In last week’s Number Cruncher written for the Globe and Mail, we looked at high quality industrial names whose short-term operational returns continue to improve. The first company that came up on our screen was Westshore Terminals Investment (WTE).
The above chart shows that WTE’s EVA and Net Operating Profit have been trending upward since the first quarter of 2017, while prices remained within the $20 to $27 range. During the same period, WTE’s rising bottom-line along with decreasing number of shares contributed to diluted EPS to double as shown in the next chart:
Relative to its peers, WTE has an outstanding performance score of 72.9 with a comparably low risk score of 40.1. Its high performance score is attributable to high and increasing Return on Capital and Performance Spread. The company ranked in the 90th percentile in both metrics. Return on Capital was 20.5% as of Sep 2019 while Performance Spread, the difference between Return on Capital and Cost of Capital, amounted to 10.4% as of Sep 2019.
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