What’s something every investor wants from their companies? Growth. While we can often handle a hit to profits or have some understanding of setbacks that come and go, if a company’s growth profile is in question, so too is its future worth. These three companies look primed for growth right now in my opinion. Boral Limited (ASX: BLD) Activity is picking up in the road infrastructure space and Boral is in the position to leverage off the surge with price increases in construction materials likely to be healthy for its bottom line. The international building and construction company’s FY18 results…
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What’s something every investor wants from their companies?
While we can often handle a hit to profits or have some understanding of setbacks that come and go, if a company’s growth profile is in question, so too is its future worth.
These three companies look primed for growth right now in my opinion.
Boral Limited (ASX: BLD)
Activity is picking up in the road infrastructure space and Boral is in the position to leverage off the surge with price increases in construction materials likely to be healthy for its bottom line.
The international building and construction company’s FY18 results certainly excited the market, with a 34% uptick in revenue to $5.9 billion, a 47% rise in EBITDA to $1.1 billion and a final dividend of 14c per share franked at 50%.
But it’s Boral’s recent acquisition of US-based Headwaters that are propelling it forward.
Boral’s North America segment has seen a substantial revenue and EBITDA lift as a result of the acquisition with synergies of US$39 million – well ahead of the US$30million to US$35 million target.
With Boral’s management focused on furthering its US footprint substantial growth could be unlocked, offsetting a slow down in residential property on home soil.
Ansell Limited (ASX: ANN)
Shares in health and safety protection provider Ansell Limited plummeted off the back of its FY18 results, despite a healthy rise in NPAT – albeit bolstered by the sale of its condom business for a one-off gain of US$345 million.
Investors could be spooked by rumours of rising rubber prices globally, which did impact Ansell’s first-half of FY18, but if the performance of its industrial division in the second-half is anything to go by, the future is bright for the company and its shareholders.
While there is some concern surrounding potential tariff increases on imports from the US to China, Ansell maintains a leading position in the global personal protection sector – a sector which is growing rapidly.
Ansell is evaluating merger and acquisition opportunities to further growth, and with its disciplined approach to financials, should be well-placed to do so.
If the company continues to focus on emerging market expansion there could be plenty of room for growth in a number of untapped markets.
One to watch.
Crown Resorts Ltd (ASX: CWN)
Investors have been watching gaming and entertainment stalwart Crown Resorts Ltd closely since news broke of its intention to litigate against the NSW Government over its new casino at Barangaroo – joining forces with Lendlease Group (ASX: LLC) in a bid to protect harbour views.
The $2.2 billion Barangaroo project is due for completion in 2021 – and is a definite driver of growth for the company – irrespective of the outcome of the Supreme Court action.
Crown reported a FY18 profit of $558.8 million early in August – down 70% on FY17 – but the previous result was bolstered by the one-off sale of its Macau business and Crown’s FY18 normalised profit rose by 14%.
Crown reported increases in its VIP play at its casinos in Perth and Melbourne which is promising given its commitment to Barangaroo indicates its focus on its core casino business.
If Crown can get the balance right with this new development its results could be looking nice and healthy by FY22.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia has recommended Ansell Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.