Oct 06, 2025
One of the best ways to measure sustained business performance is through compound annual growth rate (CAGR). Unlike single-year results, CAGR smooths performance across multiple years, showing whether a company is consistently expanding revenue, profits, or earnings per share.
For investors, high CAGRs can signal scalable business models and resilient demand. Below, we highlight five companies that stand out for their multi-year growth momentum — then walk through how to find similar high-growth names using FMP's Income Statement API.
CAGR can hide messy realities—acquisitions, currency swings, base‐effect rebounds, or one-off cost cuts. To turn “fast growth” into an investable idea, pressure-test three things: quality, durability, and cost of growth.
Quality. Distinguish organic from acquisitive expansion and check whether growth shows up in unit economics. Rising revenue alongside flat/declining gross margin or heavy sales & marketing can signal growth that's being “bought,” not earned.
Durability. Look for margin and reinvestment stability. Healthy stories pair multi-year revenue CAGR with improving operating margin, steady R&D/innovation spend, and expanding return on invested capital (ROIC). Volatile working capital or lumpy results imply sensitivity to macro or inventory cycles.
Cost of growth. High top-line CAGR can be offset by cash burn, capex intensity, or dilution. Track cash conversion (CFO → FCF), capex/revenue, and stock-based compensation as a share of revenue to see what shareholders actually keep.
Make it systematic with FMP. Start with the Income Statement for multi-year revenue/EBITDA/EPS and compute rolling 3- and 5-year CAGRs. Layer the Cash Flow Statement to evaluate cash conversion and capex, and add Key Metrics/Ratios (ROIC, margins, leverage) to confirm improving economics. For sectors where mix matters, pull Segment or Geography lines (when available in filings via statements) to see whether growth is concentrated in the right businesses. This turns a list of high CAGRs into a shortlist of high-quality, sustainable growers.
Instead of calculating growth manually from scattered reports, you can automate CAGR tracking with FMP's Income Statement API.
Use the Income Statement API to fetch key financials such as revenue, EPS, and EBITDA for any company.
Endpoint:
https://financialmodelingprep.com/stable/income-statement?symbol=AAPL&apikey=YOUR_API_KEY
Sample Response:
{
"date": "2024-09-28",
"symbol": "AAPL",
"revenue": 391035000000,
"ebitda": 134661000000,
"netIncome": 93736000000,
"eps": 6.11
}
Query past years to build a time series for the metric you want (e.g., revenue).
Apply the formula:
CAGR = (Ending Value / Beginning Value)^(1 / Years) - 1
If you want to screen many companies at once, use the Income Statement Bulk API:
Endpoint:
https://financialmodelingprep.com/stable/income-statement-bulk?year=2025&period=FY&apikey=YOUR_API_KEY
This returns income statements for thousands of companies in one call. From there, you can loop through results, calculate CAGRs, and filter by thresholds (e.g., 5-year revenue CAGR > 15%).
You can also explore more tools and market data on Financial Modeling Prep.
If you're just exploring, FMP's Free plan lets you try the Income Statement API with a curated list of popular tickers (AAPL, TSLA, AMZN, MSFT, NVDA, GOOGL, META, NFLX, JPM, V, BAC, and many more). For broader screening across all U.S. exchanges, the Starter plan removes most symbol restrictions so you can analyze any listed U.S. company. Analysts who need international coverage and deeper historical data will benefit from the Premium plan, which adds access to U.K. and Canadian exchanges.
CAGR is one of the clearest signals of sustained performance. Futu, NIO, Chefs' Warehouse, Arista Networks, and Arch Capital all show exceptional multi-year growth across revenue, EPS, or EBITDA.
With FMP's Income Statement API and Income Statement Bulk API, you can replicate this analysis — pulling raw data, calculating growth rates, and screening for the strongest performers at scale. It's a systematic way to surface companies with the financial momentum to power long-term returns.
Introduction In the competitive landscape of modern business, companies that consistently outperform their peers ofte...
Introduction Apple (NASDAQ: AAPL) has been working to diversify its supply chain, reducing dependence on China due to...
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is a leading player in the global semiconductor industry. Known f...