Boring Stocks with Exciting Returns

1. Comfort Systems USA, Inc.  $FIX

7.8B Market cap

Comfort Systems USA is a prominent provider of mechanical, electrical, and plumbing building systems, operating through over 45 companies in 170 locations across the United States. The company focuses on HVAC, plumbing, and controls and offers comprehensive services for commercial, industrial, and institutional buildings. They specialize in both installation for newly constructed facilities and maintenance services for existing buildings. I know, pretty boring. Now, here's the exciting part:

• Annual EPS growth of 25% 
• Last quarter EPS grew by 67% and next quarter it's expected to grow by 45% 
• Management has proven to be effective with a ROA of 10.10%, ROE of 27% and ROI of 19%
• Positive free cash flow for 24 consecutive years
• $4.29B in construction backlog 
• Revenue +28% yoy with 2024 forecasted revenue growth of 38%
• Price action is extremely strong.

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2. Alimentation Couche-Tard Inc.  $ATD.TO

‍77B Market cap

Alimentation Couche-Tard Inc. is a global leader in convenience and mobility, with over 14,400 stores across 29 countries. Specializing in road transportation fuel and convenience store operations, it operates under banners such as Couche-Tard and Circle K. The company has a strong presence in the United States, Canada, Scandinavia, the Baltics, Ireland, Poland, and more. With brands like Circle K, Couche-Tard, and Ingo, it is a major player in the convenience retail industry, managing about 17 business units in North America and seven in Europe. So they own a bunch of gas stations, cool. A recession-proof stock? Even cooler.

• Delivered EBITDA compounded annual growth rate of 15.4% over the past 10 years 
• EPS compounded annual growth rate of 19.6% over the past 10 years
• Participating in the energy transition and has already begun changing some gas stations to EV charging stations ( Scandinavia)
• High management effectiveness with a ROE of 23%
• Proven to provide consistent growth at an affordable price at a P/E of 19

3. Dollarama Inc. $DOL.TO

‍27.7B Market Cap

Dollarama is a Canadian retail chain offering a wide range of everyday products at affordable prices. Founded in 1992, it has become a prominent dollar store with over 1,300 locations across Canada. The store's inventory includes household items, party supplies, snacks, and seasonal goods, all priced at $5 or less. Known for its value-driven model, Dollarama attracts customers seeking budget-friendly options. Everybody knows what a dollar store is, so let us just get to the good stuff.

• Dollarama's profit margin of 16.63% surpasses both of its American counterparts, Dollar General (4.91%) and Dollar Tree (3.92%) 
• Their 50.1% investment in Dollarcity (Latin America) has been contributing increasingly more to Total sales. Dollarama aims for 850 Dollarcity stores by 2029, with a projected CAGR of 9.2%, based on the assumption of having 500 stores by the end of 2023

• Consistent Revenue growth 
• Dollarama has been able to consistently increase the number of stores in Canada, achieving a CAGR of 5.8% since 2013
• 10-year CAGRs: Revenue 10.5%, EBIT 12.4%, Net Earnings 13.8%
• Achieved approximately 30% returns on capital in recent years, indicative of effective management

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Disclosure: I got a small % of my port in ATD. No ownership in any of the other stocks mentioned. I do believe they are all great businesses.