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4 Stocks Trading With Low Price-to-Free-Cash-Flow Ratios

These companies could be value opportunities

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Alberto Abaterusso
Oct 03, 2021

Summary

  • UnitedHealth Group Inc, British American Tobacco PLC, Honda Motor Co Ltd and Constellation Brands Inc have low trailing 12-month price-to-free cash flow ratios.
  • Wall Street recommended positive ratings for these companies.
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If you want to increase your likelihood to discover value opportunities, one method is to look for stocks with trailing 12-month price-to-free-cash-flow ratios lower than that of the S&P Global Index, which stands at around 29.09.

Therefore, investors could be interested in the following stocks, as they meet the above criteria and are recommended by sell-side analysts on Wall Street.

UnitedHealth Group Inc

The first stock investors could be interested in is UnitedHealth Group Inc (

UNH, Financial), a Minnetonka, Minnesota-based diversified healthcare company.

UnitedHealth Group Inc’s price-to-free-cash-flow ratio is about 20.32 as of Oct. 1, ranking higher than eight out of 18 companies that operate in the healthcare plans industry.

The free cash flow per share for the trailing 12 months ended in June 2021 stood at $19.31.

Due to a 23.35% increase that took place over the past year, the stock traded at $392.43 per share at close on Friday for a market capitalization of $370.03 billion and a 52-week range of $299.60 to $431.36.

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UnitedHealth Group pays dividends in the amount of $1.45 cents per share every quarter. The last payment was made on Sept. 21.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of approximately $467.38 per share.

British American Tobacco PLC

The second stock investors could be interested in is British American Tobacco PLC (

BTI, Financial), a London, United Kingdom-based tobacco giant.

British American Tobacco PLC's price-to-free-cash-flow ratio is 6.59 as of Oct. 1, ranking higher than 80% of the 30 companies that operate in the tobacco products industry.

The company's free cash flow per share for the trailing 12 months ended in June 2021 was $5.29.

Due to a 4% decline that happened over the past year, the stock was trading at $34.85 per share at close on Friday for a market capitalization of $79.97 billion and a 52-week range of $31.60 to $41.14.

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British American Tobacco PLC pays dividends in the amount of $0.746 per share every quarter. The next payment will be made on Nov. 16.

On Wall Street, the stock has one recommendation rating of buy with a target price of $50.12 per share.

Honda Motor Co Ltd

The third stock investors could be interested in is Honda Motor Co Ltd (

HMC, Financial), a Japanese automaker.

Honda Motor Co Ltd's price-to-free-cash-flow ratio is 9.04 as of Oct. 1, ranking higher than 59% of 763 companies that operate in the vehicles and parts industry.

The company's free cash flow per share for the trailing 12 months ended in June 2021 was $3.39.

Due to a 25.63% increase that happened over the past year, the stock was trading at $30.68 per share at close on Friday for a market capitalization of $53.05 billion and a 52-week range of $23.23 to $33.42.

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Honda Motor Co Ltd pays dividends in the amount of $0.492 per share every quarter. The last payment was made on June 14.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $38.82 per share.

Constellation Brands Inc

The fourth stock investors could be interested in is Constellation Brands Inc (

STZ, Financial), a Victor, New York-based producer, trader and distributor of beverages, alcohol and spirits in North and Central America as well as in Italy and New Zealand.

Constellation Brands Inc's price-to-free-cash-flow ratio is 21.50 as of Oct. 1, ranking higher than 49% of 142 companies that operate in the beverages - alcoholic industry.

The company's free cash flow per share for the trailing 12 months ended in May 2021 was $9.93.

Due to a 16.3% increase that took place over the past year, the stock was trading at $213.48 per share at close on Friday for a market capitalization of $40.98 billion and a 52-week range of $160.63 to $244.75.

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Constellation Brands Inc pays dividends in the amount of $0.760 per share every quarter. The last payment was made on Aug. 24.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $264.18 per share.

Disclosure: I have no positions in any security mentioned.

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I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
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