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My 3 Favorite Growth Stocks from the Booming Emerging Markets

Over the recent decades, we have seen a significant change in the economic forces. China is getting more and more important in the global economy and is responsible for half of the world's economic growth.

A large trading gap was created between the emerging markets and the developed nations. As a result, the old economies created huge mountains of debt and growth slowed while the unemployment rates exploded.

The emerging markets have shown an opposite image - low debt at high growth. Unknown companies became multinational super companies in only a decade and made really unknown people very rich.

Today I'd like to show you some of the best growth picks with dividend payments from the popular BRIC nations. BRIC is an abbreviation for the countries Brazil, Russia, India and China. All these countries have a huge citizen base and they have very attractive economic fundamentals to grow further and create faster wealth for the people.

My screening criteria are:

- Headquartered in a BRIC country

- Market capitalization over $2 billion

- Five-year expected EPS growth of over 5%

- Positive dividend yield

Seventeen companies fulfilled these criteria of which one stock has a high-yield and twelve are recommended to buy.

Here are my favorite stocks:

PetroChina (PTR) has a market capitalization of $261.77 billion. The company employs 552,810 people, generates revenue of $322.145 billion and has a net income of $23.464 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51.583 billion. The EBITDA margin is 16.01 percent (the operating margin is 9.11 percent and the net profit margin is 7.28 percent).

Financial Analysis: The total debt represents 16.60 percent of the company’s assets and the total debt in relation to the equity amounts to 31.75 percent. Due to the financial situation, a return on equity of 13.70 percent was realized. Twelve trailing months earnings per share reached a value of $10.36. Last fiscal year, the company paid $5.26 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.80, the P/S ratio is 0.82 and the P/B ratio is 1.62. The dividend yield amounts to 3.50 percent and the beta ratio has a value of 1.10.

Companhia de Bebidas Das Americas (ABV) has a market capitalization of $143.09 billion. The company employs 46,503 people, generates revenue of $13.369 billion and has a net income of $4.297 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.462 billion. The EBITDA margin is 48.34 percent (the operating margin is 43.17 percent and the net profit margin is 32.14 percent).

Financial Analysis: The total debt represents 8.92 percent of the company’s assets and the total debt in relation to the equity amounts to 16.07 percent. Due to the financial situation, a return on equity of 34.58 percent was realized. Twelve trailing months earnings per share reached a value of $1.54. Last fiscal year, the company paid $0.91 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.66, the P/S ratio is 10.54 and the P/B ratio is 11.31. The dividend yield amounts to 3.19 percent and the beta ratio has a value of 0.94.

China Unicom (CHU) has a market capitalization of $36.81 billion. The company employs 215,450 people, generates revenue of $33.626 billion and has a net income of $679.55 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.194 billion. The EBITDA margin is 30.32 percent (the operating margin is 2.58 percent and the net profit margin is 2.02 percent).

Financial Analysis: The total debt represents 22.99 percent of the company’s assets and the total debt in relation to the equity amounts to 50.93 percent. Due to the financial situation, a return on equity of 2.05 percent was realized. Twelve trailing months earnings per share reached a value of $0.36. Last fiscal year, the company paid $0.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 42.88, the P/S ratio is 1.11 and the P/B ratio is 1.11. The dividend yield amounts to 1.01 percent and the beta ratio has a value of 0.72.

Take a closer look at the full list of the most attractive emerging markets growth stocks. The average P/E ratio amounts to 24.99 and forward P/E ratio is 16.18. The dividend yield has a value of 1.67 percent. Price to book ratio is 3.55 and price to sales ratio 2.27. The operating margin amounts to 18.89 percent and the beta ratio is 0.74. Stocks from the list have an average debt to equity ratio of 1.02.

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Dividend stocks with solid growth from the BRIC nations originally published at long-term-investments.blogspot.com.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


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