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

These companies could be value opportunities

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Sep 14, 2022
Summary
  • Meta Platforms Inc., Comcast Corp, Petroleo Brasileiro SA Petrobras and Warner Bros. Discovery Inc. have low trailing 12-month price-to-free-cash-flow ratios.
  • Wall Street issued positive recommendation ratings for these companies.
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To increase your chances of discovering value opportunities, one method is to screen the market for stocks with lower trailing 12-month price-to-free-cash-flow ratios than that of the S&P 500, which stands at around 12.3 as of the time of writing.

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

Meta Platforms Inc.

The first stock investors could be interested in is Meta Platforms Inc. (

META, Financial), a Menlo Park, California-based operator of social media platforms like Facebook, Instagram and WhatsApp.

Meta Platforms Inc.’s price-to-free-cash-flow ratio was about 11.94 as of Sept. 14, ranking better than 63.09% of 298 companies that operate in the interactive media industry.

The free cash flow per share for the trailing 12 months ended June 30 stood at $12.83.

Following a 59.05% decrease over the past year, the stock closed at $153.13 per share on Tuesday for a market capitalization of $411.54 billion and a 52-week range of $152.67 to $377.56.

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Currently, Meta Platforms Inc. doesn’t pay dividends.

On Wall Street, Meta Platforms Inc.’s stock has a median recommendation rating of overweight with an average target price of approximately $216.67 per share.

Comcast Corp

The second stock investors could be interested in is Comcast Corp. (

CMCSA, Financial), a Philadelphia-based global media and telecommunications company.

Comcast Corp.’s price-to-free-cash-flow ratio was 10.25 as of Sept. 14, ranking better than 56.64% of the 256 companies that operate in the telecommunication services industry.

The company's free cash flow per share for the trailing 12 months ended June 30 was $3.26.

Following a 41.30% decrease that occurred over the past year, the stock was trading at $33.46 per share at close on Tuesday for a market capitalization of $147.67 billion and a 52-week range of $33.41 to $60.84.

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The company currently pays quarterly cash dividends of 27 cents per common share, with the next due on Oct. 26. The stock grants a trailing 12-month dividend yield of 3.11% and a forward dividend yield of 3.23% as of this writing.

On Wall Street, Comcast Corp.’s stock has a median recommendation rating of overweight with an average target price of $47.37per share.

Petroleo Brasileiro SA

The third stock investors could be interested in is Petroleo Brasileiro SA (

PBR, Financial), aka Petrobras, a Brazilian integrated oil and gas operator.

Petrobras’ price-to-free-cash-flow ratio was about 2.32 as of Sept. 14, ranking better than 89.19% of 555 companies that operate in the oil and gas industry.

The company's free cash flow per share for the trailing 12 months ended June 30 was $5.71.

The stock price has increased by 28.79% over the past year to close Tuesday at $13.24 per share for a market cap of $83.74 billion and a 52-week range of $9.20 to $16.29.

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Currently, Petrobras pays dividends. It has a trailing 12-month dividend yield of 47.58% and a forward dividend yield of 52.21% as of this writing.

On Wall Street, Petrobras’ stock has a median recommendation rating of overweight and an average target price of $16.59 per share.

Warner Bros.Discovery Inc.

The fourth stock investors could be interested in is Warner Bros. Discovery Inc. (

WBD, Financial), a New York-based media provider of content across various distribution platforms in approximately 50 different languages worldwide.

Warner Bros. Discovery Inc.’s price-to-free-cash-flow ratio was about 4.39 as of Sept. 14, ranking better than 86.57% of 603 companies that operate in the media-diversified industry.

The company's free cash flow per share for the trailing 12 months ended June 30 was $2.95.

The stock price has decreased by 51.70% over the past year to close Tuesday at $12.95 per share for a market cap of $31.44 billion and a 52-week range of $12.23 to $31.55.

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Warner Bros. Discovery Inc. does not pay dividends.

On Wall Street, Warner Bros. Discovery Inc’s stock has a median recommendation rating of overweight and an average target price of $23.67 per share.

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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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