The Dow Jones is slightly below the 12,000 mark, roughly 15 percent under the all-time high. But investors fear a double-dip recession due to the big debt burdens within the developed economies. If the predictions come true, investors need to review their portfolios and keep only stocks with a very low volatility. In addition, your stock holdings should continue to grow despite an economic downturn.
I screened the capital market by less volatile stocks (a beta ratio under one) with strong revenue and earnings growth over the past few years (double digit). In order to get some cheap stocks, my picks should have a price to earnings ratio that is less than the average. Here are the results:
1. Republic Services (RSG) hasa market capitalization of $9.93 billion. The company generates revenues of $8,106.60 million and has a net income of $507.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,212.00 million. Because of these figures, the EBITDA margin is 27.29 percent (operating margin 17.00 percent and the net profit margin finally 6.26 percent). Over the past 3 years, sales grew by 30 percent and earnings per share finally 33 percent.
The total debt representing 34.65 percent of the company’s assets and the total debt in relation to the equity amounts to 85.94 percent. Due to the financial situation, the return on equity amounts to 6.57 percent. Finally, earnings per share amounts to $1.43 of which $0.78 were paid in form of dividends to shareholders last fiscal.
Here are the price ratios of the company: The P/E ratio is 18.71, Price/Sales 1.22and Price/Book ratio 1.31. Dividend Yield: 3.29 percent. The beta ratio is 0.82.
2. MV Oil Trust (MVO) hasa market capitalization of $426.86 million. The company generates revenues of $32.53 million and has a net income of $31.68million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.68 million. Because of these figures, the EBITDA margin is 97.41 percent (operating margin 97.41 percent and the net profit margin finally97.41 percent). Over the past 3 years, sales grew by 17 percent and earnings per share finally 17 percent.
The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, the return on equity amounts to 83.87 percent. Finally, earnings per share amounts to $3.13 of which $2.76 were paid in form of dividends to shareholders last fiscal.
Here are the price ratios of the company: The P/E ratio is 11.84, Price/Sales 13.02and Price/Book ratio 11.72. Dividend Yield: 9.37 percent. The beta ratio is 0.67.
3. Bio-Reference Labs (BRLI) hasa market capitalization of $340.15 million. The company generates revenues of $458.02 million and has a net income of $26.38 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $60.20 million. Because of these figures, the EBITDA margin is 13.14 percent (operating margin 10.56 percent and the net profit margin finally 5.76 percent). Over the past 3 years, sales grew by 20 percent and earnings per share finally 27 percent.
The total debt representing 15.39 percent of the company’s assets and the total debt in relation to the equity amounts to 24.65 percent. Due to the financial situation, the return on equity amounts to 19.05 percent. Finally, earnings per share amounts to $1.23 of which $0.00 was paid in form of dividends to shareholders last fiscal.
Here are the price ratios of the company: The P/E ratio is 9.92, Price/Sales 0.78 and Price/Book ratio 2.33. Dividend Yield: None. The beta ratio is 0.82.
I screened the capital market by less volatile stocks (a beta ratio under one) with strong revenue and earnings growth over the past few years (double digit). In order to get some cheap stocks, my picks should have a price to earnings ratio that is less than the average. Here are the results:
1. Republic Services (RSG) hasa market capitalization of $9.93 billion. The company generates revenues of $8,106.60 million and has a net income of $507.50 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,212.00 million. Because of these figures, the EBITDA margin is 27.29 percent (operating margin 17.00 percent and the net profit margin finally 6.26 percent). Over the past 3 years, sales grew by 30 percent and earnings per share finally 33 percent.
The total debt representing 34.65 percent of the company’s assets and the total debt in relation to the equity amounts to 85.94 percent. Due to the financial situation, the return on equity amounts to 6.57 percent. Finally, earnings per share amounts to $1.43 of which $0.78 were paid in form of dividends to shareholders last fiscal.
Here are the price ratios of the company: The P/E ratio is 18.71, Price/Sales 1.22and Price/Book ratio 1.31. Dividend Yield: 3.29 percent. The beta ratio is 0.82.
2. MV Oil Trust (MVO) hasa market capitalization of $426.86 million. The company generates revenues of $32.53 million and has a net income of $31.68million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $31.68 million. Because of these figures, the EBITDA margin is 97.41 percent (operating margin 97.41 percent and the net profit margin finally97.41 percent). Over the past 3 years, sales grew by 17 percent and earnings per share finally 17 percent.
The total debt representing 0.00 percent of the company’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, the return on equity amounts to 83.87 percent. Finally, earnings per share amounts to $3.13 of which $2.76 were paid in form of dividends to shareholders last fiscal.
Here are the price ratios of the company: The P/E ratio is 11.84, Price/Sales 13.02and Price/Book ratio 11.72. Dividend Yield: 9.37 percent. The beta ratio is 0.67.
3. Bio-Reference Labs (BRLI) hasa market capitalization of $340.15 million. The company generates revenues of $458.02 million and has a net income of $26.38 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $60.20 million. Because of these figures, the EBITDA margin is 13.14 percent (operating margin 10.56 percent and the net profit margin finally 5.76 percent). Over the past 3 years, sales grew by 20 percent and earnings per share finally 27 percent.
The total debt representing 15.39 percent of the company’s assets and the total debt in relation to the equity amounts to 24.65 percent. Due to the financial situation, the return on equity amounts to 19.05 percent. Finally, earnings per share amounts to $1.23 of which $0.00 was paid in form of dividends to shareholders last fiscal.
Here are the price ratios of the company: The P/E ratio is 9.92, Price/Sales 0.78 and Price/Book ratio 2.33. Dividend Yield: None. The beta ratio is 0.82.
