Overall, Danone SA (ADR) (OTCMKTS:DANOY) grew its revenue and free cash flow 8% and 11% respectively in 2012. Its long-term debt to equity ratio calculates at 52%. Cash and investments represent 25% of its stockholder’s equity. Its return on equity clocks in at 14%.
The emerging world harbors a need for nutrition. The developed world needs healthier choices to cut down on obesity and on subsequent healthcare costs. Danone SA (ADR) (OTCMKTS:DANOY) can help fulfill this global need.
In 2012, Annie’s revenue increased 20%. Its free cash flow swung from a negative $2 million to a positive $6 million. Annies Inc (NYSE:BNNY)’s possesses no long term debt. Its return on equity clocks in at 18%.
However, declining gross and operating margins should concern any prospective investor. In its most recent quarter, Annie’s (NYSE:BNNY) gross and operating margins declined 75 basis points and 95 basis points respectively.
In its most recent quarter, Annies Inc (NYSE:BNNY)’s gave guidance of 18% to 20% sales growth for FY 2014 and adjusted EPS growth of 21% to 26%. This gives indication of management’s belief that consumer preference for natural and organic foods will continue into next year.
On the whole, these companies cater to the growing natural and organic food markets. Growing pressures on the consumer from rising healthcare costs and the desire to live longer should serve as catalysts for fundamental growth. These companies deserve a place on your Motley Fool Watch List and warrant further research.
Speaking of making investors rich…It’s hard to believe that a grocery store could book investors more than 30 times their initial investment, but that’s just what Whole Foods has done for those who saw the organic trend coming some 20 years ago. However, it may not be too late to participate in the long-term growth of this organic foods powerhouse.
William Bias has no position in any stocks mentioned. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market.
The article 3 Companies That Are Good for Your Health originally appeared on Fool.com.
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