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The Screener.co stock screener currently provides five years and five quarters of financial history for US companies (and has plans to add additional periods of history). In addition, it has pre-calculated growth rates for key financial metrics and the ability to define custom screening formulas. This allows us to automatically run the following screen:

Field

op

Criteria

Exchange Country

=

"USA"

Exchange Traded On

!=

"Over The Counter"

Total Revenue(A)

>=

Total Revenue(A-1)

Total Revenue(A-1)

>=

Total Revenue(A-2)

Total Revenue(A-2)

>=

Total Revenue(A-3)

Total Revenue(A-3)

>=

Total Revenue(A-4)

EPS growth rate-5 year

>=

0.2

Total Debt(I)

<

EBITDA(A) * 2

Current EV/EBITDA

<=

10

This screen requires four consecutive YoY revenue increases, a 20+% EPS growth rate over the last five years, total debt less than two times its most recent annual EBITDA (to ensure the company can easily service its debt), and an EV/EBITDA ratio of less than or equal to 10. As of 3/30/2011, this produces a list of 68 companies. Looking over the list, there are at least 12 companies that look worthy of additional analysis:

Symbol

Company Name

ARO

Aeropostale, Inc.

BWLD

Buffalo Wild Wings

DISCA

Discovery Communications Inc.

DLTR

Dollar Tree, Inc.

EZPW

EZCORP, Inc.

JOSB

Jos. A. Bank Clothiers, Inc.

MA

Mastercard Incorporated

MAIL

IncrediMail Ltd. (USA)

PETS

PetMed Express, Inc.

SNAK

Inventure Foods, Inc.

SWHC

Smith + Wesson Holding Corporation

V

Visa Inc.

Aeropostale (NYSE:ARO) is a teen clothing retailer that has experienced substantial revenue growth. Their 5-year EPS growth rate is 30%, well above our 20% minimum. Nevertheless, its EV/EBITDA ratio is a paltry 3.8x, low even for the teen retail industry that has been trading at relatively low multiples, lately. While the 2011 consensus analyst estimates project an EPS shrinkage in 2011, Yahoo Finance reports that the estimates for 2012 expect the company to resume its growth trajectory. In addition, it appears like the estimates are for margin compression rather than revenue shrinkage. A prior Seeking Alpha article from 3/29/2011 was pretty positive, with a price estimate well above the current price. In my opinion, this one is worth watching.

Buffalo Wild Wings (NASDAQ:BWLD) is a restaurant chain that has growth substantially (from $422M in 2008 to $613M in 2010) even as the sector, overall, has been somewhat challenged. In addition, their 5-year EPS growth rate is an impressive 33%. However, the company is trading at an EV/EBITDA ratio of 9.9x, barely missing our screen cut-off of 10. Analysts are predicting substantial EPS growth in 2011 and Yahoo Finance reports a substantial EPS growth estimate for 2012 over 2011. This is a successful growth company trading at a growth valuation. Fair, but not my cup of tea.

Discovery Communications (NASDAQ:DISCA) is a media company that runs over 100 cable networks, internationally, (Discovery Channel, TLC, etc.). I am a fan of the company since they set up their headquarters in my home town of Silver Spring, MD and was surprised that they made the valuation cut for this screen (by quite a margin) with an EV/EBITDA ratio of 6.2x. Their YoY revenue growth rate is over 9%. They are a high-margin company and the EV/Revenue is 3.6x, a bit high for my taste. It also appears that the company has an abnormally high tax rate, with over 40% of 2008 and 2009 Income Before Tax going to income tax expense, according to Yahoo Finance. This is below the EBITDA line but contributes to their high P/E ratio. Like Buffalo Wild Wings, it is a growth company at a growth valuation in my opinion and is not necessarily my type of bet.

Dollar Tree (NASDAQ:DLTR) is a discount store chain that has benefited from the increase in thriftiness that came out of the last recession. With a 12.4% YoY revenue growth rate, an EV/EBITDA ratio of 8.2 and an EV/Revenue ratio of 1.1, this easily meets our screener criteria. Their projected growth is substantial with >14% revenue growth projected for both this year and next year, according to Yahoo Finance. From a macro perspective, the question is whether people will return to their old spending habits as the economy improves or whether the thriftiness trend will continue. I think the company is worth tracking at its current valuation levels.

