The debt situation is one of the most important issues in corporate finance. It also expresses the ability to grow sales and earnings by enlarging the balance sheet with bank loans.
Only a low leveraged corporate has potential to boost sales without taking new investors into the boat that dilute the current earnings per share.
Today I would like to start an article serial about low leveraged stocks from several sectors with currently small dividend payouts. I believe it’s good to see what companies have the biggest potential to give shareholders huge amounts of money back in the near future and believe me, the tech sector is not the only place to be.
My criteria are a low dividend payout ratio of less than 20 percent as well as a debt-to-equity ratio under 0.5. Only twelve stocks fulfilled these very tight defined criteria.
One result is a High-Yield and nine stocks are recommended to buy or better. Most of the results come from the medical appliances & supplies or equipment industry.
These are the 3 cheapest results by forward P/E:
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Humana (NYSE:HUM) has a market capitalization of $14.92 billion. The company employs 43,400 people, generates revenue of $39.126 billion and has a net income of $1.222 billion. Humana’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.354 billion. The EBITDA margin is 6.02 percent (the operating margin is 5.15 percent and the net profit margin 3.12 percent).
Financial Analysis: The total debt represents 14.69 percent of Humana’s assets and the total debt in relation to the equity amounts to 33.18 percent. Due to the financial situation, a return on equity of 14.45 percent was realized by Humana. Twelve trailing months earnings per share reached a value of $9.40. Last fiscal year, Humana paid $1.03 in the form of dividends to shareholders. The dividend payout ratio of HUM amounts to 11.1 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.14, the P/S ratio is 0.38 and the P/B ratio is finally 1.70. The dividend yield amounts to 1.14 percent and the beta ratio has a value of 1.02.
Long-Term Stock Price Chart Of Humana (HUM) |
Long-Term Dividend Payment History of Humana (HUM) |
Long-Term Dividend Yield History of Humana (HUM) |
Chemed (NYSE:CHE) has a market capitalization of $1.34 billion. The company employs 14,096 people, generates revenue of $1.430 billion and has a net income of $89.30 million. Chemed’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $199.24 million. The EBITDA margin is 13.93 percent (the operating margin is 10.94 percent and the net profit margin 6.24 percent).
Financial Analysis: The total debt represents 20.34 percent of Chemed’s assets and the total debt in relation to the equity amounts to 38.58 percent. Due to the financial situation, a return on equity of 20.60 percent was realized by Chemed. Twelve trailing months earnings per share reached a value of $4.41. Last fiscal year, Chemed paid $0.68 in the form of dividends to shareholders. The dividend payout ratio of CHE amounts to 16 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.34, the P/S ratio is 0.91 and the P/B ratio is finally 2.85. The dividend yield amounts to 1.15 percent and the beta ratio has a value of 0.40.
Long-Term Stock Price Chart Of Chemed (CHE) |
Long-Term Dividend Payment History of Chemed (CHE) |
Long-Term Dividend Yield History of Chemed (CHE) |
Zimmer Holdings (NYSE:ZMH) has a market capitalization of $13.97 billion. The company employs 9,300 people, generates revenue of $4.471 billion and has a net income of $752.90 million. Zimmer Holdings earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.661 billion. The EBITDA margin is 37.16 percent (the operating margin is 23.42 percent and the net profit margin 16.84 percent).
Financial Analysis: The total debt represents 20.20 percent of Zimmer Holdings assets and the total debt in relation to the equity amounts to 31.07 percent. Due to the financial situation, a return on equity of 13.28 percent was realized by Zimmer Holdings. Twelve trailing months earnings per share reached a value of $4.06. Last fiscal year, Zimmer Holdings paid $0.54 in the form of dividends to shareholders. The dividend payout ratio of ZMH amounts to 18.60 percent.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.32, the P/S ratio is 3.10 and the P/B ratio is finally 2.39. The dividend yield amounts to 0.98 percent and the beta ratio has a value of 1.18.
Long-Term Stock Price Chart Of Zimmer Holdings (ZMH) |
Long-Term Dividend Payment History of Zimmer Holdings (ZMH) |
Long-Term Dividend Yield History of Zimmer Holdings (ZMH) |
Take a closer look at the full list of low debt healthcare dividend stocks with big potential to boost dividends. The average P/E ratio amounts to 20.22
and forward P/E ratio is 17.66. The dividend yield has a value of 1.16 percent.
Price to book ratio is 2.90 and price to sales ratio 3.76. The operating margin
amounts to 23.72 percent and the beta ratio is 0.75. Stocks from the list have
an average debt to equity ratio of 0.22.
Here is the full table with
some fundamentals (TTM):
Healthcare Dividend Potentials (Click to enlarge) |
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Related Stock Ticker Symbols:
DXR, RMD, HUM,
CHE, ATRI, ZMH, MLAB, TMO, IVC, AGN, CMN, COO
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.