27 stocks with high ROIC and a decent growth

Identifying compounders for long-term returns

As we saw in a previous article here, a high ROIC is a good sign for a company. Coupled with significant growth, it can generate substantial long-term returns.

Let's explore together 27 companies that have both high ROIs (exceeding 20%) and significant growth (exceeding 9%). This is obviously not an investment advice. Moreover, various factors such as market dynamics, valuation, etc., need to be taken into consideration.

Without further ado, let’s begin!

1. Vertex Pharmaceuticals

Country: US - Sector: Healthcare

5yr average ROIC: 30.9% - Expected 22-25 CAGR: 8.7%

2. Arista Networks

Country: US - Sector: Technology / Telecom

5yr average ROIC: 25.5% - Expected 22-25 CAGR: 11.3%

3. Mastercard

Country: US - Sector: Financials

5yr average ROIC: 49.1% - Expected 22-25 CAGR: 12.6%

4. Manhattan Associates

Country: US - Sector: Technology

5yr average ROIC: 52.3% - Expected 22-25 CAGR: 13.7%

5. ASML

Country: Netherlands- Sector: Industrials / Technology

5yr average ROIC: 29.9% - Expected 22-25 CAGR: 16.1%

6. Adyen

Country: Netherlands - Sector: Financials

5yr average ROIC: 26.0% - Expected 22-25 CAGR: 22.6%

7. Fortinet

Country: US - Sector: Technology

5yr average ROIC: 39.9% - Expected 22-25 CAGR: 16.2%

8. Evolution

Country: Sweden - Sector: Consumer discretionary

5yr average ROIC: 40.5% - Expected 22-25 CAGR: 19.3%