2/09/2012

14 Basic Material Stocks With Strongest Earnings Forecasts And Good Dividends

The Best Yielding Basic Material Stocks With Highest Expected Growth Researched by Dividend Yield - Stock, Capital, Investment. Basic materials are the source of all products. They are necessary for economic growth and wealth. Normally, the valuation of a company from the sector depends on the price developments from the underlying commodities. In times of economic slowdowns, there are overcapacities and pricing pressure. Otherwise in booming times. Commodity stocks are highly scalable companies.

I screened the sector by stocks with the highest earnings per share growth for the upcoming five years (at least 15 percent yearly). In addition, the company should pay today more than 3 percent in cash dividends. 14 stocks fulfilled my criteria of which 6 are high yields. Twelve stocks have a buy or better recommendation.

Here are my favorite stocks:
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Energy Transfer Partners (NYSE:ETP) has a market capitalization of $9.74 billion. The company employs 5,433 people, generates revenues of $5,884.83 million and has a net income of $617.22 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,348.56 million. Because of these figures, the EBITDA margin is 22.92 percent (operating margin 17.09 percent and the net profit margin finally 10.49 percent).


Financial Analysis:
The total debt representing 53.01 percent of the company’s assets and the total debt in relation to the equity amounts to 135.77 percent. Due to the financial situation, a return on equity of 5.01 percent was realized. Twelve trailing months earnings per share reached a value of $1.35. Last fiscal year, the company paid $3.58 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 34.44, Price/Sales 1.84 and Price/Book ratio 1.98. Dividend Yield: 7.63 percent. The beta ratio is 0.66.


Long-Term Stock History Chart Of Energy Transfer Partne... (Click to enlarge)


Long-Term Dividends History of Energy Transfer Partne... (ETP) (Click to enlarge)


Long-Term Dividend Yield History of Energy Transfer Partne... (NYSE: ETP) (Click to enlarge)


Enterprise Products Partners (NYSE:EPD) has a market capitalization of $43.95 billion. The company employs 5,070 people, generates revenues of $44,313.00 million and has a net income of $2,088.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,819.70 million. Because of these figures, the EBITDA margin is 8.62 percent (operating margin 6.45 percent and the net profit margin finally 4.71 percent).


Financial Analysis:
The total debt representing percent of the company’s assets and the total debt in relation to the equity amounts to percent. Due to the financial situation, a return on equity of percent was realized. Twelve trailing months earnings per share reached a value of $2.37. Last fiscal year, the company paid $2.48 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 21.06, Price/Sales 1.00 and Price/Book ratio is not calculable. Dividend Yield: 4.97 percent. The beta ratio is 0.59.


Long-Term Stock History Chart Of Enterprise Products Pa... (Click to enlarge)


Long-Term Dividends History of Enterprise Products Pa... (EPD) (Click to enlarge)


Long-Term Dividend Yield History of Enterprise Products Pa... (NYSE: EPD) (Click to enlarge)


Kinder Morgan (NYSE:KMI) has a market capitalization of $26.42 billion. The company employs 8,142 people, generates revenues of $8,190.60 million and has a net income of $300.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,409.10 million. Because of these figures, the EBITDA margin is 29.41 percent (operating margin 15.64 percent and the net profit margin finally 3.67 percent).


Financial Analysis:
The total debt representing 54.87 percent of the company’s assets and the total debt in relation to the equity amounts to 461.18 percent. Due to the financial situation, a return on equity of -1.07 percent was realized. Twelve trailing months earnings per share reached a value of $0.71. Last fiscal year, the company paid $0.74 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 45.95, Price/Sales 2.77 and Price/Book ratio 6.59. Dividend Yield: 3.87 percent. The beta ratio is not calculable.


Long-Term Stock History Chart Of Kinder Morgan Inc (Click to enlarge)


Long-Term Dividends History of Kinder Morgan Inc (KMI) (Click to enlarge)


Long-Term Dividend Yield History of Kinder Morgan Inc (NYSE: KMI) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 28.51 and forward P/E ratio is 18.07. The dividend yield has a value of 4.07 percent. Price to book ratio is 2.93 and price to sales ratio 1.94. The operating margin amounts to 14.43 percent.

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

Basic Material Stocks With Strongest Earnings Growth (Click to enlarge)

Related stock ticker symbols:
ERF, ETP, EROC, NGLS, AWC, MWE, EPD, PWE, KMI, EC, WMB,  MT, NUE, RES

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.

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