Cheapest Large Caps with Highest Expected Growth as of October 2012

Author's Avatar
Oct 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 and P/B ratio of less than 2. Twelve companies fulfilled the mentioned criteria of which nine companies have a buy or better recommendation. Nine of the results pay dividends.

The best yielding stock is still Energy Transfer Partners (ETP, Financial) with a yield of 8.48 percent, a little higher as of the previous month. The dividend stock is followed by China Petroleum & Chemical (SNP, Financial) with a yield of 4.43 percent and LM Ericsson Telephone (ERIC, Financial) whose dividend yield exceeds 4.06 percent.

Here is the table with some fundamentals:

Energy Transfer Partners (ETP) has a market capitalization of $10.35 billion. The company employs 1,946 people, generates revenue of $6,850.44 million and has a net income of $697.16 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.67 billion. The EBITDA margin is 24.37 percent (operating margin 18.09 percent and net profit margin 10.18 percent).

Financial Analysis: The total debt represents 50.34 percent of the company's assets and the total debt in relation to the equity amounts to 136.54 percent. Due to the financial situation, a return on equity of 4.53 percent was realized. Twelve trailing months earnings per share reached a value of $4.58. Last fiscal year, the company paid $3.58 in form of dividends to shareholders. The earnings are expected to grow by 45.80 percent for the next year and 16.13 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.20, P/S ratio 1.51 and P/B ratio 1.72. Dividend Yield: 8.46 percent. The beta ratio is 0.66.

Prudential Financial (PRU) has a market capitalization of $27.07 billion. The company employs 50,104 people, generates revenue of $49.01 billion and has a net income of $3.52 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.41 billion. The EBITDA margin is 11.02 percent (operating margin 10.43 percent and net profit margin 7.17 percent).

Financial Analysis: The total debt represents 4.32 percent of the company's assets and the total debt in relation to the equity amounts to 72.42 percent. Due to the financial situation, a return on equity of 10.29 percent was realized. Twelve trailing months earnings per share reached a value of $7.03. Last fiscal year, the company paid $1.45 in form of dividends to shareholders. The earnings are expected to grow by 24.56 percent for the next year and 12.29 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.27, P/S ratio 0.55 and P/B ratio 0.73. Dividend Yield: 2.50 percent. The beta ratio is 2.36.

Marathon Oil (MRO) has a market capitalization of $21.21 billion. The company employs 3,322 people, generates revenue of $15.28 billion and has a net income of $1.71 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.80 billion. The EBITDA margin is 44.50 percent (operating margin 29.67 percent and net profit margin 11.17 percent).

Financial Analysis: The total debt represents 15.35 percent of the company's assets and the total debt in relation to the equity amounts to 28.07 percent. Due to the financial situation, a return on equity of 8.34 percent was realized. Twelve trailing months earnings per share reached a value of $2.49. Last fiscal year, the company paid $0.80 in form of dividends to shareholders. The earnings are expected to grow by 23.51 percent for the next year and 2.78 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.11, P/S ratio 1.39 and P/B ratio 1.24. Dividend Yield: 2.26 percent. The beta ratio is 1.29.

Tyco International (TYC) has a market capitalization of $12.60 billion. The company employs 100,000 people, generates revenue of $17.36 billion and has a net income of $1.57 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.44 billion. The EBITDA margin is 19.80 percent (operating margin 12.21 percent and net profit margin 9.03 percent).

Financial Analysis: The total debt represents 15.49 percent of the company's assets and the total debt in relation to the equity amounts to 29.25 percent. Due to the financial situation, a return on equity of 11.07 percent was realized. Twelve trailing months earnings per share reached a value of $2.79. Last fiscal year, the company paid $0.99 in form of dividends to shareholders. The earnings are expected to grow by 21.43 percent for the next year and 13.53 percent for the upcoming five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.81, P/S ratio 0.73 and P/B ratio 0.90. Dividend Yield: 2.19 percent. The beta ratio is 1.13.

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 10.20 while the forward P/E ratio is 10.71. P/S ratio is 0.78 and P/B ratio 1.06. The expected earnings growth for next year amounts to 43.59 and 12.56 percent for the upcoming five years.

Related stock ticker symbols:

ETP, SNP, ERIC, PRU, MRO, TYC, DB, CHK, FDX, GM, MITSY, PKX

Selected Articles:

· 8 Cheap Dividend Stocks That Crossed New 52-Week Highs

· 11 Higher Capitalized Dividend Stocks For Less Than $5

· 12 Dividend Contenders Below Book Value

· Best Dividend Paying Stock List As Of October 2012

· 18 Dividend Stocks Near One-Year Lows

Cheapest Large Capitalized Stocks with Highest Earnings Per Share Growth by Dividend Yield - Stock, Capital, Investment.