12/31/2013

5 Stocks Warren Buffett Keeps An Eye On...

Attached are five more stocks with fundamentals that meet Warren Buffett target criteria. 

I've introduced a few more stocks in this blog earlier this month and I believe that it's a good tool to get new stock ideas in a hot market.

The markets are not cheap for the time being and high-quality stocks have a much higher premium rate. But the good thing is that this should not make it impossible to find new investment targets.

You must have patience to get the right investments at the right prices. Only the disciplined investor makes the better return.

5 stocks with Warren Buffett like criteria are...

Cummins (NYSE:CMI) has a market capitalization of $26.22 billion. The company employs 46,000 people, generates revenue of $17.334 billion and has a net income of $1.738 billion. Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.307 billion. The EBITDA margin is 13.31 percent (the operating margin is 13.00 percent and the net profit margin 10.03 percent).

Financial Analysis: The total debt represents 6.18 percent of Cummins’s assets and the total debt in relation to the equity amounts to 11.74 percent. Due to the financial situation, a return on equity of 27.20 percent was realized by Cummins. Twelve trailing months earnings per share reached a value of $7.55. Last fiscal year, Cummins paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.53, the P/S ratio is 1.51 and the P/B ratio is finally 4.02. The dividend yield amounts to 1.79 percent and the beta ratio has a value of 1.72.

Long-Term Stock Price Chart Of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)

Viacom (NASDAQ:VIA) has a market capitalization of $38.46 billion. The company employs 10,000 people, generates revenue of $13.794 billion and has a net income of $2.449 billion. Viacom’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.166 billion. The EBITDA margin is 30.20 percent (the operating margin is 28.45 percent and the net profit margin 17.75 percent).

Financial Analysis: The total debt represents 49.88 percent of Viacom’s assets and the total debt in relation to the equity amounts to 228.87 percent. Due to the financial situation, a return on equity of 38.08 percent was realized by Viacom. Twelve trailing months earnings per share reached a value of $4.89. Last fiscal year, Viacom paid $1.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.89, the P/S ratio is 2.78 and the P/B ratio is finally 7.45. The dividend yield amounts to 1.39 percent and the beta ratio has a value of 1.06.

Long-Term Stock Price Chart Of Viacom (VIA)
Long-Term Dividend Payment History of Viacom (VIA)
Long-Term Dividend Yield History of Viacom (VIA)

PACCAR (NASDAQ:PCAR) has a market capitalization of $20.83 billion. The company employs 22,000 people, generates revenue of $17.050 billion and has a net income of $1.111 billion. PACCAR’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.296 billion. The EBITDA margin is 13.47 percent (the operating margin is 9.36 percent and the net profit margin 6.52 percent).

Financial Analysis: The total debt represents 42.30 percent of PACCAR’s assets and the total debt in relation to the equity amounts to 134.77 percent. Due to the financial situation, a return on equity of 19.83 percent was realized by PACCAR. Twelve trailing months earnings per share reached a value of $3.07. Last fiscal year, PACCAR paid $1.58 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.14, the P/S ratio is 1.22 and the P/B ratio is finally 3.56. The dividend yield amounts to 1.36 percent and the beta ratio has a value of 1.41.

Long-Term Stock Price Chart Of PACCAR (PCAR)
Long-Term Dividend Payment History of PACCAR (PCAR)
Long-Term Dividend Yield History of PACCAR (PCAR)

Aetna (NYSE:AET) has a market capitalization of $25.05 billion. The company employs 35,000 people, generates revenue of $36.595 billion and has a net income of $1.657 billion. Aetna’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.402 billion. The EBITDA margin is 9.30 percent (the operating margin is 7.69 percent and the net profit margin 4.53 percent).

Financial Analysis: The total debt represents 15.62 percent of Aetna’s assets and the total debt in relation to the equity amounts to 62.29 percent. Due to the financial situation, a return on equity of 16.15 percent was realized by Aetna. Twelve trailing months earnings per share reached a value of $4.91. Last fiscal year, Aetna paid $0.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.87, the P/S ratio is 0.69 and the P/B ratio is finally 2.15. The dividend yield amounts to 1.32 percent and the beta ratio has a value of 0.89.

Long-Term Stock Price Chart Of Aetna (AET)
Long-Term Dividend Payment History of Aetna (AET)
Long-Term Dividend Yield History of Aetna (AET)

TJX Companies (NYSE:TJX) has a market capitalization of $45.03 billion. The company employs 179,000 people, generates revenue of $25.878 billion and has a net income of $1.906 billion. TJX Companies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.615 billion. The EBITDA margin is 13.97 percent (the operating margin is 11.89 percent and the net profit margin 7.37 percent).

Financial Analysis: The total debt represents 8.14 percent of TJX Companies’s assets and the total debt in relation to the equity amounts to 21.13 percent. Due to the financial situation, a return on equity of 55.47 percent was realized by TJX Companies. Twelve trailing months earnings per share reached a value of $2.96. Last fiscal year, TJX Companies paid $0.46 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.42, the P/S ratio is 1.74 and the P/B ratio is finally 12.52. The dividend yield amounts to 0.92 percent and the beta ratio has a value of 0.46.

Long-Term Stock Price Chart Of TJX Companies (TJX)
Long-Term Dividend Payment History of TJX Companies (TJX)
Long-Term Dividend Yield History of TJX Companies (TJX)


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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.

1 comment:

  1. I think All the stocks you have mentioned here are really special but i guess one needs the eye of warren Buffett to judge stocks like this. What a wonderful thing to learn from great man. I really appreciate it. I thinks that before going to buy a dividend paying stock in India finally one must check that stock performance is justifying it's latest performance or not as sometimes it happens that when the company pay dividends to shareholders in form of cash, stocks prices increases as of result of cash dividends while the performance not boost upto that level. Better to stick away with such stocks if price valuations are not matching performances.

    http://in.dividendinvestor.com/

    ReplyDelete

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