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1/23/2013

Cheapest Dividend Paying Large Caps As of January 2013 | High Growth At Low Price

Cheapest large capitalized stocks with highest earnings per share growth; originally published at “long-term-investments.blogspot.com. Growth at cheap price ratios is one the keys for a sucessful long-term investment.

A cheap stock is the basis for every future returns. Beside cheap fundamentals and pricing ratios of a company, the expected growth is an additional important item for investors. After the ongoing turbulences due to the euro debt crises and the fiscal cliff in America, there should be some bargains in relation to growth right now.

I made a screen of America’s cheapest large capitalized stocks with highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD 10 billion and earnings per share are expected to grow for at least 15 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 two. Eleven companies fulfilled the mentioned criteria of which ten companies have a buy or better recommendation. Nine of the results pay dividends.

Here are my favorites:
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The Travelers Companies (NYSE:TRV) has a market capitalization of $29.73 billion. The company employs 30,000 people, generates revenue of $25.446 billion and has a net income of $1.426 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.416 billion. The EBITDA margin is 25.21 percent (the operating margin is 5.31 percent and the net profit margin 5.60 percent).

Financial Analysis: The total debt represents 6.31 percent of the company’s assets and the total debt in relation to the equity amounts to 26.98 percent. Due to the financial situation, a return on equity of 5.67 percent was realized. Twelve trailing months earnings per share reached a value of $7.00. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.13, the P/S ratio is 1.14 and the P/B ratio is finally 1.22. The dividend yield amounts to 2.41 percent and the beta ratio has a value of 0.67.


”Long-Term
Long-Term Stock History Chart Of The Travelers Companies (TRV)
”Long-Term
Long-Term Dividends History of The Travelers Companies (TRV)
”Long-Term
Long-Term Dividend Yield History of The Travelers Companies (TRV)

The Allstate Corporation (NYSE:ALL) has a market capitalization of $18.49 billion. The company employs 37,000 people, generates revenue of $32.654 billion and has a net income of $788.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.309 billion. The EBITDA margin is 28.51 percent (the operating margin is 2.99 percent and the net profit margin 2.41 percent).

Financial Analysis: The total debt represents 4.71 percent of the company’s assets and the total debt in relation to the equity amounts to 31.64 percent. Due to the financial situation, a return on equity of 4.18 percent was realized. Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, the company paid $0.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.36, the P/S ratio is 0.64 and the P/B ratio is finally 1.16. The dividend yield amounts to 2.04 percent and the beta ratio has a value of 1.48.


”Long-Term
Long-Term Stock History Chart Of The Allstate Corporation (ALL)
”Long-Term
Long-Term Dividends History of The Allstate Corporation (ALL)
”Long-Term
Long-Term Dividend Yield History of The Allstate Corporation (ALL)

Bunge Limited (NYSE:BG) has a market capitalization of $11.40 billion. The company employs 35,000 people, generates revenue of $58.743 billion and has a net income of $896.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.685 billion. The EBITDA margin is 2.87 percent (the operating margin is 1.60 percent and the net profit margin 1.53 percent).

Financial Analysis: The total debt represents 17.53 percent of the company’s assets and the total debt in relation to the equity amounts to 34.86 percent. Due to the financial situation, a return on equity of 8.05 percent was realized. Twelve trailing months earnings per share reached a value of $5.87. Last fiscal year, the company paid $0.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.30, the P/S ratio is 0.19 and the P/B ratio is finally 1.02. The dividend yield amounts to 1.40 percent and the beta ratio has a value of 1.22.


”Long-Term
Long-Term Stock History Chart Of Bunge Limited (BG)
”Long-Term
Long-Term Dividends History of Bunge Limited (BG)
”Long-Term
Long-Term Dividend Yield History of Bunge Limited (BG)

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 11.87 while the forward P/E ratio is 9.63. P/S ratio is 1.02 and P/B ratio 1.16. The expected earnings growth for next year amounts to 32.28 and 6.42 percent for the upcoming five years.

Here is the full table with some fundamentals (TTM):

Cheapest Large Capitalized Stocks (Click to enlarge)


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Related stock ticker symbols:
SNP, FCX, TRV, MRO, CB, ALL, DB, BG, PBR-A

Selected Articles:

* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.




3 comments:

  1. Anonymous1/23/2013

    Some well known large cap stocks have been hit very hard the past couple months. This has created some potential buying opportunities. The stocks below are trading at valuations that appear to be a major buying opportunity for any long-term investor.

    Some of these stocks fell on earnings disappointments, analyst downgrades, competitive concerns or lowered guidance. Often these are short-term events, so these situations and low prices often provide the best buying opportunities.

    While many investors are now climbing over themselves to buy overvalued oil stocks at 20 to 25 times earnings, I am taking profits in the oil sector and investing some of the proceeds in these great American companies at bargain prices.

    By comparison, these names are trading at 7 to 12 times earnings and are likely to hold up well in the next period of market turmoil.

    ReplyDelete
  2. All of the following stocks are great buys. I think that VZ and T also look undervalued at the moment. Both stocks have great yields.

    ReplyDelete
  3. I think I'll check out these suggestions; it's about time I diversify my portfolio once again.

    ReplyDelete

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