I was invited to the Fairfax Financial Holdings Shareholder’s Dinner in 2017. It was there that I gave a popular talk on Canadian Capital Compounders Today – 25 Market Beating Stocks. Stantec was one of those 25 Capital Compounder Stocks. Take a look at Stantec’s key metrics below, which reinforce why it’s a “capital compounder”.
Stantec:
Company | CEO / Founder | ROIC (5 Yr) | Compound Return |
Stantec | Robert Gomes | 11.6% | 20.3% |
Stantec, along with the other 25 Canadian Capital Compounders, have all beaten the market, and share these common characteristics:
- Free cash-flow generative, high return on capital businesses;
- Run by exceptional, and shareholder-oriented, managers who;
- Effectively deploy capital, to grow their business, and continually deliver high rates of return for their shareholders
Note: Compound Annual Return is based on capital appreciation returns since inception on the Toronto Stock Exchange (S&P/TSX), up to April 10, 2017. And the Return on Capital (ROIC) 5-year average is from 2011 – 2016, sourced from Morningstar.com.
Robin Speziale is the national bestselling author of Market Masters, which is available at Chapters, Indigo, and Coles as well as Costco and Amazon.ca. He lives in Toronto, Ontario. Learn more about Market Masters.
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