EZCorp (NASDAQ:EZPW) operates pawn shops and also provides "payday"-style loans. It is a company that I am still kicking myself for not buying several years ago, when it was trading at more of a "value" valuation despite its track record of growth. Now, it has an EV/EBITDA ratio of 9.8x and an EV/Revenue ratio of 2.0x. With a five year EPS growth rate of 40%, it has earned that valuation. However, I am content to continue kicking myself as I generally do not pay that large a premium, even when there is a strong track record of growth.

Jos. A. Bank Clothiers (NASDAQ:JOSB) is a men's clothing store. They are trading at an EV/EBITDA ratio of 7.5x and an EV/Revenue ratio of 1.4x. With a 5-year EPS growth rate of 22.8% and 10.7% YoY revenue growth, it has a pretty impressive track record. The company also has a very strong balance sheet with $98.5M of cash and equivalents, no debt, and a high current ratio. I think this is a company to watch.

MasterCard Incorporated (NYSE:MA) and Visa (NYSE:V) are both returned by this screen, as consumers and businesses increasingly use credit cards to make payments, in lieu of cash or checks. These companies are trading at very similar valuations relative to their EBITDA; Mastercard with an EV/EBITDA ratio of 9.3x and Visa with an EV/EBITDA ratio of 9.5x. However, Mastercard has an EV/Revenue ratio of 4.9x while Visa's is 5.7x, implying a significant difference in margins between the two iconic credit card brands. I believe some of that is due to improved economies of scale that Visa is able to realize, having $8.1B of annual revenue in the most recent period vs. $5.5B for Mastercard. Interestingly, Visa managed a YoY revenue growth rate of 16.7% while Mastercard's was only 8.6%, implying that Visa is gaining market share. I think making a good choice here would require substantial research into the state of the credit card processing market and picking the company most likely to be the long-term winner.

IncrediMail Ltd. (MAIL) is an advertising supported software company that generates the bulk of its revenue from Google and trades at a discount given its heavy reliance on a single customer. It is trading at an EV/EBITDA ratio of 3.2x and a EV/Revenue ratio of 1.3x. Its YoY revenue growth rate is 8.5% and its 5-year EPS growth rate is 40%. Despite its strong operating history, very attractive valuation metrics, and recent renewal with Google, I am inclined to pass given the heavy reliance on Google and the likelihood of a substantial performance hit if the company were forced to use MSN/Bing/Yahoo sponsored listings in lieu of Google and the remote possibility of being forced to turn to even less attractive sources of search engine ads if MSN/Bing/Yahoo were to pass on the opportunity. Also, with the movement from desktop software to SaaS, tablets, and mobile devices, I am worried that advertising-supported installable desktop application vendors targeting consumers will be left behind in the long run.

PetMed Express (NASDAQ:PETS) is a pet pharmacy with an EV/EBITDA ratio of 7.3x and an EV/Revenue ratio of 1.2x. Its 5-year EPS growth rate of 27.8% and YoY revenue growth rate of 8.6% are impressive, especially given its relatively attractive valuation. Looking at the consensus analyst estimates suggests a flattened revenue and earnings trajectory for the company over the next two years. With that in mind, I do not think the company can still qualify as a "growth" company for the purposes of this article. To enhance our screen, we could add a condition to Screener.co that requires this year's consensus revenue and EPS estimates to be higher that last year's. That is a change we will likely make when we re-run this screen in the future.

Inventure Foods (NASDAQ:SNAK) is a snack foods manufacturer with an 8.0x EV/EBITDA ratio and a 0.9x EV/Revenue ratio. The company reported 10.7% YoY revenue growth and has a whopping 77% 5-year EPS growth rate. However, that is off a very small base. In fact, the company's entire market cap is below $70M. Analysts are projecting substantial growth in 2011 and 2012 and the valuation metrics look attractive. This is probably one to watch.

Smith & Wesson (NASDAQ:SWHC) is a firearms manufacturer that also has a perimeter security division. They are trading at an EV/EBITDA ratio of 4.6x and an EV/Revenue ratio of 0.67x. They reported 21% YoY revenue growth and have a 30% 5-year EPS growth rate. The last couple quarters were brutal for the company, with losses reported in both of them. Even on an operating cash-flow basis, the company had negative operating cash flow in the most recent quarter. There was a boom in firearms sales (no pun intended) in 2008 and 2009 and I wonder whether sales of personal defense solutions and firearms will continue to be strong in the absence of economic, political, or other panic. The consensus analyst estimate for 2011 represents substantial EPS contraction, according to Yahoo Finance. This is another company that would be excluded by the proposed modification to the original screen.

Source: 12 Companies With Consistent Revenue Growth Trading at Reasonable Valuations