Cheapest Large Caps with Highest Expected Growth as of May 2012

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May 23, 2012
Here is a current sheet of America’s cheapest large caps with the highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD10 billion and earnings per share are expected to grow for at least 20 percent. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S ratio of less than 2. Twenty-five companies fulfilled the mentioned criteria of which twenty-one companies pay dividends and the same number of stocks has a buy or better recommendation.


The best yielding stock is the Argentinean bank Banco Bilbao (BBVA, Financial) with a yield of 8.93 percent. The company is followed by the oil and gas pipeline operator Energy Transfer Partners (ETP, Financial) and the gas utility National Grid (NGG, Financial).


Here is the table with some fundamentals:


Time Warner Cable (TWC, Financial) has a market capitalization of $23.80 billion. The company employs 47,300 people, generates revenues of $19,675.00 million and has a net income of $1,667.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,096.00 million. Because of these figures, the EBITDA margin is 36.07 percent (operating margin 20.68 percent and the net profit margin finally 8.47 percent).


Financial Analysis: The total debt representing 55.39 percent of the company’s assets and the total debt in relation to the equity amounts to 355.14 percent. Due to the financial situation, a return on equity of 19.76 percent was realized. Twelve trailing months earnings per share reached a value of $5.23. Last fiscal year, the company paid $1.92 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.57, P/S ratio 1.22 and P/B ratio 3.20. Dividend Yield: 2.93 percent. The beta ratio is 0.74.


United Technologies (UTX) has a market capitalization of $67.39 billion. The company employs 199,900 people, generates revenues of $58,190.00 million and has a net income of $5,374.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,387.00 million. Because of these figures, the EBITDA margin is 16.13 percent (operating margin 13.92 percent and the net profit margin finally 9.24 percent).


Financial Analysis: The total debt representing 16.70 percent of the company’s assets and the total debt in relation to the equity amounts to 46.89 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.70. Last fiscal year, the company paid $1.86 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.97, P/S ratio 1.15 and P/B ratio 3.06. Dividend Yield: 2.61 percent. The beta ratio is 1.05.


Johnson Controls (JCI) has a market capitalization of $20.65 billion. The company employs 162,000 people, generates revenues of $40,833.00 million and has a net income of $1,741.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,718.00 million. Because of these figures, the EBITDA margin is 6.66 percent (operating margin 5.17 percent and the net profit margin finally 4.26 percent).


Financial Analysis: The total debt representing 17.34 percent of the company’s assets and the total debt in relation to the equity amounts to 46.60 percent. Due to the financial situation, a return on equity of 15.38 percent was realized. Twelve trailing months earnings per share reached a value of $2.42. Last fiscal year, the company paid $0.64 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.53, P/S ratio 0.51 and P/B ratio 1.87. Dividend Yield: 2.37 percent. The beta ratio is 1.83.


News Corp (NWSA) has a market capitalization of $47.32 billion. The company employs 51,000 people, generates revenues of $33,405.00 million and has a net income of $3,148.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,700.00 million. Because of these figures, the EBITDA margin is 17.06 percent (operating margin 12.50 percent and the net profit margin finally 9.42 percent).


Financial Analysis: The total debt representing 25.00 percent of the company’s assets and the total debt in relation to the equity amounts to 52.51 percent. Due to the financial situation, a return on equity of 10.96 percent was realized. Twelve trailing months earnings per share reached a value of $1.40. Last fiscal year, the company paid $0.15 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.00, P/S ratio 1.42 and P/B ratio 1.74. Dividend Yield: 0.87 percent. The beta ratio is 1.46.


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 10.13 while the forward P/E ratio is 8.03. P/S ratio is 0.93 and P/B ratio 1.82. The expected earnings growth for next year amounts to 32.04 and 15.56 percent for the upcoming five years.


Related stock ticker symbols:

BBVA, ETP, NGG, NUE, FCX, STX, IP, AMAT, BCS, TWC, MRO, GGB, VLO, DB, UTX, BA, JCI, CHA, BHI, UBS, NWSA, MITSY, GM, ING, DTV


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