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4 Profitable Companies With Solid Financial Conditions

These companies have good financial strength and profitability ratings

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May 27, 2022
Summary
  • Intel Corp, Texas Instruments Inc, Intuitive Surgical Inc. and Regeneron Pharmaceuticals Inc. run profitable businesses with strong balance sheets.
  • Wall Street likes these business and has issued positive ratings for them.
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When screening the market for value opportunities, investors may want to consider stocks that represent companies with high profitability and robust financial conditions. The companies below meet these criteria, according to their GuruFocus profitability and financial strength ratings of at least 6 out of 10. Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for these stocks.

Intel Corp

The first stock that makes the cut is Intel Corp. (

INTC, Financial), a Santa Clara, California-based semiconductor company.

GuruFocus rated its financial strength 7 out of 10, driven by a return on invested capital of 14.92% versus a weighted average cost of capital of 5.47%.

GuruFocus rated its profitability 9 out of 10, driven by a net income margin rate of 31.68% versus the industry median of 9.74%.

The share price ($43.48 as of May 26) has declined 23.88% over the past year for a market capitalization of $177.79 billion, a price-earnings ratio of 7.22 and a price-book ratio of 1.72.

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The price-sales ratio is 2.29 and the 52-week range is $40.31 to $58.41.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of $50.98 per share.

Texas Instruments Inc.

The second stock that qualifies is Texas Instruments Inc. (

TXN, Financial), a Dallas, Texas-based provider of semiconductors to electronics designers and manufacturers worldwide.

GuruFocus rated its financial strength at 8 out of 10, driven by an Altman Z-Score of 13.72, indicating the company is in the safe zone.

GuruFocus rated its profitability 10 out of 10, driven by a return on capital ratio of 152.75% versus the industry median of 21.59%.

The share price ($174.13 as of May 26) was down 8.27% year-over-year for a market capitalization of $160.57 billion, a price-earnings ratio of 19.92 and a price-book ratio of 11.45.

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The price-sales ratio is 8.57 and the 52-week range is $160.50 to $202.26.

On Wall Street, the stock has a median recommendation rating of hold and an average target price of approximately $190.15 per share.

Intuitive Surgical Inc.

The third stock that qualifies is Intuitive Surgical Inc. (

ISRG, Financial), the Sunnyvale, California-based designer, manufacturer and marketer of the da Vinci surgical system and other medical instruments and accessories.

GuruFocus rated its financial strength 10 out of 10, driven by an Altman Z-Score of 33.85, which suggests the balance sheet is solid.

The company's profitability rating scored 10 out of 10, driven by an operating margin of 30.69% versus the industry median of 2.86%.

The share price ($223.30 as of May 26) has dropped 19.38% over the past year for a market capitalization of $81.24 billion, a price-earnings ratio of 50.33 and a price-book ratio of 6.71.

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The price-sales ratio is 14.05 and the 52-week range is $206.60 to $369.69.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $326.12 per share.

Regeneron Pharmaceuticals Inc.

The final stock that qualifies is Regeneron Pharmaceuticals Inc. (

REGN, Financial), a New York-based biopharmaceutical company that engages in the discovery, development and production of drugs for the treatment of several medical conditions.

GuruFocus rated its financial strength at 9 out of 10, driven by an Altman Z-Score of 10.35, indicating the company is in safe zones.

GuruFocus rated its profitability at 10 out of 10, driven by a return on capital ratio of 109.76% (versus the industry median of -503.39%).

The share price ($683.44 as of May 26) was up 36.25% year-over-year for a market capitalization of $74.99 billion, a price-earnings ratio of 9.67 and a price-book ratio of 3.77.

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The price-sales ratio is 4.66 and the 52-week range is $492.13 to $747.42.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of approximately $695.25 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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