The growth companies’ data screen filters companies that have seen their revenue grow at a fast clip over the past several years. These companies also have manged to report growth in operating metrics such as net profit without over-leveraging their balance sheet. On the operating front, these companies have reported healthy returns on equity and returns on assets.
The primary objective of this data screen is to identify companies with high growth potential across the small-cap, mid-cap, and large-cap space. This is achieved by analysing 5-year historical revenue growth of companies, which indicates the business expansion trend of a company. This metric is combined with other fundamental metrics such aslow debt-to-equity ratio, healthy return on assets, historical EBITDA growth coupled with institutional shareholdings to identify sustainable growth companies. .
This data screen of Sivastatz helps identify companies with positive price momentum showing profitable growth and a positive return on assets and can be considered as a form of growth companies’ screener to identify potential opportunities.
| Growth Companies Data Parameters |
| Key Metrics |
Description |
| Market cap |
Objective is to identify companies with high growth potential in small-cap, mid-cap, and large-cap space |
| 5Y Historical Revenue Growth |
Higher revenue growth may indicate business expansion trend of a company |
| LTM Revenue Growth |
Identifies if the business is able to expand its horizons in terms of delivering goods and/or services |
| 5Y Historical EBITDA Growth |
Illustrates the strength of business' bottom-line and its ability to distribute earnings to shareholders' or reinvest in growth |
| LTM Net Profit Growth |
Illustrates the strength of business' bottom-line and its ability to distribute earnings to shareholders' or reinvest in growth |
| LTM Returns on Equity (ROE) |
Enable investor to gauge business' profitability and ability to utilise shareholders' money |
| Institutional Shareholdings |
Typically looked by investors as a key metrics to determine institutional confidence in the company |
| LTM Debt to Equity Ratio (D/E) |
A lower debt to equity ratio signifies the company's balance sheet strength and ability to grow using shareholders' equity |
| LTM Return on Assets (ROA) |
Identify a company's asset efficiency to each dollar of generate revenue |
| Current Market Price (CMP) |
Typically, CMP is compared with simple moving averages which acts as an indicator of positive price momentum |
Frequently Asked Questions (FAQs)
Q. Which companies are growth companies?
Ans. If a company's revenues and profits grow at a faster clip than the market, then it is called a growth company. A growth company tends to have profitable reinvestment opportunities for its own retained earnings. Usually, these companies offer unique products and services and frequently own novel technologies or intellectual properties.
Q. How is a growth company different from a value company?
Ans. While growth companies are considered to have the potential to outperform the overall market growth over time because of the expected growth in demand for products and services they offer, value companies are classified as companies that are currently trading below their intrinsic value thus, are likely to provide sufficient cushion during volatile times.
Q. Does this screen show companies’ data from a particular sector?
Ans. No, this screen includes companies from across the sectors and the market capitalisation category.
Q. What do the Consensus Ratings and Consensus Mean Target Price of a company indicate?
Ans. The consensus mean target is deduced using statistical averages of broker estimates determined to be on the majority accounting basis and is provided by the licensed data provider. The price target is the projected price level forecasted by the respective analyst(s) within a specific time horizon.
The mean consensus rating is based on the data provided by the licensed data provider. The Consensus Rating is based on the Standard Scale of 1) Strong Buy, 2) Buy, 3) Hold, 4) Sell, and 5) Strong Sell.
Q. How many companies are shown on this screen?
Ans. This screen may include 10-20 companies, and the companies’ data screen is updated every week.
Disclaimer – The information, data and other resources available on this website and received from Kalkine Pty Ltd (“Kalkine”) such as e-mails or newsletters are provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner.
We strive to provide accurate and up-to-date information; however, the data contained in this website is not necessarily real-time nor accurate. Data as displayed is provided by one or more licensed sources. Kalkine does not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. You should not make any decision, financial, investments, trading or otherwise, based on any of the data presented on the website without undertaking independent due diligence and consultation with a professional broker or competent financial advisor.
Investing in the stock market involves risk, including the risk of losing your investment. Past performance is not indicative of future results. The use of the data provided on this website does not guarantee any specific outcomes or returns. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information or data provided on this website. Users are responsible for their own investment decisions and should exercise caution and due diligence.