Shares of Marsh & McLennan Companies, Inc. (MMC, Financial), PPG Industries, Inc. (PPG, Financial) and Vestas Wind Systems A/S (VWSYF, Financial) performed very well so far this year and over the past several years, topping the overall US stock market in at least 2 out of the 4 observed periods.
The S&P 500 index, which is the benchmark for the market, was observed to rise by 5% in the last three months, by 23% year to date, by 10% in the past 52 weeks and by 42.5% in the last 3 years through Nov. 7.
Marsh & McLennan, PPG Industries and Vestas Wind Systems are expected to continue to trade higher as their profitable businesses will likely remain so for the upcoming years. GuruFocus ranks these three companies’ ability to generate income, which is the main catalyst to the share price, with a high score of at least 7 out of 10. Furthermore, analysts’ positive recommendation ratings for these stocks range between hold and overweight.
Marsh & McLennan Companies
Shares of Marsh & McLennan Companies, Inc. have gained 4% in the past three months, 29.4% so far this year, 17.6% over the last 52 weeks and 54.2% over the past three years through Nov. 7.
The New York-based insurance broker paid quarterly dividends over the observed periods. The last quarterly dividend of 45.5 cents per common share was sent out to its shareholders on Aug. 15, resulting in a 1.67% trailing 12-month dividend yield based on Thursday’s closing price of $103.19 for a market cap of $52.08 billion. The next quarterly payment will happen on Nov. 15.
GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a very high 8 out of 10 rating for its profitability.
Marsh & McLennan has a net profit margin of 9.34% versus the industry median of 6.17%. The company’s net margin is ranked higher than 298 out of a total of 452 companies operating in the Insurance industry.
The stock has a price-earnings ratio of 35.1, a price-sales ratio of 3.27 and a price-book ratio of 6.92. These ratios, along with below Peter Lynch chart, suggest the stock is not cheap.
Sell-side analysts issued a hold recommendation rating with an average target price of $106.07 per share.
PPG Industries
Shares of PPG Industries, Inc. have gained 12.6% in the past three months, 27% year to date, 20.54% over the last 52 weeks and 36.3% over the past three years through Nov. 7.
The Pittsburgh, Pennsylvania-based global specialty chemicals company also paid quarterly dividends over the periods in question. Currently, the trailing 12-month dividend yield is 1.5% based on Thursday’s closing price of $129.83 for a market capitalization of $30.7 billion. The company made the last quarterly payment of 51 cents per common share on Sept. 12. The next quarterly dividend of the same amount will be paid on Dec. 12.
GuruFocus rated the company's financial strength with a positive score of 5 out of 10 and its profitability with a high score of 8 out of 10.
PPG Industries has a net profit margin of 8%, which is above the industry median of 4.77%. The company's net profit margin is ranked higher than 856 out of a total of 1,269 competitors operating in the Chemicals industry.
The stock has a price-earnings ratio of 25.61, a price-sales ratio of 2.05 and a price-book ratio of 5.9. The stock is not cheap, also according to the Peter Lynch chart.
Sell-side analysts issued an overweight recommendation rating with an average target price of $130.88 per share.
Vestas Wind Systems
Shares of Vestas Wind Systems A/S have climbed 7.6% in the last three months, 17.5% year to date, 19.7% over the last 52 weeks and 38.5% over the past three years through Nov. 7.
The Danish manufacturer of wind turbines worldwide paid annual dividends over these several years. Currently, Vestas Wind Systems pays an annual cash dividend of 7.44 Danish Krones (about $1.1 USD) per common share, producing a trailing 12-month dividend yield of 1.26% based on Thursday’s closing price of $80.60 per share for a market capitalization of $17.6 billion. The last payment occurred on April 8 earlier this year.
GuruFocus assigned a positive rating of 6 out of 10 for the company's financial strength and a high 7 out of 10 rating for its profitability.
The company has a net profit margin of 5.11% versus the industry median of 4.31%. The company's net profit margin is ranked higher than 1,326 out of a total of 2,417 competitors that operate in the Industrial Products industry.
The stock’s price-earnings ratio of 30.68, price-sales ratio of 1.55 and price-book ratio of 5.32 indicate the share price is not cheap. The Peter Lynch chart has the same advice.
Sell-side analysts issued an overweight recommendation rating with an average target price of $91.75 per share.
Disclosure: I have no positions in any securities mentioned.
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