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Best Industrial Goods Stock Picks For 2013 | High Growth at Top Margins

The best industrial growth picks for 2013 originally published at "long-term-investments.blogspot.com" Everybody likes to invest in well growing companies with strong brands and big cash flows, free for distributing to shareholders via share buybacks or dividend payments. The best stocks to buy are not only the cheapest shares with a low P/E or a high dividend yield. Good stocks are also those with a great track record in terms of industry growth and future growth prospects. Now, we are close to year-end and I like to discover some growth stock picks for next year 2013. Today, I focus on stocks from the industrial goods sector (354 shares available). These are my criteria:

- Forward P/E under 15
- Past 5Y Sales growth over 10 percent
- Earnings per share growth for the next five years over 10 percent
- Operating Margin over 10 percent

Sixteen companies fulfilled the above mentioned criteria. Eight of them pay dividends and fourteen have a current buy or better recommendation. The two best represented industries within the screening results are aerospace/defense and industrial equipments.

Here are the 3 best yielding dividend stocks:
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AZZ Incorporated (NYSE:AZZ) has a market capitalization of $911.00 million. The company employs 1,956 people, generates revenue of $469.11 million and has a net income of $40.74 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $100.17 million. The EBITDA margin is 21.35 percent (the operating margin is 13.57 percent and the net profit margin 8.68 percent).

Financial Analysis: The total debt represents 37.08 percent of the company’s assets and the total debt in relation to the equity amounts to 78.23 percent. Due to the financial situation, a return on equity of 14.99 percent was realized. Twelve trailing months earnings per share reached a value of $2.10. Last fiscal year, the company paid $0.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.11, the P/S ratio is 1.94 and the P/B ratio is finally 3.15. The dividend yield amounts to 1.56 percent and the beta ratio has a value of 1.04.


”Long-Term
Long-Term Stock History Chart Of AZZ Incorporated (AZZ)
”Long-Term
Long-Term Dividends History of AZZ Incorporated (AZZ)
”Long-Term
Long-Term Dividend Yield History of AZZ Incorporated (AZZ)

FLIR Systems (NASDAQ:FLIR) has a market capitalization of $3.05 billion. The company employs 3,084 people, generates revenue of $1.544 billion and has a net income of $222.65 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $390.20 million. The EBITDA margin is 25.27 percent (the operating margin is 20.28 percent and the net profit margin 14.42 percent).

Financial Analysis: The total debt represents 11.54 percent of the company’s assets and the total debt in relation to the equity amounts to 15.70 percent. Due to the financial situation, a return on equity of 14.36 percent was realized. Twelve trailing months earnings per share reached a value of $1.44. Last fiscal year, the company paid $0.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.15, the P/S ratio is 1.98 and the P/B ratio is finally 2.00. The dividend yield amounts to 1.38 percent and the beta ratio has a value of 0.78.


”Long-Term
Long-Term Stock History Chart Of FLIR Systems (FLIR)
”Long-Term
Long-Term Dividends History of FLIR Systems (FLIR)
”Long-Term
Long-Term Dividend Yield History of FLIR Systems (FLIR)

ABB (NYSE:ABB) has a market capitalization of $46.70 billion. The company employs 133,600 people, generates revenue of $37.990 billion and has a net income of $3.306 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.670 billion. The EBITDA margin is 14.92 percent (the operating margin is 12.28 percent and the net profit margin 8.70 percent).

Financial Analysis: The total debt represents 10.08 percent of the company’s assets and the total debt in relation to the equity amounts to 25.33 percent. Due to the financial situation, a return on equity of 20.61 percent was realized. Twelve trailing months earnings per share reached a value of $1.27. Last fiscal year, the company 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 16.00, the P/S ratio is 1.24 and the P/B ratio is finally 2.96. The dividend yield amounts to 2.38 percent and the beta ratio has a value of 1.51.


”Long-Term
Long-Term Stock History Chart Of ABB (ABB)
”Long-Term
Long-Term Dividends History of ABB (ABB)
”Long-Term
Long-Term Dividend Yield History of ABB (ABB)


Take a closer look at the full list of the best industrial goods stock picks for next year 2013. The average P/E ratio amounts to 13.06 and forward P/E ratio is 10.97. The dividend yield has a value of 0.59 percent. Price to book ratio is 2.13 and price to sales ratio 1.27. The operating margin amounts to 15.38 percent and the beta ratio is 1.42. The average stock from the screening results has a debt to equity ratio of 0.36.

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

Best Industrial Goods Stock Picks For 2013  (click to enlarge)

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Related stock ticker symbols:
ABB, AZZ, FLIR, JOY, RBC, WWD, VMI, TGI, BEAV, CVU, SWHC, HOLI, ATRO, FSIN, SKUL, LMIA

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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.