Cheap High Yield Stocks In Terms Of Free Cash Flow Researched By Dividend Yield - Stock, Capital, Investment. High earnings are good but they are nothing worth if the company needs the money for investments, growth or debt reductions. A figure that measures the real income of the company is the free cash flow. The ratio shows the operating cash flow less changes in working capital and capital expenditures.
I screened the market by high yield stocks with a current cheap price to free cash flow ratio of less than 15. Out there are 59 companies with such a high yield and low price ratio but most the results are dominated by stocks with a lower capitalization. That’s why I screened only stocks with a market capitalization of more than USD 2 billion. Exactly eleven stocks remained or which seven are recommended to buy.
Here are my favorite stocks:
R.R. Donnelley & Sons Co. (NASDAQ:RRD) has a market capitalization of $2.22 billion. The company employs 58,000 people, generates revenues of $10,611.00 million and has a net income of $-121.10 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $657.40 million. Because of these figures, the EBITDA margin is 6.20 percent (operating margin -0.04 percent and the net profit margin finally -1.14 percent).
Financial Analysis:
The total debt representing 44.20 percent of the company’s assets and the total debt in relation to the equity amounts to 351.06 percent. Due to the financial situation, a return on equity of -7.51 percent was realized. Twelve trailing months earnings per share reached a value of $-0.73. Last fiscal year, the company paid $1.04 in form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is not calculable, P/S ratio 0.21 and P/B ratio 2.12. Dividend Yield: 8.39 percent. The beta ratio is 1.89.
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| Long-Term Stock History Chart Of R.R. Donnelley & Sons Co. (Click to enlarge) |
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| Long-Term Dividends History of R.R. Donnelley & Sons Co. (RRD) (Click to enlarge) |
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| Long-Term Dividend Yield History of R.R. Donnelley & Sons Co. (NASDAQ: RRD) (Click to enlarge) |
Financial Analysis:
The total debt representing 33.80 percent of the company’s assets and the total debt in relation to the equity amounts to 95.39 percent. Due to the financial situation, a return on equity of 15.47 percent was realized. Twelve trailing months earnings per share reached a value of $4.93. Last fiscal year, the company paid $3.91 in form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 16.11, P/S ratio 0.37 and P/B ratio 2.32. Dividend Yield: 5.23 percent. The beta ratio is 0.49.
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| Long-Term Stock History Chart Of Plains All American Pi... (Click to enlarge) |
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| Long-Term Dividends History of Plains All American Pi... (PAA) (Click to enlarge) |
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| Long-Term Dividend Yield History of Plains All American Pi... (NYSE: PAA) (Click to enlarge) |
Gannett Co. (NYSE:GCI) has a market capitalization of $3.65 billion. The company employs 31,000 people, generates revenues of $5,239.99 million and has a net income of $500.13 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,012.42 million. Because of these figures, the EBITDA margin is 19.32 percent (operating margin 15.55 percent and the net profit margin finally 9.54 percent).
Financial Analysis:
The total debt representing 26.61 percent of the company’s assets and the total debt in relation to the equity amounts to 75.62 percent. Due to the financial situation, a return on equity of 20.43 percent was realized. Twelve trailing months earnings per share reached a value of $1.89. Last fiscal year, the company paid $0.24 in form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 8.15, P/S ratio 0.69 and P/B ratio 1.56. Dividend Yield: 5.22 percent. The beta ratio is 2.45.
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| Long-Term Stock History Chart Of Gannett Co., Inc. (Click to enlarge) |
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| Long-Term Dividends History of Gannett Co., Inc. (GCI) (Click to enlarge) |
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| Long-Term Dividend Yield History of Gannett Co., Inc. (NYSE: GCI) (Click to enlarge) |
Take a closer look at the full table of the cheapest higher capitalized stocks. The average price to earnings ratio (P/E ratio) amounts to 15.84 and forward P/E ratio is 12.84. The dividend yield has a value of 7.67 percent. Price to book ratio is 1.45 and price to sales ratio 0.78. The operating margin amounts to 7.42 percent. The companies are valuated at 8.21 times of free cash flow.
Here is the full table with some fundamentals (TTM):
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| 11 High Yield Stocks With Cheap Free Cash Flow Ratios (Click to enlarge) |
Related stock ticker symbols:
FTE, TEF, PBI, RRD, AV, TI, SLF, HNP, GCI, PAA, SIX
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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.
