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4 Industrial Companies With High Returns on Equity Over Past 5 Years

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- By James Li

In light of President Biden unveiling a $2 trillion infrastructure and economic recovery package on Wednesday, four industrial companies that have high financial strength and strong returns on equity over the past five years are Booz Allen Hamilton Holding Corp. (NYSE:BAH), C.H. Robinson Worldwide Inc. (NASDAQ:CHRW), Expeditors International of Washington Inc. (NASDAQ:EXPD) and Maximus Inc. (NYSE:MMS) according to the Historical Data Screen, a Premium Plus feature within our All-in-One Screener.


U.S. market surges as investors assess Biden's infrastructure plan

The Nasdaq Composite Index and the Standard & Poor's 500 Index surged more than 0.7% on Wednesday as investors assess the federal government's infrastructure plan and its impacts.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

CNBC detailed a few key points in the infrastructure plan, which include $621 billion in transportation infrastructure and $580 billion in American manufacturing, research, development and job training.

As such, investors may find opportunities in industrial companies that have strong balance sheets and returns to equity over the past five years. GuruFocus' financial strength rank includes factors like the debt-to-equity ratio and the Altman Z-score, a measure of the chance of financial distress.

The Screener also looked for companies trading at a price-to-GF Value ratio between 0.6 and 1.1. GuruFocus' exclusive valuation method stems from Peter Lynch's "earnings line" concept and considers the following factors: historical price multiples, internal adjustments for past performance and estimates for future business growth.

Booz Allen Hamilton

Shares of Booz Allen Hamilton (NYSE:BAH) traded around $80.78, showing that the stock is fairly valued based on Wednesday's price-to-GF Value ratio of 1.01.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

GuruFocus ranks the McLean, Virginia-based management consulting service company's profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a return on equity that outperforms over 98% of global competitors and an operating margin that has increased approximately 1.1% per year on average over the past five years.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

Booz Allen Hamilton's financial strength ranks 6 out of 10 on the back of a strong Altman Z-score of 4.18 despite debt ratios underperforming over 60% of global business service companies.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

Gurus with large holdings in Booz Allen Hamilton include Pioneer Investments (Trades, Portfolio) and Jim Simons (Trades, Portfolio)' Renaissance Technologies.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

C.H. Robinson Worldwide

Shares of C.H. Robinson Worldwide (NASDAQ:CHRW) traded around $96.17, showing that the stock is fairly valued based on Wednesday's price-to-GF Value ratio of 1.04.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

GuruFocus ranks the Eden Prairie, Minnesota-based logistics company's profitability 7 out of 10 on the back of returns on equity outperforming over 96% of global competitors despite profit margins outperforming just over half of global transportation companies.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

C.H. Robinson Worldwide's financial strength ranks 6 out of 10 on the heels of a strong Altman Z-score of 7.39 and interest coverage ratios outperforming over 75% of global competitors despite a debt-to-equity ratio that lags more than half of transportation companies.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

Expeditors International of Washington

Shares of Expeditors International of Washington (NASDAQ:EXPD) traded around $108.38, showing that the stock is fairly valued based on Wednesday's price-to-GF Value ratio of 1.08.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

GuruFocus ranks the Seattle-based logistics provider's profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank and a return on equity that outperforms over 96.78% of global competitors.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

Expeditors' debt ratios outperform over 83% of global competitors, suggesting good financial strength.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

Maximus

Shares of Maximus (NYSE:MMS) traded around $89.28, showing that the stock is modestly undervalued based on Wednesday's price-to-GF Value ratio of 0.90.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

GuruFocus ranks the Reston, Virginia-based government health and human service company's profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and a return on equity that outperforms over 83% of global competitors.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

Maximus' financial strength ranks 7 out of 10, driven by a high Altman Z-score of 7.29 and interest coverage and debt ratios outperforming over 70% of global competitors.

4 Industrial Companies With High Returns on Equity Over Past 5 Years
4 Industrial Companies With High Returns on Equity Over Past 5 Years

Disclosure: No positions.

Read more here:

  • 3 Undervalued-Predictable Companies With Strong 1st-Quarter Performances

  • 5 Companies Trading Below Historical Low Price-Book as of March

  • 4 Buffett-Munger Stocks With Strong Gains as of the 1st Quarter



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This article first appeared on GuruFocus.