Cheapest Large Caps with Highest Expected Growth as of April 2012

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Apr 23, 2012
Here is a current sheet of America’s cheapest large caps with the highest expected growth for the upcoming fiscal years. Stocks from the sheet have a market capitalization of more than USD10 billion and earnings per share are expected to grow for at least 20% over the next half decade. Despite the strong growth, they still have a P/E ratio of less than 20 and a P/S ratio of less than 2. Twelve stocks fulfilled these ,of which nine pay dividends. Ten of the results are recommended to buy. The highest yielding stocks is the steel and iron company Arcelor Mittal with a yield of 4.41%.


Here are my favorites:


ArcelorMittal (MT, Financial) has a market capitalization of $26.36 billion. The company employs 261,000 people, generates revenues of $93,973.00 million and has a net income of $1,798.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,580.00 million. Because of these figures, the EBITDA margin is 10.19% (operating margin 5.21% and the net profit margin finally 1.91%).


The total debt representing 21.68% of the company’s assets and the total debt in relation to the equity amounts to 46.60%. Due to the financial situation, a return on equity of 3.03% was realized. Twelve trailing months earnings per share reached a value of $0.87. Last fiscal year, the company paid $0.75 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 19.47, P/S ratio 0.28 and P/B ratio 0.47. Dividend Yield: 4.41%. The beta ratio is 2.15.


Baker Hughes Incorporated (BHI, Financial) has a market capitalization of $17.70 billion. The company employs 57,700 people, generates revenues of $19,831.00 million and has a net income of $1,743.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,877.00 million. Because of these figures, the EBITDA margin is 19.55% (operating margin 12.91% and the net profit margin finally 8.79%).


The total debt representing 16.38% of the company’s assets and the total debt in relation to the equity amounts to 25.84%. Due to the financial situation, a return on equity of 11.65% was realized. Twelve trailing months earnings per share reached a value of $3.97. Last fiscal year, the company paid $0.60 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 10.20, P/S ratio 0.89 and P/B ratio 1.12. Dividend Yield: 1.48%. The beta ratio is 1.59.


BRF Brasil Foods (BRFS, Financial) has a market capitalization of $16.36 billion. The company employs 114,273 people, generates revenues of $12,118.00 million and has a net income of $430.09 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,207.57 million. Because of these figures, the EBITDA margin is 9.97% (operating margin 4.42% and the net profit margin finally 3.55%).


The total debt representing 26.25% of the company’s assets and the total debt in relation to the equity amounts to 53.45%. Due to the financial situation, a return on equity of 6.04% was realized. Twelve trailing months earnings per share reached a value of $0.99. Last fiscal year, the company paid $0.16 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 19.08, P/S ratio 1.34 and P/B ratio 2.26. Dividend Yield: 2.32%. The beta ratio is 1.35.


Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 11.82 while the forward P/E ratio is 7.82. P/S ratio is 0.86 and P/B ratio 2.05. The expected earnings growth for next year amounts to 24.26 and 30.35% for the upcoming five years.


Related stock ticker symbols:

MT, CRH, SI, STX, BCS, CVE, MPC, BHI, HAL, DLPH, MITSY, BRFS


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• 8 Large Cap High Yields Below Book Value

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