I made a screen of America’s cheapest large capitalized stocks with highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD $10 billion, and earnings per share are expected to grow for at least 15 percent. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S and P/B ratio of less than two. Fourteen companies fulfilled the mentioned criteria, thirteen of which have a buy or better recommendation. Eleven of the results pay dividends.
The highest yielding stock is now China Petroleum & Chemical Corp. (SNP). The company yields at 4.39 percent but long-term earnings are expected to fall by around one percent for the next five years. The best picks by mid-term growth are Mitsui & Co. Ltd. (MITSY) and Honda Motor Co. Ltd. (HMC).
Here are my favorites from the list:
Ericsson (ERIC ) has a market capitalization of $29.78 billion. The company employs 109,214 people, generates revenue of $34.307 billion and has a net income of $1.900 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.608 billion. The EBITDA margin is 13.43 percent (the operating margin is 7.89 percent and the net profit margin is 5.54 percent).
Financial Analysis: The total debt represents 11.07 percent of the company’s assets and the total debt in relation to the equity amounts to 21.68 percent. Due to the financial situation, a return on equity of 8.46 percent was realized. Twelve trailing months earnings per share reached a value of $0.62. Last fiscal year, the company paid $0.38 in the form of dividends to shareholders. The earnings per share are expected to grow by 29.41 for the next year and 9.62 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: the P/E ratio is 14.42, the P/S ratio is 0.87 and the P/B ratio is 1.38. The dividend yield amounts to 3.85 percent and the beta ratio has a value of 1.02.
Bunge Ltd. (BG) has a market capitalization of $10.68 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.685 billion. The EBITDA margin is 2.87 percent (the operating margin is 1.6 percent and the net profit margin 1.53 percent).
Financial Analysis: The total debt represents 17.53 percent of the company’s assets and the total debt in relation to the equity amounts to 34.86 percent. Due to the financial situation, a return on equity of 8.05 percent was realized. Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders. The earnings per share are expected to grow by 21.22 for the next year and 10 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: the P/E ratio is 12.45, the P/S ratio is 0.18 and the P/B ratio is 0.97. The dividend yield amounts to 1.48 percent and the beta ratio has a value of 1.18.
FedEx Corp. (FDX) has a market capitalization of $27.56 billion. The company employs 101,000 people, generates revenue of $42.68 billion and has a net income of $2.032 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.304 billion. The EBITDA margin is 12.43 percent (the operating margin is 7.46 percent and the net profit margin is 4.76 percent).
Financial Analysis: The total debt represents 5.57 percent of the company’s assets and the total debt in relation to the equity amounts to 11.32 percent. Due to the financial situation, a return on equity of 13.55 percent was realized. Twelve trailing months earnings per share reached a value of $6.40. Last fiscal year, the company paid $0.52 in the form of dividends to shareholders. The earnings per share are expected to grow by 21.17 for the next year and 12.41 percent for the upcoming five years.
Market Valuation: Here are the price ratios of the company: the P/E ratio is 13.71, the P/S ratio is 0.65 and the P/B ratio is 1.89. The dividend yield amounts to 0.64 percent and the beta ratio has a value of 1.24.
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 12.28 while the forward P/E ratio is 8.84. The P/S ratio is 0.71 and P/B ratio 1.07. The expected earnings growth for next year amounts to 25.33 and 15.47 percent for the upcoming five years.






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