High growth companies such as Ted Baker and SafeCharge International Group has a positive future outlook in terms of their returns, profitability and cash flows. The prospects of these companies tend to outperform others, regardless of how the stock market is generally doing. Analysing the most recent financial data, I’ve created a list of companies that compare favourably in all criteria, making them potentially good additions to your portfolio.
Ted Baker PLC (LSE:TED)
Ted Baker Plc engages in the design, wholesale, and retail of menswear, womenswear, and accessories under the Ted Baker name. Started in 1987, and headed by CEO Raymond Kelvin, the company size now stands at 3,223 people and has a market cap of GBP £1.34B, putting it in the small-cap stocks category.
An outstanding 12.98% earnings growth is forecasted for TED, driven by an underlying sales growth of 19.03% over the next few years. It appears that TED’s profitability may be sustainable as the fundamental push is top-line expansion rather than unmaintainable cost-cutting activities. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 26.79%. TED’s bullish prospects on both the top and bottom lines make it an interesting stock to invest more time to understand how it can add value to your portfolio. Thinking of investing in TED? Check out its fundamental factors here.
SafeCharge International Group Limited (AIM:SCH)
SafeCharge International Group Limited provides payments services, technologies, and risk management solutions for online and mobile businesses in Europe and internationally. Founded in 2006, and now led by CEO David Avgi, the company currently employs 344 people and with the company’s market capitalisation at GBP £446.37M, we can put it in the small-cap category.
Driven by the positive double-digit sales growth of 27.39% over the next few years, SCH is expected to deliver an excellent earnings growth of 12.98%. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 21.07%. SCH ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. A potential addition to your portfolio? Have a browse through its key fundamentals here.
Collagen Solutions plc (AIM:COS)
Collagen Solutions plc develops, manufactures, and supplies medical grade collagen components and biomaterials for use in regenerative medicines, medical devices, and in-vitro diagnostics in Europe, the Middle East, Africa, North America, and Asia. Established in 2013, and currently headed by CEO Jamal Rushdy, the company employs 41 people and with the stock’s market cap sitting at GBP £10.77M, it comes under the small-cap group.
COS is expected to deliver an extremely high earnings growth over the next couple of years of 68.90%, bolstered by an equally impressive revenue growth of 93.87%. Profit growth, coupled with top-line expansion, is a positive indication. This is because net income isn’t artificially inflated by unsustainable activities such as one-off cost-reductions expected in the future. Moreover, the 96.77% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. COS’s bullish prospects on both the top and bottom lines make it an interesting stock to invest more time to understand how it can add value to your portfolio. Should you add COS to your portfolio? Other fundamental factors you should also consider can be found here.
For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.