7/24/2013

15 Stocks From The S&P 500 With Single P/E Ratios

Stocks from the S&P 500 with P/E’s below 10 originally published at long-term-investments.blogspot.com. It’s too easy to say that stocks with a low price-to-earnings ratio are cheap but the figure tells you a lot about the valuation of a company on the first view. 

Stocks with a low valuation are also rare. For instance, the popular S&P 500 index has only 28 members with a P/E below 10. Around 80 percent of them, in total 23, pay dividends. Current P/E’s are great but it’s always good to look at the forward P/E because it uses the future earnings of the company.

Only 16 companies from the S&P 500 have both, a current P/E and forward P/E of less than 10. If you buy those stocks you purchase them for a net income yield of 10 percent. That’s a good value in my view if the business works robust and grows with a pace of 5 to 10 percent yearly. You can find a full list of the 15 dividend paying stocks with a single P/E below. Insurer and oil & gas refining & marketing companies are mostly represented on the screen.


Here are my favorite stocks:
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AFLAC (NYSE:AFL) has a market capitalization of $28.39 billion. The company employs 8,673 people, generates revenue of $25.364 billion and has a net income of $2.866 billion. AFLAC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.747 billion. The EBITDA margin is 22.66 percent (the operating margin is 16.96 percent and the net profit margin 11.30 percent).


Financial Analysis: The total debt represents 3.32 percent of AFLAC’s assets and the total debt in relation to the equity amounts to 27.24 percent. Due to the financial situation, a return on equity of 19.82 percent was realized by AFLAC. Twelve trailing months earnings per share reached a value of $6.33. Last fiscal year, AFLAC paid $1.34 in the form of dividends to shareholders. Forward P/E: 9.34.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.62, the P/S ratio is 1.10 and the P/B ratio is finally 1.75. The dividend yield amounts to 2.34 percent and the beta ratio has a value of 1.89.


Long-Term Stock Price Chart Of AFLAC (AFL)
Long-Term Dividend Payment History of AFLAC (AFL)
Long-Term Dividend Yield History of AFLAC (AFL)

Phillips 66 (NYSE:PSX) has a market capitalization of $36.44 billion. The company employs 12,400 people, generates revenue of $182.922 billion and has a net income of $4.131 billion. Phillips 66’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.939 billion. The EBITDA margin is 4.89 percent (the operating margin is 3.63 percent and the net profit margin 2.26 percent).

Financial Analysis: The total debt represents 14.51 percent of Phillips 66’s assets and the total debt in relation to the equity amounts to 33.57 percent. Due to the financial situation, a return on equity of 18.72 percent was realized by Phillips 66. Twelve trailing months earnings per share reached a value of $7.71. Last fiscal year, Phillips 66 paid $0.45 in the form of dividends to shareholders. Forward P/E: 8.21.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.64, the P/S ratio is 0.20 and the P/B ratio is finally 1.79. The dividend yield amounts to 2.10 percent and the beta ratio is not calculable.


Long-Term Stock Price Chart Of Phillips 66 (PSX)
Long-Term Dividend Payment History of Phillips 66 (PSX)
Long-Term Dividend Yield History of Phillips 66 (PSX)

Marathon Petroleum (NYSE:MPC) has a market capitalization of $22.86 billion. The company employs 25,985 people, generates revenue of $82.492 billion and has a net income of $3.393 billion. Marathon Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.106 billion. The EBITDA margin is 7.40 percent (the operating margin is 6.48 percent and the net profit margin 4.11 percent).

Financial Analysis: The total debt represents 12.35 percent of Marathon Petroleum’s assets and the total debt in relation to the equity amounts to 28.74 percent. Due to the financial situation, a return on equity of 31.92 percent was realized by Marathon Petroleum. Twelve trailing months earnings per share reached a value of $10.39. Last fiscal year, Marathon Petroleum paid $1.20 in the form of dividends to shareholders. Forward P/E: 7.28.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.77, the P/S ratio is 0.28 and the P/B ratio is finally 2.04. The dividend yield amounts to 1.95 percent and the beta ratio is not calculable.


Long-Term Stock Price Chart Of Marathon Petroleum (MPC)
Long-Term Dividend Payment History of Marathon Petroleum (MPC)
Long-Term Dividend Yield History of Marathon Petroleum (MPC)

Lincoln National (NYSE:LNC) has a market capitalization of $11.09 billion. The company employs 8,700 people, generates revenue of $11.532 billion and has a net income of $1.286 billion. Lincoln National’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.865 billion. The EBITDA margin is 16.17 percent (the operating margin is 13.60 percent and the net profit margin 11.15 percent).

Financial Analysis: The total debt represents 2.58 percent of Lincoln National’s assets and the total debt in relation to the equity amounts to 37.66 percent. Due to the financial situation, a return on equity of 9.16 percent was realized by Lincoln National. Twelve trailing months earnings per share reached a value of $4.53. Last fiscal year, Lincoln National paid $0.36 in the form of dividends to shareholders. Forward P/E: 8.28.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.13, the P/S ratio is 0.97 and the P/B ratio is finally 0.75. The dividend yield amounts to 1.16 percent and the beta ratio has a value of 2.72.


Long-Term Stock Price Chart Of Lincoln National (LNC)
Long-Term Dividend Payment History of Lincoln National (LNC)
Long-Term Dividend Yield History of Lincoln National (LNC)

Take a closer look at the full list of the cheapest stocks from the S&P 500. The average P/E ratio amounts to 8.29 and forward P/E ratio is 8.31. The dividend yield has a value of 2.33 percent. Price to book ratio is 4.39 and price to sales ratio 1.09. The operating margin amounts to 21.46 percent and the beta ratio is 1.72. Stocks from the list have an average debt to equity ratio of 6.53, excluded by Pitney Bowes: 3.02.

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

The cheapest stocks from the S&P 500 (Click to enlarge)

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Related Stock Ticker Symbols:
PBI, FCX, STX, JPM, SLM, VLO, AFL, PSX, MPC, UNM, TSO, WDC, JOY, LNC, CF

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*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.


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