One of the more well-known long-term investment strategies in the securities market is investing in growth companies., whose performance exceeds the market average.
A growing company is a business, demonstrating?? improvement of main characteristics over time.
To find this issuer, not enough to look at the financial statements: an increase in revenue and income over several years may be the result of suitable market conditions (increase in prices for the main product or service, currency depreciation).
There may also be a rebound effect., when unfavorable price conditions on the market prevent you from finding a company on time, whose business is rapidly growing in size, occupying a huge share of its market, capturing free space or displacing rivals.
Financier, who wants to find a history of growth, should look into the operating reports of the issuer.
The article contains 5 Russian public companies, whose main operating characteristics have shown growth over 5 years - from 2016 on 2020 G. With all this 2020 the year spoiled statistics for almost all oil and gas companies, petrochemical, energy, Transport, Engineering, metallurgical and other economic sectors, due to a drop in business activity due to a large-scale epidemic of SARS-CoV-2 and the introduction of restrictions.
PAO "FosAgro"
PhosAgro is one of the five global leaders in the production of phosphorus-containing fertilizers and is one of the largest participants in the euro market. IN 2020 G. in the face of increasing purchasing power from the agricultural sector, the company implemented the highest volumes of fertilizers and received the highest revenue in its history. This became possible thanks to the efficient work of the management and a large-scale investment program., Allowed?? once a year to increase production volumes and vertical integration of the business. IN 2020 G. was produced 10 million tons of fertilizers.
Rice. 1. A source: operating data of PhosAgro PJSC Rice. 1. A source: operational data of PhosAgro PJSC
Rice. 2. A source: operating data of PhosAgro PJSC Rice. 2. A source: operational data of PhosAgro PJSC
PJSC "Detsky Mir"
One of the largest Russian retail chains, which sells baby products, increased the number of retail stores and clean turnover even in the context of the coronavirus epidemic and severe restrictions, introduced in the first half 2020 G.
In the end 2020 G. the company kept under control 868 stores in the Russian Federation and the states of the former Soviet Union, out of which 832 fell on the retail network "Children's World". Organized Revenue Reaches Record. Online implementations played an important role, which doubled,2 Times.
Rice. 3. A source: operational data of PJSC "Detsky Mir" Rice. 3. A source: operational data of PJSC "Detsky Mir"
Rice. 4. A source: operational data of PJSC "Detsky Mir" Rice. 4. A source: operational data of PJSC "Detsky Mir"
Rice. 5. A source: operational data of PJSC "Detsky Mir" Rice. 5. A source: operational data of PJSC "Detsky Mir"
PAO "M.Video"
IN 2019 G. M.Video-Eldorado Group has completed the merger of 2 large retail chains, who sell household and electrical appliances. "M.Video» was the leader, Eldorado is the third participant in the Russian market. After buying a rival, the group's management decided to keep both brands., but on a single legal and technical basis.
The company showed an increase in operating performance in 2020 G., when the work of retail non-grocery chains was limited due to the unfavorable epidemiological situation. The company switched to a hybrid model in time, integrating online and offline business segments on a single platform, which made it possible to maintain sales even in times of crisis and external restrictions.
Rice. 6. A source: operating data of PJSC "M.Video" Fig.. 6. A source: operational data of PJSC "M.Video"
Rice. 7. A source: operating data of PJSC "M.Video" Fig.. 7. A source: operational data of PJSC "M.Video"
Rice. 8. A source: operating data of PJSC "M.Video" Fig.. 8. A source: operational data of PJSC "M.Video"
PAO "Cherkizovo"
The largest meat producer in Russia showed an increase in production and sales in 2020 G., despite the crisis and the temporary closure of catering establishments, who are major consumers of meat products. This was facilitated by active investment activities., as well as entering the export markets of China and the Middle East.
Rice. 9. A source: operating data of PJSC "Cherkizovo" Rice. 9. A source: operational data of PJSC "Cherkizovo"
Rice. 10. A source: operating data of PJSC "Cherkizovo" Rice. 10. A source: operational data of PJSC "Cherkizovo"
PAO Beluga Group
PJSC Beluga Group is the largest producer of strong alcohol in Russia. The company demonstrates the growth of production indicators for five years. The crisis did not stop (and even helped) companies to improve their operating results.
Beluga Group produces alcoholic beverages and distributes well-known foreign brands, develops its own specialized retail network "VinLab", which numbered 640 stores in 2020 G.
Rice. 11. A source: operating data of PJSC "Beluga Group" Rice. 11. A source: operational data of PJSC "Beluga Group"
Rice. 13. A source: financial data of PJSC "Beluga Group" Rice. 13. A source: financial data of PJSC "Beluga Group"
Exceptions to the rules
An increase in production results does not always lead to an increase in financial indicators and market quotations of the issuer's shares. If the business does not control costs, then an increase in production and sales can reduce, and not increase the company's profits. The opposite situation also happens.: production figures are decreasing every year. Thanks to the successful work of management to optimize business processes and exits from low-profit assets, profit, due to shareholders, Grows.
For example, energy holding PJSC "OGK-2", which has been reducing the volume of useful electricity supply for five years, but his net income is growing at the same time.
Rice. 14. A source: operating data of PJSC "OGK-2" Rice. 14. A source: operational data of PJSC "OGK-2"
Rice. 15. A source: financial data of PJSC "OGK-2" Rice. 15. A source: financial data of PJSC "OGK-2"
