Orange County’s publicly traded companies probably popped a lot of champagne bottles during the past year.
The market capitalization of 87 on the Business Journal’s annual list jumped another 15.4% to $126.4 billion in the 12 months ended March 29.
Granted, it wasn’t as high as last year’s 27% rise in market values. Still, in an imperfect contrast during the same period, the Russell 3000 rose 13.8% and the S&P 500 climbed 14%.
For our annual list, we included all OC-based companies trading on the New York Stock Exchange or Nasdaq. We excluded several over-the-counter penny stocks that reported under $1 million in annual revenue or didn’t file recent reports with the Securities and Exchange Commission.
The list includes companies with market values of at least $2.5 million on March 29.
Companies’ combined revenue climbed 9.4% to $45 billion, according to their most recent annual reports. They reported net income of $4.51 billion, up 5.1%. Assets increased 11.7% to $121.9 billion.
They grew employment faster in OC, 4.1% to 23,157, than the companywide count, which was 2.7% to 202,681.
• The biggest increase by dollar amount was No. 1, Edwards Lifesciences Corp. (NYSE: EW), whose market cap rose almost $10 billion, or 47%, to $29.3 billion. In the past decade, Edwards has become a 13-bagger.
Much of the recent spike began in November, when it shook off a third-quarter revenue shortfall caused by natural disasters, and in December it affirmed its 2018 guidance.
Edwards’ increase accounted for about 55% of the overall $16.9 billion rise in OC market caps.
• New on the list is No. 2, Skyworks Solutions Inc. (Nasdaq: SWKS), which debuts at an $18.3 billion market cap.
Although the chipmaker designates its headquarters in Woburn, Mass., it’s managed from Irvine. The company is moving into new areas, such as supplying Chinese manufacturing giant ZTE Corp. with integrated chips embedded in after-market products that essentially turn nonconnected vehicles into roaming hot spots.
Of Note
The biggest drop in dollar terms was $3.7 billion to $11.1 billion by No. 3, Irvine-based real estate investment trust HCP Inc., which faced exposure to troubled tenants.
Some well-known firms are no longer on the list:
• Last year’s highest ranking, Western Digital Corp., with a $27 billion market cap, moved its headquarters from Irvine to San Jose.
• We also removed previous No. 7, CalAtlantic Group Inc. (NYSE: CAA) after it was bought in February by Miami-based Lennar Corp.
• Also gone is Aerie Pharmaceuticals Inc., No. 15 last year, because it moved to North Carolina.
Most companies on our list grew their market capitalizations—12 of them had triple-digit percentage growth. The market caps of 33 companies, a little over a third, declined. This year’s list has 12 newcomers.
In a separate article, we examine the five best and five worst-performing stocks of the trailing 12 months (see page 21).
Other notable changes include:
• Troubled California First National Bancorp (OTCQX: CFNB), an Irvine-based bank that’s facing regulatory scrutiny. It gave up Wall Street’s main stage by jumping from the Nasdaq to an over-the-counter exchange in November, citing regulatory costs. The change actually improved its market cap 2.8% to $171 million, good for the No. 51 spot.
• The biggest market cap increase among local banks, Pacific Premier Bancorp (Nasdaq: PPBI), which was up 72% to $1.86 billion. The bank used its shares to buy two banks last year, Heritage Oaks Bancorp and Plaza Bancorp, and this year is buying a third, Grandpoint Capital Inc. (OTC: Pink: GPNC).
• Willdan Group Inc. (Nasdaq: WLDN), an engineering firm in Anaheim. It was a mystical 30 bagger as its shares increased 30-fold from 2013 to early 2017. This past year has been a roller coaster. It sunk from a high of $36.87 last April to as low as $19.10 in February, and ended March at $28.35. In the past 12 months, its market cap declined 7.6% to $250.8 million.
• First American Financial Corp. (NYSE: FAF), a Santa Ana-based title insurer. It enjoyed a 51% leap in market cap to $6.5 billion. The company reported rising revenue, profit, dividends and cash flow last year.
• GBGI Ltd. (LSI: GBGI.L), a Foothill Ranch-based insurer of expatriates that began trading in February 2017 on the London Stock Exchange. Its market cap dropped 35% to $142.2 million, the biggest reason a $20 million reduction in premiums following a currency devaluation in Angola this year.
• A popular play among prominent stock pickers, No. 45, ChromaDex Corp. (Nasdaq: CDXC), an Irvine-based maker of ingredients for nutritional supplements. Its stock price was as low as $2.27 last May, then rocketed to as high as $6.96 on word that investors included Hong Kong billionaire Li Ka-Shing and the investment firm of Iconiq Capital, whose billionaire investors include Mark Zuckerberg and Henry Kravis. By March 29, its share price had fallen to $4.20. That was still good enough for a 125% increase in market cap to $229.2 million.
