I’ve found no reason why stocks from the old technology area are so low priced. You can buy some of the major players for enterprise values of 5-10. That’s damn cheap if you compare this figure with companies like Coca Cola. There you pay 12 times of the enterprise value. One reason could be that the technology is changing very fast and every technology could lose their advantage in only a few years. But a ratio of 3 for technology market leader?
However, today I like to proceed with my monthly dividend screen of the cheapest stocks measured by the lowest forward P/E. Because of the huge amount of stocks and the higher risk from smaller companies, I observe only shares with a market cap over USD 10 billion.
The 20 cheapest technology stocks have a valuation multiple between 5.7 and 11.1 of the expected earnings. Two stocks with a double-digit yield are below the results and nine are currently recommended to buy.
Here are my favorite stocks:
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Cisco Systems (NASDAQ:CSCO) has a market capitalization of $111.07 billion. The company employs 66,639 people, generates revenue of $46.061 billion and has a net income of $8.041 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.667 billion. The EBITDA margin is 27.50 percent (the operating margin is 21.85 percent and the net profit margin 17.46 percent).
Financial Analysis: The total debt represents 17.79 percent of the company’s assets and the total debt in relation to the equity amounts to 31.84 percent. Due to the financial situation, a return on equity of 16.32 percent was realized. Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, the company paid $0.28 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.99, the P/S ratio is 2.41 and the P/B ratio is finally 2.15. The dividend yield amounts to 3.26 percent and the beta ratio has a value of 1.23.
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| Long-Term Stock Price Chart Of Cisco Systems (CSCO) |
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| Long-Term Dividend Payment History of Cisco Systems (CSCO) |
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| Long-Term Dividend Yield History of Cisco Systems (CSCO) |
Corning (NYSE:GLW) has a market capitalization of $21.90 billion. The company employs 28,700 people, generates revenue of $8.012 billion and has a net income of $1.728 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.292 billion. The EBITDA margin is 28.61 percent (the operating margin is 16.16 percent and the net profit margin 21.57 percent).
Financial Analysis: The total debt represents 11.77 percent of the company’s assets and the total debt in relation to the equity amounts to 16.09 percent. Due to the financial situation, a return on equity of 8.12 percent was realized. Twelve trailing months earnings per share reached a value of $1.18. Last fiscal year, the company paid $0.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.63, the P/S ratio is 2.74 and the P/B ratio is finally 1.02. The dividend yield amounts to 2.69 percent and the beta ratio has a value of 1.44.
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| Long-Term Stock Price Chart Of Corning (GLW) |
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| Long-Term Dividend Payment History of Corning (GLW) |
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| Long-Term Dividend Yield History of Corning (GLW) |
Intl. Business Machines (NYSE:IBM) has a market capitalization of $228.51 billion. The company employs 434,246 people, generates revenue of $104.507 billion and has a net income of $16.604 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.394 billion. The EBITDA margin is 25.26 percent (the operating margin is 20.96 percent and the net profit margin 15.89 percent).
Financial Analysis: The total debt represents 27.91 percent of the company’s assets and the total debt in relation to the equity amounts to 176.40 percent. Due to the financial situation, a return on equity of 85.15 percent was realized. Twelve trailing months earnings per share reached a value of $14.50. Last fiscal year, the company paid $3.30 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.11, the P/S ratio is 2.17 and the P/B ratio is finally 12.12. The dividend yield amounts to 1.86 percent and the beta ratio has a value of 0.69.
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| Long-Term Stock Price Chart Of Intl. Business Machines (IBM) |
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| Long-Term Dividend Payment History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
Take a closer look at the full list of the cheapest technology dividend stocks. The average P/E ratio amounts to 12.39
and forward P/E ratio is 9.13. The dividend yield has a value of 3.93 percent.
Price to book ratio is 1.14 and price to sales ratio 1.44. The operating margin
amounts to 16.23 percent and the beta ratio is 1.14. Stocks from the list have
an average debt to equity ratio of 0.87.
Here is the full table with
some fundamentals (TTM):
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| 20 Cheapest Large Cap Technology Stocks (Click to enlarge) |
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Related stock
ticker symbols:
HPQ, NTT, WDC,
XRX, VIP, STX, DELL, TU, FTE, TI, MBT, CSCO, AAPL, SKM, GLW, CHL, MSFT, CA, AMX,
IBM
Selected Articles:
*I am CSCO, CA, IBM. I
receive no compensation to write about these specific stocks, sector or theme.
I don't plan to increase or decrease positions or obligations within the next
72 hours.
For the other stocks: 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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