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My 3 Favorite Dividend-Paying Large Caps with Cheap Price Ratios

Each month, I make a screen of America’s cheapest dividend-paying large-capitalized stocks with highest expected growth for the upcoming fiscal year. I want to know what stocks are cheap and which opportunities are available. It’s hard to find real bargains at the market, especially when the market booms and price ratios go up.

My criteria for the cheap large cap screen are: a market capitalization of more than USD10 billion with expected earnings per share growth of at least 10 percent for the next year. In addition, the P/E ratio should be less than 15 and the P/S and P/B ratio both under two.

Twelve companies fulfilled these criteria of which eight are recommended to buy. Two of the results have a high yield.

Here are my favorites:

Energy Transfer Partners (ETP) has a market capitalization of $14.63 billion. The company employs 13,847 people, generates revenue of $15.702 billion and has a net income of $1.757 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.986 billion. The EBITDA margin is 12.65 percent (the operating margin is 8.15 percent and the net profit margin 11.19 percent).

Financial Analysis: The total debt represents 37.51 percent of the company’s assets and the total debt in relation to the equity amounts to 176.25 percent. Due to the financial situation, a return on equity of 16.82 percent was realized. Twelve trailing months earnings per share reached a value of $5.25. Last fiscal year, the company paid $3.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.17, the P/S ratio is 0.97 and the P/B ratio is finally 1.61. The dividend yield amounts to 7.42 percent and the beta ratio has a value of 0.64.

General Electric (GE) has a market capitalization of $222.00 billion. The company employs 305,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $28.367 billion. The EBITDA margin is 19.25 percent (the operating margin is 11.81 percent and the net profit margin 10.11 percent).

Financial Analysis: The total debt represents 60.42 percent of the company’s assets and the total debt in relation to the equity amounts to 336.56 percent. Due to the financial situation, a return on equity of 12.24 percent was realized. Twelve trailing months earnings per share reached a value of $1.43. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.92, the P/S ratio is 1.50 and the P/B ratio is finally 1.81. The dividend yield amounts to 3.56 percent and the beta ratio has a value of 1.68.

National-Oilwell (NOV) has a market capitalization of $27.75 billion. The company employs 42,183 people, generates revenue of $20.041 billion and has a net income of $2.483 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.185 billion. The EBITDA margin is 20.88 percent (the operating margin is 17.75 percent and the net profit margin 12.39 percent).

Financial Analysis: The total debt represents 10.00 percent of the company’s assets and the total debt in relation to the equity amounts to 15.56 percent. Due to the financial situation, a return on equity of 13.16 percent was realized. Twelve trailing months earnings per share reached a value of $5.83. Last fiscal year, the company paid $0.49 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.15, the P/S ratio is 1.39 and the P/B ratio is finally 1.37. The dividend yield amounts to 0.80 percent and the beta ratio has a value of 1.67.

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 10.69 while the forward P/E ratio is 9.64. P/S ratio is 0.98 and P/B ratio 1.32. The expected earnings growth for next year amounts to 14.48 and 5.23 percent for the upcoming five years.

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Cheap large capitalized stocks with high growth 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.

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