Cheap large
capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. It's always good to own cheap stocks in order to gain a return.
For sure, cheapness is a question
of definition and in the end its growth that makes a stock cheap or expensive.
I
make each month a screen about the cheapest large capitalized dividend stocks. Below
are screening criteria; they are very sternly in my view. I use this screen to find some attractive bargains. In a
hot market it's ever hard to find low valuated stocks with great earnings growth
perspectives. Especially within the recent months, the number of results decreased
rapidly. Let’s look if the recent crisis 5/21 had some positive effects for the
screen.
My criteria for the cheap large cap screen are:
- Market Capitalization
over USD 10 billion
- Expected Earnings
per share growth over 10 percent for the next year.
- P/E ratio under
15
- P/S and P/B
ratio under 2
- Positive
Dividends
Thirteen companies
fulfilled these criteria. It’s exactly one stock less than last month. Two High-Yields
are below the results and eight stocks have a current buy or better rating.
Freeport-McMoRan Copper & Gold (NYSE:FCX) has a market capitalization of $27.73 billion. The company employs 34,000 people, generates revenue of $18.010 billion and has a net income of $3.977 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.927 billion. The EBITDA margin is 38.46 percent (the operating margin is 31.35 percent and the net profit margin 22.08 percent).
Financial Analysis: The total debt represents 9.95 percent of the company’s assets and the total debt in relation to the equity amounts to 20.10 percent. Due to the financial situation, a return on equity of 18.33 percent was realized. Twelve trailing months earnings per share reached a value of $3.07. Last fiscal year, the company paid $1.25 in the form of dividends to shareholders. 5-Year earnings per share is expected to grow by 17.60 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.52, the P/S ratio is 1.56 and the P/B ratio is finally 1.60. The dividend yield amounts to 4.23 percent and the beta ratio has a value of 2.02.
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| Long-Term Stock Price Chart Of Freeport-McMoRan Copper & Gold (FCX) |
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| Long-Term Dividend Payment History of Freeport-McMoRan Copper & Gold (FCX) |
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| Long-Term Dividend Yield History of Freeport-McMoRan Copper & Gold (FCX) |
National-Oilwell Varco (NYSE:NOV) has a market capitalization of $30.32 billion. The company employs 51,661 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 $5.58. Last fiscal year, the company paid $0.49 in the form of dividends to shareholders. 5-Year earnings per share is expected to grow by 14.33 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.72, the P/S ratio is 1.48 and the P/B ratio is finally 1.47. The dividend yield amounts to 1.49 percent and the beta ratio has a value of 1.76.
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| Long-Term Stock Price Chart Of National-Oilwell Varco (NOV) |
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| Long-Term Dividend Payment History of National-Oilwell Varco (NOV) |
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| Long-Term Dividend Yield History of National-Oilwell Varco (NOV) |
Magna Intl. (NYSE:MGA) has a market capitalization of $16.22 billion. The company employs 121,000 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 $2.308 billion. The EBITDA margin is 7.48 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 $6.20. Last fiscal year, the company paid $1.10 in the form of dividends to shareholders. 5-Year earnings per share is expected to grow by 12.75 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.24, the P/S ratio is 0.52 and the P/B ratio is finally 1.72. The dividend yield amounts to 1.84 percent and the beta ratio has a value of 1.41.
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| Long-Term Stock Price Chart Of Magna Intl. (MGA) |
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| Long-Term Dividend Payment History of Magna Intl. (MGA) |
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| Long-Term Dividend Yield History of Magna Intl. (MGA) |
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 12.25 while the forward P/E
ratio is 10.02. P/S ratio is 0.90 and P/B ratio 1.54. The expected earnings
growth for next year amounts to 18.65 and 8.47 percent for the upcoming five
years.
Here is the full table with
some fundamentals (TTM):
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| Cheapest Dividend Paying Large Caps (Click to enlarge) |
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Related stock ticker symbols:
SKM, BP, NEM, FCX, TCK, PKX,
AEG, KSS, ENI, MUR, MGA, BSBR, NOV, ETE
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.