What are we looking for?
Today we're looking for companies with at least a 10-year track record of delivering earnings growth. This sort of time horizon offers enough perspective that we should be able to look past some of the short-term issues that crop up for companies and identify the ones that are able to consistently deliver results.
So far this week, we've highlighted the most profitable companies on the S&P/TSX composite over the past three- and five-year periods. To push our time frame out a little further, we've turned to Capital IQ's historical database to gather the information we need.
More about today's screen
We're still looking for companies on the S&P/TSX composite, but we've made a couple changes to the methodology this time around. We are now using the compound annual growth rate of diluted earnings per share to determine our sort order and that data are trailing 12-month data in U.S. dollars. Income, assets, earnings before interest and tax, profit and revenue growth over the past 10 years are highlighted as well but they are also on a trailing 12-month basis.
What did we find?
Research In Motion is a standout near the top of this list, as it was when we looked at the three- and five-year data as well. Ten years ago, RIM was well on its way to establishing the BlackBerry as the must-have accessory for the business elite. What's remarkable is how successful it's been in the intervening years and moving further and further down market as it continued its voracious growth. While Shaw Communications and Open Text are testament to the fact that some tech companies were able to continue to build sound business models even in the aftermath of the tech bubble's bursting, the presence of Canadian Natural Resources, EnCana and Petro-Canada speak more to the core strengths of the Canadian economy and its potential profitability for solid operators.
Past performance is never a guarantee of future results so you still need to do your homework and dig deeper into the financial results. You can do more research at Globeinvestor.com.
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