2/23/2012

The Cheapest Large Caps With Highest Expected Growth As Of February 2012

Cheapest Large Capitalized Stocks With Highest Earnings Per Share Growth By Dividend Yield – Stock, Capital, Investment. Here is a current sheet of America’s cheapest Large Caps that have the 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 20 percent. Despite the strong growth, they still have a P/E ratio of less than 20 and a P/S ratio of less than 2. Twenty-four stocks fulfilled these criteria of which one company has a double digit yield; seven yielding above 3 percent. Compared to the results from last month, LM Ericsson (ERIC) and Seagate (STX) are new in our results and they cover the second and third rank.


Here is the table with some fundamentals:
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The Dow Chemical Company (NYSE:DOW) has a market capitalization of $39.91 billion. The company employs 51,705 people, generates revenues of $59,985.00 million and has a net income of $2,784.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,562.00 million. Because of these figures, the EBITDA margin is 10.94 percent (operating margin 8.17 percent and the net profit margin finally 4.64 percent).


Financial Analysis:
The total debt representing 31.20 percent of the company’s assets and the total debt in relation to the equity amounts to 96.94 percent. Due to the financial situation, a return on equity of 13.13 percent was realized. Twelve trailing months earnings per share reached a value of $2.04. Last fiscal year, the company paid $0.90 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 16.48, P/S is 0.67 and the P/B ratio has a value of 2.18. Dividend Yield: 2.97 percent. The beta ratio is 2.33.


Long-Term Stock History Chart Of The Dow Chemical Company (Click to enlarge)


Long-Term Dividends History of The Dow Chemical Company (DOW) (Click to enlarge)


Long-Term Dividend Yield History of The Dow Chemical Company (NYSE: DOW) (Click to enlarge)


Archer Daniels Midland (NYSE:ADM) has a market capitalization of $20.87 billion. The company employs 30,700 people, generates revenues of $80,676.00 million and has a net income of $2,018.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,651.00 million. Because of these figures, the EBITDA margin is 4.53 percent (operating margin 3.74 percent and the net profit margin finally 2.50 percent).


Financial Analysis:
The total debt representing 24.46 percent of the company’s assets and the total debt in relation to the equity amounts to 54.86 percent. Due to the financial situation, a return on equity of 12.19 percent was realized. Twelve trailing months earnings per share reached a value of $2.25. Last fiscal year, the company paid $0.62 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 14.02, P/S is 0.26 and the P/B ratio has a value of 1.13. Dividend Yield: 2.22 percent. The beta ratio is 0.48.


Long-Term Stock History Chart Of Archer Daniels Midland... (Click to enlarge)


Long-Term Dividends History of Archer Daniels Midland... (ADM) (Click to enlarge)


Long-Term Dividend Yield History of Archer Daniels Midland... (NYSE: ADM) (Click to enlarge)


Johnson Controls (NYSE:JCI) has a market capitalization of $23.58 billion. The company employs 162,000 people, generates revenues of $40,833.00 million and has a net income of $1,741.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,718.00 million. Because of these figures, the EBITDA margin is 6.66 percent (operating margin 5.17 percent and the net profit margin finally 4.26 percent).


Financial Analysis:
The total debt representing 17.34 percent of the company’s assets and the total debt in relation to the equity amounts to 46.60 percent. Due to the financial situation, a return on equity of 15.38 percent was realized. Twelve trailing months earnings per share reached a value of $2.41. Last fiscal year, the company paid $0.64 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 14.38, P/S is 0.58 and the P/B ratio has a value of 2.13. Dividend Yield: 2.08 percent. The beta ratio is 1.87.


Long-Term Stock History Chart Of Johnson Controls, Inc. (Click to enlarge)


Long-Term Dividends History of Johnson Controls, Inc. (JCI) (Click to enlarge)


Long-Term Dividend Yield History of Johnson Controls, Inc. (NYSE: JCI) (Click to enlarge)


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 9.40 while the forward P/E ratio is 9.40. P/S ratio is 0.87 and price to book ratio 2.27. The expected earnings growth for next year amounts to 37.29 and 12.87 percent for the upcoming five years.

The Cheapest Large Caps In February 2012 (Click to enlarge)

Related stock ticker symbols:
TEF, ERIC, STX, PTR, NUE, CCL, IP, DOW, TWC, NTT, AMAT, BA, UTX, ADM, JCI, AA, MS, NWSA, HES, MITSY, GM, AIG, DTV, PKX

Selected Articles:
· Cheap S&P 500 Dividend Aristocrats With Highest Expected Growth For The Next Half Decade


* I don't have any positions of the mentioned stocks. I don't plan to initiate positions within the next 72 hours. I don't receive any compensation by writing about a specific stock or investment theme.

2 comments:

  1. I would like to say just a few things about value stocks. Their is one overwhelming fact when it comes to value investing and that is you must buy decent companies with very low price to sales ratios to have a high probability of making a lot of money buying value stocks their is no other way believe me. And what is a very low price to sales ratio. First let me explain very clearly to everyone what a low price to sales ratio is. The price to sales ratio is the market cap of a stock compared to the sales that the company of the stock does on a annual basis. In other words the company I talk about below has a market cap' which is all the shares of the company issued and outstanding of just eight billion dollars. But the comapny does fiftyfive billion dollars in annual sales. In other words the market is valuing bunge at just eight billion dollars but the company does fiftyfive billion dollars in annual sales get the idea. Ok one other thing never forget this warren buffett could never have made the enormous returns buying value stocks unless he was buying value stocks with very low price to sales ratios period' and I am almost certain if you asked him he would totally agree. Bear in mind I would not say something that I cannot back up believe me. I will give an example of a company of really decent quality that I consider really undervalued. The company is Bunge Limited symbol {BG} engages in the agriculture and food businesses worldwide. The stock currently trades around 59 dollars a share. I think the stock could easily get to 450 dollars a share over the next five years. Yes you heard it right four hundred and fifty dollars a share. Assuming their are not stock splits. And what do I base this on If the companies profit margain expands from around 1.75% to 4% over the next five years and if the sales of the company expand from 54 billion to 85 billion thats growth of about 7 or 8 percent a year and if the companies stock than trades at a price earnings ratio of about 20. That would put the price of the stock at 450 dollars a share. It could even be more than 450 dollars a share if you reinvest your dividends the company pays a dividend also if the company does a share buyback this could increase the value of the stock even more. Keep in mind that their are stocks that are popular that trade at much higher price earnings ratios than 20 times earnings one example is whole foods market it currently trades at 35 times earnings. Also keep in mind that bunge is a company of really decent quality not at all a high risk stock. It has the potential to leave a company like Mcdonald's in the dust. I understand your skepticsm if you are reading this but go to any stock broker or financial planner CPA that knows how to value stocks and they will confirm everything that Im saying here.

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