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Looking to add some growth to your portfolio? Here are some ideas on how to start your own search for high-growth names.

We began by screening for high-growth stocks, with 5-year projected EPS growth rates above 15%. We then screened these names for those that appear undervalued relative to free cash flow, with P/FCF below 15. 15 is a "fair value" level for most companies, so those with smaller ratios may be undervalued.

Finally, we screened for those stocks with strong sources of profitability, indicated by DuPont analysis. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components:

ROE

= (Net Profit/Equity)

= (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)

= (Net Profit margin)*(Asset turnover)*(Leverage ratio)

Because increases in net margin and asset turnover are considered good things, DuPont focuses on companies with these positive characteristics: Increasing ROE along with,

  • Decreasing leverage, (i.e. decreasing Asset/Equity ratio)
  • Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio)

Those companies that pass DuPont are seeing positive trends in the sources of their increasing profitability, which adds further weight to the argument that the names are profitable.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Given their profitability, do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by P/FCF, which may indicate how undervalued a stock is relative to its free cash flow.

1. 1-800-Flowers.com Inc. (NASDAQ:FLWS): Operates as a gift retailer in the United States. Market cap at $186.75M. Price at $2.92. 5-year projected EPS growth at 16.00%. P/FCF at 6.7. MRQ net profit margin at 6.94% vs. 5.91% y/y. MRQ sales/assets at 0.852 vs. 0.845 y/y. MRQ assets/equity at 1.77 vs. 1.897 y/y.

2. Moneygram International Inc. (NASDAQ:MGI): Provides payment services worldwide. Market cap at $965.35M. Price at $16.67. 5-year projected EPS growth at 20.05%. P/FCF at 6.71. MRQ net profit margin at 4.92% vs. 3.41% y/y. MRQ sales/assets at 0.064 vs. 0.056 y/y. MRQ assets/equity at -46.231 vs. 145.534 y/y.

3. Saks Incorporated (NYSE:SKS): Operates fashion retail stores in the United States. Market cap at $1.72B. Price at $10.71. 5-year projected EPS growth at 15.53%. P/FCF at 9.01. MRQ net profit margin at 4.% vs. 2.88% y/y. MRQ sales/assets at 0.435 vs. 0.404 y/y. MRQ assets/equity at 1.764 vs. 1.842 y/y.

4. Nacco Industries Inc. (NYSE:NC): Engages in lift trucks, small appliances, specialty retail, and mining businesses primarily in the Americas, Europe, and the Asia-Pacific. Market cap at $959.82M. Price at $115.40. 5-year projected EPS growth at 21.70%. P/FCF at 9.53. MRQ net profit margin at 5.72% vs. 4.43% y/y. MRQ sales/assets at 0.528 vs. 0.522 y/y. MRQ assets/equity at 3.126 vs. 3.707 y/y.

5. Dice Holdings, Inc. (NYSE:DHX): Provides online recruiting and career development services. Market cap at $606.48M. Price at $9.46. 5-year projected EPS growth at 19.68%. P/FCF at 10.69. MRQ net profit margin at 22.09% vs. 15.15% y/y. MRQ sales/assets at 0.145 vs. 0.119 y/y. MRQ assets/equity at 1.56 vs. 1.788 y/y.

6. Integramed America Inc. (NASDAQ:INMD): A specialty healthcare services company, manages outpatient centers offering products and services to patients and providers in the fertility and vein care segments of the health industry in the United States. Market cap at $158.74M. Price at $13.23. 5-year projected EPS growth at 22.50%. P/FCF at 11.5. MRQ net profit margin at 2.61% vs. 1.39% y/y. MRQ sales/assets at 0.45 vs. 0.429 y/y. MRQ assets/equity at 1.759 vs. 1.78 y/y.

7. TriMas Corporation (NASDAQ:TRS): Designs, manufacturers, and distributes various products for commercial, industrial, and consumer markets worldwide. Market cap at $817.94M. Price at $23.26. 5-year projected EPS growth at 22.33%. P/FCF at 12.94. MRQ net profit margin at 5.1% vs. 2.68% y/y. MRQ sales/assets at 0.263 vs. 0.23 y/y. MRQ assets/equity at 5.677 vs. 8.242 y/y.

8. Verint Systems Inc. (NASDAQ:VRNT): Provides actionable intelligence solutions and value-added services worldwide. Market cap at $1.21B. Price at $30.71. 5-year projected EPS growth at 21.67%. P/FCF at 13.4. MRQ net profit margin at 8.1% vs. 7.03% y/y. MRQ sales/assets at 0.141 vs. 0.136 y/y. MRQ assets/equity at 3.52 vs. 3.802 y/y.

9. Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL): Operates, franchises, and licenses bagel specialty restaurants in the United States. Market cap at $238.85M. Price at $14.05. 5-year projected EPS growth at 18.25%. P/FCF at 14.32. MRQ net profit margin at 5.32% vs. 3.16% y/y. MRQ sales/assets at 0.562 vs. 0.517 y/y. MRQ assets/equity at 2.332 vs. 2.65 y/y.

10. Apple Inc. (NASDAQ:AAPL): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $547.71B. Price at $572.83. 5-year projected EPS growth at 19.39%. P/FCF at 14.53. MRQ net profit margin at 28.2% vs. 22.45% y/y. MRQ sales/assets at 0.334 vs. 0.308 y/y. MRQ assets/equity at 1.54 vs. 1.587 y/y.

11. Shuffle Master Inc. (NASDAQ:SHFL): Develops, manufactures, and markets technology and entertainment-based products for the gaming industry worldwide. Market cap at $920.96M. Price at $16.90. 5-year projected EPS growth at 25.00%. P/FCF at 14.69. MRQ net profit margin at 13.65% vs. 10.96% y/y. MRQ sales/assets at 0.178 vs. 0.139 y/y. MRQ assets/equity at 1.318 vs. 1.62 y/y.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 11 Undervalued High-Growth Stocks With Strong Sources Of Profitability