 52-week high of $420.34 and way above its 52-week low of $199.49.
Volume
Today’s last reported volume for Erie Indemnity Company is 88026 which is 23.35% below its average volume of 114854.
Dividend Yield
As stated by Morningstar, Inc., the next dividend payment is on Apr 8, 2024, the estimated forward annual dividend rate is 5.1 and the estimated forward annual dividend yield is 1.27%.
4. Merchants Bancorp (MBIN)
10% sales growth and 17.67% return on equity
Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family and healthcare facilities. This segment also offers customized loan products for need-based skilled nursing facilities, such as independent living, assisted living, and memory care; and tax credit equity syndicator service. The Mortgage Warehousing segment funds agency eligible residential loans, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, which includes retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and small business administration lending. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.
Earnings Per Share
As for profitability, Merchants Bancorp has a trailing twelve months EPS of $5.64.
PE Ratio
Merchants Bancorp has a trailing twelve months price to earnings ratio of 7.66. Meaning, the purchaser of the share is investing $7.66 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 17.67%.
Revenue Growth
Year-on-year quarterly revenue growth grew by 35.8%, now sitting on 522.51M for the twelve trailing months.
5. Franklin Resources (BEN)
8.1% sales growth and 8.43% return on equity
Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.
Earnings Per Share
As for profitability, Franklin Resources has a trailing twelve months EPS of $1.9.
PE Ratio
Franklin Resources has a trailing twelve months price to earnings ratio of 14.36. Meaning, the purchaser of the share is investing $14.36 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 8.43%.
Volume
Today’s last reported volume for Franklin Resources is 1632740 which is 52.41% below its average volume of 3431130.
Earnings Before Interest, Taxes, Depreciation, and Amortization
Franklin Resources’s EBITDA is 47.91.
