In our last Number Cruncher, we discussed how Dollarama (DOL:TSX), BRP Inc (DOO:TSX), Constellation Software (CSU:TSX) create massive value for its shareholders. Given that the economic value added (EVA) model is used to analyze the value created by companies, it is unsurprising that these companies receive fantastic SP scores as they generate significant value for their shareholders.
DOL has an SP score of 72, up by one in the past 90 days. This is derived by using the Performance score of 82.9 and the Risk score of 32.4. DOL has been able to maintain an exceptional average 5Y growth of its earnings per share and 5Y growth of its annual sales at 12.6% and 8.9%, respectively. Although DOL has a high quality factor exposure of 76, its value score is only 40, indicating that the company may be richly valued.
Dollarama’s performance was lackluster at the start of the pandemic until July 2021, and there is a possibility that they faced supply chain issues in China. However, since July 2021, their EVA has increased by approximately 50%, potentially due to high inflation that is driving customers to their store to save money.
DOO has an SP score of 78, up by three in the past 90 days. This is derived by using the Performance score of 88.1 and the Risk score of 24.6. The company has a marvelous average 5Y annual sales growth of 17.5% and a 1Y growth of 30.8% along a robust score of 76 for both its Growth and Quality components.
DOO demonstrates its strength in the manufacturing sector by outperforming its competitors by a considerable margin in terms of balancing performance and risk.
CSU has an SP score of 75, down by one in the past 90 days. This is derived by using the Performance score of 77.7 and the Risk score of 26.2. In addition, the stock has a favorable value growth score of 70, and quality score of 85. In addition, it has a robust track record in the last 5Y regarding its annual sales growth average of 20.5%. Constellation performed
It is expected that CSU will continue its upward trajectory, given its impressive growth, and quality scores.
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