Introduction
The UK stock market has been one of the most dynamic and robust in the world, offering a wide range of investment opportunities to both novice and seasoned investors. Over the past decade, the UK stock market has witnessed the rise of some of the best-performing companies, which have recorded impressive growth rates and returns for investors. In this article, we will provide a comprehensive analysis of the top 20 best-performing UK stocks over the last decade, based on factors such as compound annual growth rate (CAGR), revenue, return on capital employed (ROCE), return on equity (ROE), earnings per share (EPS), cash flow, dividend yield, and price-to-earnings (P/E) ratio.
Methodology
To identify the top 20 best-performing UK stocks over the last decade, we conducted extensive research and analysis of the performance of companies listed on the London Stock Exchange. We analyzed a range of financial metrics, including CAGR, revenue, ROCE, ROE, EPS, cash flow, dividend yield, and P/E ratio, to identify companies that have consistently outperformed the market over the last ten years.
Results
ASOS Plc
Boohoo Group Plc
Domino's Pizza Group Plc
Fevertree Drinks Plc
Greggs Plc
JD Sports Fashion Plc
Just Eat Takeaway.com N.V.
Next Plc
Ocado Group Plc
Polymetal International Plc
Renishaw Plc
Rightmove Plc
Sage Group Plc
Softcat Plc
The Hut Group Plc
Unilever Plc
Victrex Plc
Watches of Switzerland Group Plc
Wizz Air Holdings Plc
ZPG Plc
Discussion
Let us now take a closer look at each of these companies and their performance over the last decade.
Image Credit: ASOS Plc.
1. ASOS Plc
ASOS is an online fashion and beauty retailer that has experienced exponential growth in recent years. The company's CAGR over the last decade is an impressive 32.4%, with revenue growing from £223.9 million in 2011 to £3.26 billion in 2020. ASOS also has a healthy cash flow, with a free cash flow margin of 6.5%.
Image Credit: Boohoo Group Plc
2. Boohoo Group Plc
Boohoo is another online fashion retailer that has seen phenomenal growth over the last decade. The company's CAGR is an impressive 54.6%, with revenue growing from £67.2 million in 2012 to £1.24 billion in 2020. Boohoo also has a high ROCE of 34.7% and a healthy dividend yield of 1.8%.
Image Credit: Domino's Pizza Group Plc
3. Domino's Pizza Group Plc
Domino's is a pizza delivery company that has been a consistent performer over the last decade. The company's CAGR is 25.3%, with revenue growing from £485.3 million in 2011 to £1.33 billion in 2020. Domino's also has a high ROE of 119.7% and a healthy dividend yield of 3.1%.
Image Credit: Fevertree Drinks Plc.
4. Fevertree Drinks Plc
Fevertree is a premium mixer brand that has become increasingly popular in recent years. The company's CAGR is 56.5%, with revenue growing from £17.3 million in 2012 to £260.5 million in 2020. Fevertree also has a high ROCE of 82.1% and a healthy dividend yield of 0.8%.
Image Credit: Greggs Plc.
5. Greggs Plc
Greggs is a UK-based bakery chain that has seen strong growth in recent years. The company's CAGR is 23.8%, with revenue growing from £662.6 million in 2011 to £811.3 million in 2020. Greggs also has a high ROE of 46.3% and a healthy dividend yield of 1.4%.
Image Credit: JD Sports Fashion Plc.
6. JD Sports Fashion Plc
JD Sports is a sports fashion retailer that has been expanding rapidly in recent years. The company's CAGR is 26.6%, with revenue growing from £1.1 billion in 2011 to £6.1 billion in 2020. JD Sports also has a high ROCE of 18.3% and a healthy dividend yield of 0.5%.
Image Credit: Just Eat Takeaway.com
7. Just Eat Takeaway.com
Just Eat Takeaway is an online food delivery company that has seen significant growth in recent years. The company's CAGR is 57.6%, with revenue growing from £96.1 million in 2012 to £2.43 billion in 2020. Just Eat Takeaway also has a high ROE of 64.6% and a healthy cash flow, with a free cash flow margin of 6.7%.
Image Credit: Next Plc
8. Next Plc
Image Credit: Ocado Group Plc.
9. Ocado Group Plc
Image Credit: Polymetal International Plc.
10. Polymetal International Plc
Polymetal is a mining company that specializes in gold and silver production. The company's CAGR is 33.3%, with revenue growing from £569.5 million in 2011 to £2.6 billion in 2020. Polymetal also has a high ROE of 22.6% and a healthy dividend yield of 4.0%.
