Cheapness could have several reasons and can be expressed with many fundamentals. I am focused in my research on classical fundamentals like P/E, P/B and P/S.
Each month, I make a screen of America’s cheapest dividend paying large capitalized stocks with highest expected growth for the upcoming fiscal year. The stocks from the list have a market capitalization of more than USD 10 billion and earnings per share are expected to grow for at least 10 percent for the next year. Despite the strong growth, they still have a P/E ratio of less than 15 and a P/S and P/B ratio of less than two. Fourteen companies fulfilled the mentioned criteria of which ten stocks have a buy or better recommendation.
Here are my
favorites:
PetroChina (NYSE:PTR) has a market capitalization of $241.42 billion. The company employs 552,810 people, generates revenue of $353.396 billion and has a net income of $21.027 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $52.558 billion. The EBITDA margin is 14.87 percent (the operating margin is 7.95 percent and the net profit margin 5.95 percent).
Financial Analysis: The total debt represents 20.52 percent of the company’s assets and the total debt in relation to the equity amounts to 41.82 percent. Due to the financial situation, a return on equity of 11.16 percent was realized. Twelve trailing months earnings per share reached a value of $10.14. Last fiscal year, the company paid $4.56 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.00, the P/S ratio is 0.73 and the P/B ratio is finally 1.41. The dividend yield amounts to 3.80 percent and the beta ratio has a value of 1.10.
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| Long-Term Stock History Chart Of PetroChina (PTR) |
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| Long-Term Dividends History of PetroChina (PTR) |
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| Long-Term Dividend Yield History of PetroChina (PTR) |
Magna (NYSE:MGA) has a market capitalization of $13.16 billion. The company employs 117,000 people, generates revenue of $30.837 billion and has a net income of $1.426 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.228 billion. The EBITDA margin is 7.23 percent (the operating margin is 5.68 percent and the net profit margin 4.62 percent).
Financial Analysis: The total debt represents 2.52 percent of the company’s assets and the total debt in relation to the equity amounts to 4.58 percent. Due to the financial situation, a return on equity of 16.28 percent was realized. Twelve trailing months earnings per share reached a value of $6.09. Last fiscal year, the company paid $1.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.27, the P/S ratio is 0.43 and the P/B ratio is finally 1.40. The dividend yield amounts to 2.27 percent and the beta ratio has a value of 1.42.
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| Long-Term Stock History Chart Of Magna (MGA) |
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| Long-Term Dividends History of Magna (MGA) |
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| Long-Term Dividend Yield History of Magna (MGA) |
Murphy Oil (NYSE:MUR) has a market capitalization of $11.77 billion. The company employs 3,497 people, generates revenue of $28.626 billion and has a net income of $964.05 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.013 billion. The EBITDA margin is 10.53 percent (the operating margin is 5.67 percent and the net profit margin 3.37 percent).
Financial Analysis: The total debt represents 12.81 percent of the company’s assets and the total debt in relation to the equity amounts to 25.11 percent. Due to the financial situation, a return on equity of 10.88 percent was realized. Twelve trailing months earnings per share reached a value of $4.95. Last fiscal year, the company paid $1.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.46, the P/S ratio is 0.41 and the P/B ratio is finally 1.32. The dividend yield amounts to 2.03 percent and the beta ratio has a value of 1.22.
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| Long-Term Stock History Chart Of Murphy Oil (MUR) |
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| Long-Term Dividends History of Murphy Oil (MUR) |
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| Long-Term Dividend Yield History of Murphy Oil (MUR) |
National-Oilwell (NYSE:NOV) has a market capitalization of $29.12 billion. The company employs 42,183 people, generates revenue of $20.041 billion and has a net income of $2.483 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.185 billion. The EBITDA margin is 20.88 percent (the operating margin is 17.75 percent and the net profit margin 12.39 percent).
Financial Analysis: The total debt represents 10.00 percent of the company’s assets and the total debt in relation to the equity amounts to 15.56 percent. Due to the financial situation, a return on equity of 13.16 percent was realized. Twelve trailing months earnings per share reached a value of $5.83. Last fiscal year, the company paid $0.49 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.70, the P/S ratio is 1.45 and the P/B ratio is finally 1.44. The dividend yield amounts to 0.76 percent and the beta ratio has a value of 1.68.
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| Long-Term Stock History Chart Of National-Oilwell (NOV) |
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| Long-Term Dividends History of National-Oilwell (NOV) |
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| Long-Term Dividend Yield History of National-Oilwell (NOV) |
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 10.24 while the forward P/E
ratio is 9.85. P/S ratio is 0.75 and P/B ratio 1.28. The expected earnings
growth for next year amounts to 15.93 and 11.69 percent for the upcoming five
years.
Here is the full table with
some fundamentals (TTM):
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| Cheapest Large Cap Dividend Stocks (Click to enlarge) |
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Related stock ticker symbols:
VIP, ETP, SKM, AEG, PTR, KSS,
SNP, MGA, MUR, ABT, DB, PBR-A, PKX, NOV
Selected Articles:
* 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.