Fortune magazine has published its 2019 ranking of the 100 fastest growing companies. The annual ranking has been a “barometer of dynamism in the economy.” As expected, the 2019 list was dominated by technology sector. Fortune pointed out that not all fast growing companies are born in the Internet era. The average age of the 100 fastest growing companies is 38 years old. Here we take a look at the top ten of them.
To compile the 33rd edition of its annual list, Fortune took into account earnings per share (EPS) growth rate, revenue growth rate, and three-year annualized stock returns. Talking about stock returns, the 100 companies listed by Fortune have delivered an average annual return of 29% in the last three years. By comparison, the S&P 500 has returned only 14.2% in the same period.
Fortune’s ranking includes only companies listed in the United States and having a market capitalization of at least $250 million. Privately-held companies don’t qualify. These are the top 10 fastest growing companies of 2019.
10- SS&C Technologies Holdings
This Windsor, Connecticut-based software company has been on Fortune’s fastest growing companies for four consecutive years. SS&C Technologies provides investment management software and services. It has managed to grow its revenue at a 44% annualized rate in the last three years. The company posted revenues of $4.13 billion in four quarters ending April 2019. Its stock price has gone up at 28% CAGR, twice the rate of the S&P 500.
9- Triton International
Headquartered in Hamilton, Bermuda, Triton International is a leading lessor of intermodal containers that are used to transport goods by rail, truck or ship. Its earnings have grown at a 98% yearly rate while the stock has turned 44% annually in the last three years. Triton International’s annual revenue is $1.5 billion. It has posted net income of $361 million in the previous four quarters.
8- Nexstar Media Group
Nexstar has jumped from 36th place in 2018 to become the 8th fastest growing company this year. It’s the second-largest television station owner in the United States, owning more than 170 stations. Nexstar’s revenues have grown at 52% annual rate in the last three years, while its stock has delivered 31% annualized return over the same period. The company’s revenue in the previous four quarters stood at $2.77 billion.
California-based Nvidia is known for its high-performance gaming processors. It makes graphics processors for smartphones, tablets, laptops, consoles, and other devices. The company has been investing heavily in artificial intelligence (AI). Nvidia’s revenue has grown at 35% while its earnings have been growing at 82% yearly rate over the last three years. The stock has returned 52% CAGR in the last three years.
6- Paycom Software
Paycom is a leading provider of online payroll services and HR software solutions. Its market value at the end of June 2019 was $13.2 billion. The stock has returned 74% annually in the last three years. Its revenues have been growing at 34% yearly.
Netflix is by far the world’s most popular media streaming provider despite witnessing a decline in the number of subscribers in the most recent quarter. Its revenues have been growing at 33% yearly while earnings per share (EPS) have been skyrocketing at 129%. The stock has returned 59% annually in the last three years. However, Netflix is going to face stiff competition from Disney Plus and Apple TV Plus services in the coming years.
4- Corcept Therapeutics
Menlo Park-based Corcept Therapeutics is a debutante on Fortune’s annual list of fastest growing companies. Its revenues have grown at 74% yearly, and the stock has returned 27% annually in the last three years. Founded in 1998, Corcept Therapeutics is engaged in drug discovery and development. It focuses on treatments for oncologic, psychiatric, and metabolic disorders.
3- Micron Technology
Micron Technology is a leading manufacturer of USB flash drives, NAND flash memory and other computer storage solutions. Its EPS has grown at 173% yearly in the last three years. Micron Technology stock has returned 41% annually between June 2016 and June 2019. The company posted net income of $13 billion on revenue of $30 billion in the four quarters ending April 2019.
2- Texas Pacific Land Trust
The Texas Pacific Land Trust is a land trust that owns more than 900,000 acres of land in Texas. The company was founded way back in 1888. It generates revenue through oil and gas royalties, land sales, and grazing and sundry leases. In more than 130 years of its existence, the land trust has sold 75% of its original landholdings, but it remains one of the largest private landowners in Texas. Its stock has returned 68% annually in the last three years.
The fastest growing company of 2019 is a Chinese mobile social network called Momo. Its EPS has grown at 193% yearly while revenues have grown at 141% in the last three years. Momo offers social search, mobile games, mobile marketing services, chatrooms, and paid emoticons in the world’s largest social network market.