Steady compounders: 3 ASX 200 shares that have delivered over a decade

There are a select few S&P/ASX 200 Index (ASX: XJO) shares that have delivered strong returns over the long term. This has come through in the underlying profit and earnings per share (EPS).

It is often said that share prices follow profit. If a business can grow its core profit over the long term, then this can be a real boost for investor sentiment about the business.

While past performance is not a guarantee of future performance, it can be interesting to study and recognise what a business has achieved.

Let’s look at some of these growth numbers:

Altium Limited (ASX: ALU)

Altium is a software business that provides the tools for engineers to design electronic printed circuit boards. It also offers other services such as an electrical parts search engine called Octopart.

The ASX 200 tech share recently returned to a high level of growth in its FY22 result after revealing revenue growth of 23% to US$220.8 million and EPS growth of 57% to US 42.2 cents.

According to S&P Capital IQ, Altium has grown its diluted EPS before ‘extraordinary items’ at a compound annual growth rate (CAGR) of 21% over the past decade.

For FY23, Altium said it’s expecting to grow its revenue by between 15% to 20% to between US$255 million to US$265 million.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a fund manager that offers a few different investment strategies across global shares, infrastructure shares, and Australian shares.

When the ASX 200 share reported its FY22 result, Magellan had delivered significant profit growth over the prior decade. Magellan’s diluted EPS before extraordinary items had grown at a CAGR of 37.6% over the prior ten years.

However, while Magellan’s average funds under management (FUM) fell by 9% to $94.3 billion in FY22, its total FUM had fallen to just $57.6 billion as at 31 August 2022.

Brickworks Limited (ASX: BKW)

Brickworks is a large building products manufacturer in Australia. It makes, as the name implies, bricks as well as paving, masonry, precast items, and more. It also has other investments in things like industrial property.

The development of industrial properties within the trust has helped the ASX 200 share’s EPS grow. According to S&P Capital IQ, the diluted EPS before extraordinary items has grown at a CAGR of 24.7% per annum over the prior decade.

Brickworks is planning to release its FY22 result on Wednesday, 21 September 2022. Investors will be able to see how its EPS has performed during the latest reporting period.

The post Steady compounders: 3 ASX 200 shares that have delivered over a decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Altium and Brickworks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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