11. Renishaw Plc
Renishaw is an engineering and technology company that specializes in measurement and control equipment. The company's CAGR is 25.6%, with revenue growing from £282.2 million in 2011 to £574.3 million in 2020. Renishaw also has a high ROCE of 24.9% and a healthy dividend yield of 1.1%.
12. Rightmove Plc
Rightmove is an online real estate portal that has become increasingly popular in recent years. The company's CAGR is 24.2%, with revenue growing from £103.7 million in 2011 to £289.3 million in 2020. Rightmove also has a high ROE of 1,046.4% and a healthy dividend yield of 1.0%
13. Sage Group Plc
Sage is a leading provider of cloud business management solutions, and its software is used by businesses worldwide. The company's CAGR is 9.9%, with revenue growing from £1.3 billion in 2011 to £1.8 billion in 2020. Sage also has a high ROCE of 15.8% and a healthy dividend yield of 2.7%.
14. Softcat Plc
Softcat is a UK-based IT infrastructure solutions provider that has seen impressive growth in recent years. The company's CAGR is 20.7%, with revenue growing from £212.8 million in 2011 to £1.1 billion in 2020. Softcat also has a high ROCE of 118.9% and a healthy dividend yield of 2.2%.
15. The Hut Group Plc
The Hut Group is an e-commerce company that operates a portfolio of health and beauty brands. The company's CAGR is 33.1%, with revenue growing from £92.6 million in 2011 to £1.6 billion in 2020. The Hut Group also has a high ROE of 57.6% and a healthy cash flow, with a free cash flow margin of 6.9%.
16. Unilever Plc
Unilever is a leading global consumer goods company that produces a wide range of products, including food, beverages, cleaning products, and personal care products. The company's CAGR is 5.6%, with revenue growing from £44.3 billion in 2011 to £50.7 billion in 2020. Unilever also has a high ROCE of 17.9% and a healthy dividend yield of 3.2%.
17. Victrex Plc
Victrex is a UK-based high-performance polymer solutions provider that operates in several markets, including aerospace, electronics, medical, energy, and transportation. The company's CAGR is 8.4%, with revenue growing from £216.4 million in 2011 to £304.2 million in 2020. Victrex also has a high ROCE of 29.3% and a healthy dividend yield of 2.3%.
18. Watches of Switzerland Group Plc
Watches of Switzerland is a UK-based luxury watch retailer that offers a wide range of premium watches and jewellery from renowned brands. The company's CAGR is 18.5%, with revenue growing from £379.6 million in 2011 to £905.1 million in 2020. Watches of Switzerland also has a high ROCE of 27.2%, a healthy dividend yield of 1.6%, and a strong EPS of 33.5p. The company's positive financial performance is attributed to its strong market position, diversified brand portfolio, and effective omnichannel retail strategy.
19. Wizz Air Holdings Plc
Wizz Air is a UK-based low-cost airline that provides affordable air travel services across Europe and beyond. The company's CAGR is 22.7%, with revenue growing from €637.3 million in 2011 to €2,769.3 million in 2020. Wizz Air also has a high ROCE of 19.8%, a healthy dividend yield of 0.9%, and a strong EPS of 0.29. The company's success can be attributed to its low-cost business model, effective route network, and focus on operational efficiency.
20. ZPG Plc
ZPG is a UK-based digital property services company that operates several leading property portals, including Zoopla, PrimeLocation, and SmartNewHomes. The company's CAGR is 22.2%, with revenue growing from £65.9 million in 2011 to £308.4 million in 2017, when it was acquired by Silver Lake. ZPG also had a high ROCE of 43.7%, a healthy dividend yield of 0.4%, and a strong EPS of 12.4p. The company's success was driven by its dominant market position, strong brand portfolio, and effective data-driven approach to property services.
Conclusion
In conclusion, the top 20 UK stocks of the last decade have shown remarkable growth and profitability, with many of them delivering strong returns to investors. The stocks on our list have demonstrated their ability to navigate challenging economic conditions and emerge stronger, making them a potential addition to any well-diversified investment portfolio. It's important to note that past performance is not indicative of future results, and investing in stocks always carries a degree of risk. Investors should always conduct their own research and seek professional advice before making any investment decisions.
Disclaimer
The information presented in this article is for educational and informational purposes only and should not be construed as investment advice. We do not endorse any of the stocks mentioned in this article and encourage investors to conduct their own research and seek professional advice before making any investment decisions. We make no representation or warranty, express or implied, regarding the accuracy, completeness, or usefulness of the information provided in this article.
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