Stock Screen: Cherry-Picking the World's Best Companies
To arrive at its list of Global Champions 2009, global consulting firm A.T. Kearney culled from the 2,500 largest companies that operate internationally. In the firm's second annual ranking of the global elite, A. T. Kearney again measured five-year sales growth, as well as "value creation"—the rise in company's market capitalization less any increase in its capital.
BusinessWeek ran a screen on the 40 companies at the top of A.T. Kearney's ranking. (The consultancy expanded its annual list from 25 companies for BusinessWeek.) We screened for growth measures and a valuation measure. On the growth front, we calculated the median one-year and five-year earnings-per-share growth for the group (as of 2009's second quarter) and eliminated those that didn't fall in the top half.
Then, we looked at the current price-to-earnings ratio for the MSCI World index— 26—and only kept companies with p-e ratios below that number.
The result: Ten companies based in countries ranging from South Africa to Mexico, and operating in industries as far afield as engineering and apparel.
|Company||Ticker||Country||Industry||Price-Earnings Ratio*||5-Year EPS Growth**||1-Year EPS Growth**|
|Bilfinger Berger||GBFG.HA||Germany||Engineering & Contracting||7||237%||808%|
|World Fuel Services||INT||U.S.||Oil & Gas Services||11||548%||31%|
|Saipem||SPMI.MI||Italy||Engineering & Contracting||11||339%||5%|
|Fluor||FLR||U.S.||Engineering & Contracting||13||242%||61%|
|MTN Group||MTNJ.F||South Africa||Telecommunications||14||129%||22%|
|Fresenius Medical||FMS||Germany||Medical Devices & Services||18||111%||4%|
|*As of Sept. 25|
|**As of Q2 2009; calculated using currency of origin|