My 3 Favorite Utilities with Low Price Ratios

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May 06, 2013
Today I proceed with my monthly dividend screen of the cheapest stocks measured by the lowest forward P/E. Utilities are next.

In my screen I observe only shares with a market cap over USD10 billion and a positive dividend yield. The 20 cheapest utilities have a valuation multiple between 9.2 and 16.96, calculated on expected earnings. Six stocks have a buy or better recommendation.

Here are my favorite stocks:

National Grid (NGG) has a market capitalization of $46.55 billion. The company employs 25,645 people, generates revenue of $21.537 billion and has a net income of $3.173 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.382 billion. The EBITDA margin is 34.28 percent (the operating margin is 25.08 percent and the net profit margin 14.73 percent).

Financial Analysis: The total debt represents 48.64 percent of the company’s assets and the total debt in relation to the equity amounts to 249.22 percent. Due to the financial situation, a return on equity of 22.25 percent was realized. Twelve trailing months earnings per share reached a value of $4.93. Last fiscal year, the company paid $3.06 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.99, the P/S ratio is 2.18 and the P/B ratio is finally 3.29. The dividend yield amounts to 4.95 percent and the beta ratio has a value of 0.61.

Duke Energy (DUK) has a market capitalization of $52.58 billion. The company employs 27,885 people, generates revenue of $19.624 billion and has a net income of $1.746 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.399 billion. The EBITDA margin is 27.51 percent (the operating margin is 15.85 percent and the net profit margin 8.90 percent).

Financial Analysis: The total debt represents 35.59 percent of the company’s assets and the total debt in relation to the equity amounts to 99.16 percent. Due to the financial situation, a return on equity of 5.44 percent was realized. Twelve trailing months earnings per share reached a value of $3.31. Last fiscal year, the company paid $3.03 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.49, the P/S ratio is 2.68 and the P/B ratio is finally 1.28. The dividend yield amounts to 4.11 percent and the beta ratio has a value of 0.33.

Consolidated Edison (ED) has a market capitalization of $18.65 billion. The company employs 14,529 people, generates revenue of $12.188 billion and has a net income of $1.141 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.294 billion. The EBITDA margin is 27.03 percent (the operating margin is 19.19 percent and the net profit margin 9.36 percent).

Financial Analysis: The total debt represents 27.44 percent of the company’s assets and the total debt in relation to the equity amounts to 95.28 percent. Due to the financial situation, a return on equity of 9.77 percent was realized. Twelve trailing months earnings per share reached a value of $3.58. Last fiscal year, the company paid $2.42 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.80, the P/S ratio is 1.53 and the P/B ratio is finally 1.57. The dividend yield amounts to 3.86 percent and the beta ratio has a value of 0.18.

Take a closer look at the full list of the cheapest utility dividend stocks. The average P/E ratio amounts to 19.54 and forward P/E ratio is 14.67. The dividend yield has a value of 3.22 percent. Price to book ratio is 1.80 and price to sales ratio 1.64. The operating margin amounts to 18.07 percent and the beta ratio is 0.49. Stocks from the list have an average debt to equity ratio of 1.45.

Related stock ticker symbols:

HNP, AES, ENI, EOC, EIX, ETR, FE, NGG, PPL, PEG, PCG, AEP, NEE, EXC, XEL, DUK, SO, ED, NU, DTE

Selected Articles:

· 20 Of The Safest Utilities With Best Dividend Yields

· 13 Highest Dividend Paying Diversified Utilities

· 12 Best Yielding Utilities With Double-Digit EPS Growth Potential

· 20 Stocks To Buy | The Most Recommended Utilities At The Market



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Utility dividend stocks with low forward P/E ratios was originally published at long-term-investments.blogspot.com.