5 Companies with Revenue CAGR above 20% for the Past 3 Years

An individual company’s compound Annual Growth Rate (“CAGR”) for the company’s revenue highlights the growth in turnover for the company across a specific period of time.

The formula to derive the Revenue CAGR is as follow:

(Current year's value / Value X years ago) ^ (1/X) - 1

The growth in revenue is important because it suggests whether the demand for a company's products or services will be sustainable or increasing in the future.

With a revenue CAGR below 5%, it might indicate that the company is in a mature stage of development and there might be lesser room for growth in the long run.

With a revenue CAGR of 20% and above, it shows that either the company is still in the early stage of development or they might be actively engaging in merger & acquisition to pursue high topline growth.

Hence, here are 5 such companies:

• BRC Asia Limited (SGX: BEC)

• Bukit Sembawang Estate Limited (SGX: B61)

• Halcyon Agri Corporation Limited (SGX: 5VJ)

• Moya Holdings Asia Limited (SGX: 5WE)

• Singapore Medical Group Limited (SGX: 5OT)

Note: CAGR calculations are based on the Full Year financial results announcements over the past few years.

1) BRC Asia Limited (SGX: BEC)

Incorporated in 1983, BRC Asia Limited (“BRC Asia”) is a leading Pan-Asia prefabricated reinforced steel solutions provider headquartered in Singapore and listed on the Singapore Stock Exchange.

BRC offers a full suite of reinforcing steel products and services that include standard length rebar, cut and bend services, prefabrication services as well as standard and customised welded wire mesh for the building and construction industry.

For the past 3 financial years, BRC Asia’s revenue CAGR stands at 25.26%. The strong topline growth can be contributed from the acquisition of Lee Metal Group Pte. Ltd. (“Lee Metal”) in July 2018. The increase in steel trading and distribution activities also helped to boost the growth in its top line.

BRC Asia’s share price is last traded at S$1.59, with a market capitalization of S$386.90 million.

2) Bukit Sembawang Estate Limited (SGX: B61)

Bukit Sembawang Estates Limited (“Bukit Sembawang”) started developing landed properties in the 1950s and was incorporated in Singapore in 1967. It is one of the pioneer companies that obtained a public listing on SGX Mainboard in 1968. The company focuses on property development, investment and other property-related activities.

For the past 3 financial years, Bukit Sembawang’s revenue CAGR stands at 37.12%. The growth in revenue can be seen from the various development project such as:

• 8 St Thomas

• Nim Collection Phase 1 and 2

• Watercove

• Luxus Hills Phases 8 and 9

Bukit Sembawang’s share price is last traded at S$4.19, with a market capitalization of S$1.08 billion.

3) Halcyon Agri Corporation Limited (SGX: 5VJ)

Halcyon Agri Corporation Limited (“Halcyon Agri”) is a leading supply chain franchise of natural rubber with a production capacity of 1.63 million metric tonnes per annum. The Group owns 38 processing factories in most major rubber producing origins and produces sustainable natural rubber under the audited HEVEAPRO brand. The Group distributes a range of natural rubber grades, latex and specialised rubber for the tyre and non-tyre industries.

For the past 3 financial years, Halcyon Agri’s revenue CAGR came in at 24.07%. The growth in its topline can be seen from the acquisition of GMG Group and SINRIO Group. Moreover, the increase in average selling price and sales volume of natural rubber also helped to boost its revenue growth across the years.

Halcyon Agri’s share price is last traded at S$0.315, with a market capitalization of S$502.43 million.

4) Moya Holdings Asia Limited (SGX: 5WE)

Moya Holdings Asia Limited (“Moya Asia”) is a Singapore-based investment holding company. The Company is engaged in the investment and development of total water solutions. The Company operates through Build-Operate-Transfer (“BOT”) business segment.

The Company's BOT segment is engaged in the business of providing water treatment solutions to municipalities and government, including commissioning, operation and maintenance of a range of water treatment plants on design, build, operate and transfer arrangements.

For the past 3 financial years, Moya Asia’s revenue CAGR came in at 120.00%. The exceptional growth rate can be seen from the acquisition of Acuatico Group, which is in the business of developing and operating water treatment facilities and associated distribution pipelines for the distribution of clean water.

Moreover, the revenue contribution from the various BOT projects such as Tangerang and Bekasi BOT Projects also helps to boost the topline growth for Moya Asia.

Moya Asia’s share price is last traded at S$0.074, with a market capitalization of S$311.06 million.

5) Singapore Medical Group Limited (SGX: 5OT)

Incorporated in 2005 and listed on the Singapore Exchange Securities Trading Limited (SGX) since 2009, Singapore Medical Group (“SingMedical”) is a private specialist healthcare provider with a comprehensive range of multidisciplinary specialities and an extensive network of Specialist and Associate doctors situated across clinics in Singapore.

For the past 3 financial years, SingMedical’s revenue CAGR came in at 31.56%. The double-digit growth in revenue was due to the mixture of organic growth and inorganic growth such as the acquisition of:

• Pheniks Pte. Ltd. owns SW1 Clinic, Singapore’s largest aesthetic, plastic surgery and medical spa establishment.

• The Astra Women’s Specialist group.

• The Children’s Clinic and Kids Clinic.

• The Babies and Children Specialist Clinic.

SingMedical’s share price is last traded at S$0.41, with a market capitalization of S$197.87 million.

Conclusion

To summarize, a company’s revenue CAGR differs widely by each individual industry and company size. Revenue growth of between 5-10% is usually considered good for large-cap companies, while mid-cap and small-cap companies should tend to grow their revenue by over 10% due to their low base.

Lastly, it is important to distinguish between organic revenue growth and acquisitive growth, as the former is more sustainable.

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