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Potential Investment Targets Of Warren Buffett - Part III

Warren Buffett sits on big cash that is growing each month. I've started an article serial that discovers potential white elephants which could be potential takeover targets for the big guru investor.

The ideas came from Bloomberg. In my view, they are a little bit abstract and far away from that you might think because they were discovered by strict criteria.

Today you can find additional 5 stocks which could be interesting for the institutional investor from Omaha.

Here you can find the first two articles with the criteria:

5 Stocks That Warren Buffett Would Love: Part II
Warren Buffett's Targets Part I

5 stocks that Warren Buffett should like are..

Williams Partners (NYSE:WPZ) has a market capitalization of $20.70 billion. The company employs 3,658 people, generates revenue of $7.320 billion and has a net income of $1.232 billion. Williams Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.273 billion. The EBITDA margin is 31.05 percent (the operating margin is 20.72 percent and the net profit margin 16.83 percent).

Financial Analysis: The total debt represents 42.81 percent of Williams Partners’s assets and the total debt in relation to the equity amounts to 94.98 percent. Due to the financial situation, a return on equity of 7.51 percent was realized by Williams Partners. Twelve trailing months earnings per share reached a value of $1.76. Last fiscal year, Williams Partners paid $3.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.41, the P/S ratio is 2.98 and the P/B ratio is finally 1.91. The dividend yield amounts to 7.06 percent and the beta ratio has a value of 0.73.

Long-Term Stock Price Chart Of Williams Partners (WPZ)
Long-Term Dividend Payment History of Williams Partners (WPZ)
Long-Term Dividend Yield History of Williams Partners (WPZ)

Raytheon (NYSE:RTN) has a market capitalization of $28.94 billion. The company employs 67,800 people, generates revenue of $24.414 billion and has a net income of $1.901 billion. Raytheon’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.473 billion. The EBITDA margin is 14.23 percent (the operating margin is 12.24 percent and the net profit margin 7.79 percent).

Financial Analysis: The total debt represents 17.73 percent of Raytheon’s assets and the total debt in relation to the equity amounts to 58.95 percent. Due to the financial situation, a return on equity of 23.31 percent was realized by Raytheon. Twelve trailing months earnings per share reached a value of $5.91. Last fiscal year, Raytheon paid $2.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.33, the P/S ratio is 1.19 and the P/B ratio is finally 3.72. The dividend yield amounts to 2.42 percent and the beta ratio has a value of 0.82.

Long-Term Stock Price Chart Of Raytheon (RTN)
Long-Term Dividend Payment History of Raytheon (RTN)
Long-Term Dividend Yield History of Raytheon (RTN)

Yum! Brands (NYSE:YUM) has a market capitalization of $32.95 billion. The company employs 78,450 people, generates revenue of $13.633 billion and has a net income of $1.608 billion. Yum! Brands’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.932 billion. The EBITDA margin is 21.51 percent (the operating margin is 16.83 percent and the net profit margin 11.79 percent).

Financial Analysis: The total debt represents 32.65 percent of Yum! Brands’s assets and the total debt in relation to the equity amounts to 136.58 percent. Due to the financial situation, a return on equity of 80.31 percent was realized by Yum! Brands. Twelve trailing months earnings per share reached a value of $2.38. Last fiscal year, Yum! Brands paid $1.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.04, the P/S ratio is 2.42 and the P/B ratio is finally 15.52. The dividend yield amounts to 2.00 percent and the beta ratio has a value of 0.78.

Long-Term Stock Price Chart Of Yum! Brands (YUM)
Long-Term Dividend Payment History of Yum! Brands (YUM)
Long-Term Dividend Yield History of Yum! Brands (YUM)

Cardinal Health (NYSE:CAH) has a market capitalization of $22.91 billion. The company employs 33,600 people, generates revenue of $101.093 billion and has a net income of $335.00 million. Cardinal Health’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.508 billion. The EBITDA margin is 2.48 percent (the operating margin is 0.99 percent and the net profit margin 0.33 percent).

Financial Analysis: The total debt represents 14.93 percent of Cardinal Health’s assets and the total debt in relation to the equity amounts to 64.50 percent. Due to the financial situation, a return on equity of 5.48 percent was realized by Cardinal Health. Twelve trailing months earnings per share reached a value of $1.16. Last fiscal year, Cardinal Health paid $1.09 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 58.02, the P/S ratio is 0.23 and the P/B ratio is finally 3.83. The dividend yield amounts to 1.79 percent and the beta ratio has a value of 0.56.

Long-Term Stock Price Chart Of Cardinal Health (CAH)
Long-Term Dividend Payment History of Cardinal Health (CAH)
Long-Term Dividend Yield History of Cardinal Health (CAH)

McKesson (NYSE:MCK) has a market capitalization of $36.88 billion. The company employs 43,500 people, generates revenue of $122.455 billion and has a net income of $1.338 billion. McKesson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.899 billion. The EBITDA margin is 2.37 percent (the operating margin is 1.73 percent and the net profit margin 1.09 percent).

Financial Analysis: The total debt represents 14.01 percent of McKesson’s assets and the total debt in relation to the equity amounts to 68.93 percent. Due to the financial situation, a return on equity of 19.25 percent was realized by McKesson. Twelve trailing months earnings per share reached a value of $5.93. Last fiscal year, McKesson paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.07, the P/S ratio is 0.30 and the P/B ratio is finally 5.18. The dividend yield amounts to 0.59 percent and the beta ratio has a value of 0.56.

Long-Term Stock Price Chart Of McKesson (MCK)
Long-Term Dividend Payment History of McKesson (MCK)
Long-Term Dividend Yield History of McKesson (MCK)

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*I am long RTN. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.