I think there are some great S&P/ASX 200 Index (ASX: XJO) growth shares that are worth buying for your portfolio.
There aren't many shares in the ASX 20 that display good growth potentials, though I did choose one for this article.
Here are three good ASX 200 growth shares worth buying today:
Magellan Financial Group Ltd (ASX: MFG)
Magellan is one of the best fund managers in Australia in my opinion. It is good at producing solid investment returns. The underlying business also has very good management that are always looking for further opportunities to grow the business.
Over the past decade it has grown its funds under management (FUM) to more than $100 billion thanks to the good investment performance as well as a good inflow of funds.
Magellan had a strong FY20 result. Revenue increased by 12.4% and adjusted net profit after tax (NPAT) grew by 20.3%.
As the ASX 200 growth share continues to grow its FUM, its profit can continue to rise at a pleasing rate.
The move to combine three of its funds into one seems like a smart move, locking in more funds while giving investors the chance to buy more closed-ended fund units. This should be good for long-term profit.
I also like the recent move to invest in new investment bank Barrenjoey, which is getting a lot of quality people on board which should be attractive to prospective clients.
At the current Magellan share price it's trading at 20x FY23's estimated earnings. Magellan currently offers a grossed-up dividend yield of 4.8%.
Service Stream Limited (ASX: SSM)
Service Stream describes itself as a leading essential network services company. It is involved with the design, build and maintenance of various networks including water, gas, electricity, renewable energy and telecommunications.
Indeed, today it announced another win from the NBN which could be worth many millions of dollars.
The ASX 200 growth share delivered a solid FY20 result, with earnings before interest, tax, depreciation and amortisation (EBITDA) from operations rising by 15.9%.
Infrastructure spending will help Australia's recovery from COVID-19 impacts, and Service Stream could be one of the better ways to play that theme.
At the current Service Stream share price it's trading at under 15x FY22's estimated earnings. It also offers a grossed-up dividend yield of around 6%.
CSL Limited (ASX: CSL)
CSL has been one of the best ASX 200 growth shares over the past decade. The CSL share price has gone from around $33 to today's $300.
The company keeps delivering strong long-term profit growth. In FY20 it grew its net profit after tax by 17% to US$2.1 billion in constant currency terms, with revenue rising by 9%.
CSL is going to be a key part of Australia's ability to recover from COVID-19 because it has been tasked by the Australian government to manufacture both the Oxford vaccine as well as the University of Queensland vaccine.
In FY21 CSL is expecting profit to grow by up to 8% to US$2.265 billion, though the bottom end of the guidance range was US$2.1 billion of net profit – this would mean profit would be flat for the year.
The ASX 200 growth share consistently invests into new products and this helps unlock future earnings streams for the healthcare giant. It's this investment in new products that makes me confident for CSL's future profit growth. It is currently spending around 10% of its revenue on research & development.
At the current CSL share price it's trading at 34x FY23's estimated earnings.
Foolish takeaway
I believe that each of these ASX 200 growth shares have good growth credentials over the next three to five years. Growing dividends could also be good.
Out of the three options I'd probably go for Magellan because of its diversifying earnings and its rising profit margins. Fund managers are very scalable businesses.
