Guru Stocks With Steady Returns: NetEase, Monster Beverage

Stocks with high profitability and strong returns

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May 04, 2016
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According to GuruFocus' All-in-One Screener, the following stocks have had strong performance over the last 10 years with high and steady returns as well as profitability. EPS has also grown steadily with the company’s revenue. Most of these companies have a great cash-to-debt ratio.

NetEase Inc. (NTES)

The company during the last 10 years has had an average ROE of 27.47% and an average ROA of 23.29%; the average profitability has been 46.77% for its operating margin and 46.37% for its net margin. EPS also had a strong performance, reporting a 10-year growth rate of 33%, supported by revenue that has grown by 41%.

The last reported ROE is 31.51%, while ROA is 23.22%. Financial strength is rated by GuruFocus as 9/10 with a cash to debt of 4.88 that is below the industry median of 14.39.

It operates an interactive online community in China and is a provider of Chinese language content and services through its online games, internet portal, e-mail and wireless value-added services businesses. It has also developed an online casual game platform with various multi-player games.

The main guru shareholders are Jim Simons (Trades, Portfolio) who holds 1.52% of outstanding shares, Sarah Ketterer (Trades, Portfolio) with 0.2%, Matthews China Fund (Trades, Portfolio) with 0.09%, Pioneer Investments (Trades, Portfolio) with 0.03% and Columbia Wanger (Trades, Portfolio) with 0.01%.

IPG Photonics Corp. (IPGP)

The company during the last 10 years has had an average ROE of 19.57% and an average ROA of 16.36%; the average profitability has been 30.27% for its operating margin and 22.23% for its net margin. EPS had a 10-year growth rate of 32%, supported by revenue that has grown by 19%.

The last reported ROE is 19.31%, while ROA is 16.73%. Financial strength is rated by GuruFocus as 9/10 with cash to debt of 38.61 that is above industry median of 0.64.

The company is the developer and manufacturer of a broad line of high-performance fiber lasers, fiber amplifiers and diode lasers that are used in materials processing.

Columbia Wanger (Trades, Portfolio), which holds 2.36% of outstanding shares of the company, is the main guru shareholder followed by Joel Greenblatt (Trades, Portfolio) with 0.7%, Chuck Royce (Trades, Portfolio) with 0.68%, Pioneer Investments (Trades, Portfolio) with 0.65% and Jim Simons (Trades, Portfolio) with 0.44%.

Monster Beverage Corp. (MNST)

The company during the last 10 years has had an average ROE of 41.13% and an average ROA of 27.88%. The average profitability has been 26.70% for its operating margin and 16.51% for its net margin. EPS had a 10-year growth rate of 31%, supported by revenue that has grown by 28%.

The last reported ROE is 27.32%, while ROA is 15.53%. Financial strength is rated by GuruFocus as 6/10 with a cash to debt of 3.84 that is above the industry median of 0.75.

The company markets and distributes energy drinks. It was incorporated in Delaware on April 25, 1990 and formerly known as Hansen Natural Corporation.

Spiros Segalas (Trades, Portfolio), who holds 0.86% of outstanding shares of the company, is the main guru shareholder followed by Caxton Associates (Trades, Portfolio) with 0.31%, Jim Simons (Trades, Portfolio) with 0.22%, Louis Moore Bacon (Trades, Portfolio) with 0.05%, Pioneer Investments (Trades, Portfolio) with 0.03% and Jeff Auxier (Trades, Portfolio) with 0.01%.

Chipotle Mexican Grill Inc. (CMG)

The company during the last 10 years has had an average ROE of 23.07% and an average ROA of 17.03%; the average profitability has been 15.57% for its operating margin and 9.61% for its net margin. EPS had a 10-year growth rate of 31%, supported by revenue that has grown by 21%.

The last reported ROE is 15.61%, while ROA is 12.25%. Financial strength is rated by GuruFocus as 7/10 with no debt.

The company operates Chipotle Mexican Grill restaurants, which serves a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads, made using fresh ingredients.

The main guru shareholders are Frank Sands (Trades, Portfolio) who holds 5.34% of outstanding shares, Andreas Halvorsen (Trades, Portfolio) with 2.36%, Jeremy Grantham (Trades, Portfolio) with 1.66%, Jim Simons (Trades, Portfolio) with 1.05%, Steven Cohen (Trades, Portfolio) with 0.09%, Stanley Druckenmiller (Trades, Portfolio) with 0.07% and Joel Greenblatt (Trades, Portfolio) with 0.06%.

51job Inc. (JOBS)

The company during the last 10 years has had an average ROE of 14.33% and an average ROA of 9.87%; the average profitability has been 27% for its operating margin and 23.45% for its net margin. EPS had a 10-year growth rate of 30%, supported by revenue that has grown by 15%.

The last reported ROE is 16.11%, while ROA is 10.28%. Financial strength is rated by GuruFocus as 7/10 with cash to debt of 4.47 that is above the industry median of 2.51.

The company provides integrated human resource services in China.Â

Columbia Wanger (Trades, Portfolio), who holds 0.94% of outstanding shares of the company, is the main guru shareholder.

Ebix Inc. (EBIX)

The company during the last 10 years has had an average ROE of 26.70% and an average ROA of 16.05%; the average profitability has been 37.90% for its operating margin and 32.68% for its net margin. EPS had a 10-year growth rate of 29%, supported by revenue that has grown by 25%.

The last reported ROE is 19.06%. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 0.28 that is below the industry median of 13.14.

The company is an international supplier of software and e-commerce solutions to the insurance industry.

The main guru shareholders are Chuck Royce (Trades, Portfolio) with 0.49% of outstanding shares, Jim Simons (Trades, Portfolio) with 0.11%, John Hussman (Trades, Portfolio) with 0.08% and Paul Tudor Jones (Trades, Portfolio) with 0.07%.