Warren Buffett is an American investor, chairman and CEO of Berkshire Hathaway (BRK.A)(BRK.B). He is the third-richest man in the world according to Forbes and one of the most influential people in the world. The investor generates nearly USD1 billion in free cash flow per month and has additional USD37.8 billion in cash for takeover projects. As of the fourth quarter 2011, Buffett's latest portfolio had a total worth of USD66.15 billion.
Recently, Bloomberg analysts made a screen of stocks with some classical Buffett target-criteria:
- Market Capitalization from $20 Billion to $40 Billion
- Capital Expenditures / Net Fixed Assets > 10%
- Five-Year Average Growth in ROIC in Highest 50%
- Five-Year Average Operating Cash Flow Growth in Highest 50%
- P/E Ratio < Average Company Value in Home Market
Twenty-four companies worldwide remained of which 14 are U.S.-listed. Four of the results have a yield over 3 percent and 12 are currently recommended to buy.
These are my favorite stocks from the results:
Deere & Company (DE, Financial) has a market capitalization of $31.73 billion. The company employs 61,300 people, generates revenues of $32,012.50 million and has a net income of $2,799.20 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,903.20 million. Because of these figures, the EBITDA margin is 18.44 percent (operating margin 13.19 percent and the net profit margin finally 8.74 percent).
Financial Analysis: The total debt representing 55.16 percent of the company’s assets and the total debt in relation to the equity amounts to 391.01 percent. Due to the financial situation, a return on equity of 42.76 percent was realized. Twelve trailing months earnings per share reached a value of $6.73. Last fiscal year, the company paid $1.52 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.73, P/S ratio 0.99 and P/B ratio 4.72. Dividend Yield: 2.33 percent. The beta ratio is 1.52.
Tyco International (TYC, Financial) has a market capitalization of $25.49 billion. The company employs 100,000 people, generates revenues of $17,355.00 million and has a net income of $1,567.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,437.00 million. Because of these figures, the EBITDA margin is 19.80 percent (operating margin 12.21 percent and the net profit margin finally 9.03 percent).
Financial Analysis: The total debt representing 15.49 percent of the company’s assets and the total debt in relation to the equity amounts to 29.25 percent. Due to the financial situation, a return on equity of 11.07 percent was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $0.99 in form of dividends to shareholders.
Market Valuation
Here are the price ratios of the company: The P/E ratio is 18.23, the P/S ratio is 1.46 and P/B ratio is 1.80. Dividend Yield: 1.82 percent. Beta ratio: 1.13.
McKesson Corporation (MCK, Financial) has a market capitalization of $21.12 billion. The company employs 37,700 people, generates revenues of $122,734.00 million and has a net income of $1,403.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,474.00 million. Because of these figures, the EBITDA margin is 2.02 percent (operating margin 1.75 percent and the net profit margin finally 1.14 percent).
Financial Analysis: The total debt representing 12.03 percent of the company’s assets and the total debt in relation to the equity amounts to 58.26 percent. Due to the financial situation, a return on equity of 19.97 percent was realized. Twelve trailing months earnings per share reached a value of $5.60. Last fiscal year, the company paid $0.80 in dividends to shareholders.
Market Valuation
Here are the price ratios of the company: The P/E ratio is 16.03, P/S ratio is 0.17 and P/B ratio is 3.08. Dividend Yield: 0.89 percent. Beta ratio: 0.80.
Take a closer look at the full table of Warren Buffett's most wanted takeover targets. The average P/E ratio amounts to 16.18 and the forward P/E ratio is 10.55. The dividend yield has a value of 2.11 percent. Price to book ratio is 2.50 and price to sales ratio is 2.16. The operating margin amounts to 24.11 percent.
Related stock ticker symbols:
SSL, D, PUK, NEM, DE, ITC, TYC, COV, GG, CMI, POT, MOS, MCK, APA
Selected Articles:
· Warren Buffett’s Best Yielding Stock Holdings
· Warren Buffett - Berkshire Hathaway Q4/2011 Fund Portfolio
Recently, Bloomberg analysts made a screen of stocks with some classical Buffett target-criteria:
- Market Capitalization from $20 Billion to $40 Billion
- Capital Expenditures / Net Fixed Assets > 10%
- Five-Year Average Growth in ROIC in Highest 50%
- Five-Year Average Operating Cash Flow Growth in Highest 50%
- P/E Ratio < Average Company Value in Home Market
Twenty-four companies worldwide remained of which 14 are U.S.-listed. Four of the results have a yield over 3 percent and 12 are currently recommended to buy.
These are my favorite stocks from the results:
Deere & Company (DE, Financial) has a market capitalization of $31.73 billion. The company employs 61,300 people, generates revenues of $32,012.50 million and has a net income of $2,799.20 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,903.20 million. Because of these figures, the EBITDA margin is 18.44 percent (operating margin 13.19 percent and the net profit margin finally 8.74 percent).
Financial Analysis: The total debt representing 55.16 percent of the company’s assets and the total debt in relation to the equity amounts to 391.01 percent. Due to the financial situation, a return on equity of 42.76 percent was realized. Twelve trailing months earnings per share reached a value of $6.73. Last fiscal year, the company paid $1.52 in form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.73, P/S ratio 0.99 and P/B ratio 4.72. Dividend Yield: 2.33 percent. The beta ratio is 1.52.
Tyco International (TYC, Financial) has a market capitalization of $25.49 billion. The company employs 100,000 people, generates revenues of $17,355.00 million and has a net income of $1,567.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,437.00 million. Because of these figures, the EBITDA margin is 19.80 percent (operating margin 12.21 percent and the net profit margin finally 9.03 percent).
Financial Analysis: The total debt representing 15.49 percent of the company’s assets and the total debt in relation to the equity amounts to 29.25 percent. Due to the financial situation, a return on equity of 11.07 percent was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $0.99 in form of dividends to shareholders.
Market Valuation
Here are the price ratios of the company: The P/E ratio is 18.23, the P/S ratio is 1.46 and P/B ratio is 1.80. Dividend Yield: 1.82 percent. Beta ratio: 1.13.
McKesson Corporation (MCK, Financial) has a market capitalization of $21.12 billion. The company employs 37,700 people, generates revenues of $122,734.00 million and has a net income of $1,403.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,474.00 million. Because of these figures, the EBITDA margin is 2.02 percent (operating margin 1.75 percent and the net profit margin finally 1.14 percent).
Financial Analysis: The total debt representing 12.03 percent of the company’s assets and the total debt in relation to the equity amounts to 58.26 percent. Due to the financial situation, a return on equity of 19.97 percent was realized. Twelve trailing months earnings per share reached a value of $5.60. Last fiscal year, the company paid $0.80 in dividends to shareholders.
Market Valuation
Here are the price ratios of the company: The P/E ratio is 16.03, P/S ratio is 0.17 and P/B ratio is 3.08. Dividend Yield: 0.89 percent. Beta ratio: 0.80.
Take a closer look at the full table of Warren Buffett's most wanted takeover targets. The average P/E ratio amounts to 16.18 and the forward P/E ratio is 10.55. The dividend yield has a value of 2.11 percent. Price to book ratio is 2.50 and price to sales ratio is 2.16. The operating margin amounts to 24.11 percent.
Related stock ticker symbols:
SSL, D, PUK, NEM, DE, ITC, TYC, COV, GG, CMI, POT, MOS, MCK, APA
Selected Articles:
· Warren Buffett’s Best Yielding Stock Holdings
· Warren Buffett - Berkshire Hathaway Q4/2011 Fund Portfolio
