The market often misprices assets
due to fears, false expectations, unexpected events or something else.
Sometimes a stock is traded away of its internal value because it’s not the hot
industry.
Growth plays an important
role in the market valuation and is often the basic reason for a difference in valuation.
Today I like to
start a discussion by introducing 13 stocks that might be higher priced due
to their growth perspectives. I've compiled the stocks from a market screening
that has a strong focus on future growth and low P/E multiples. In addition, a
solid profit situation and adequate initial yield are essential.
Microchip Technology -- Yield: 3.31%
Microchip Technology (NASDAQ:MCHP) employs 9,449 people, generates revenue of $2,147.04 million and has a net income of $365.32 million. The current market capitalization stands at $9.14 billion.Microchip Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $706.76 million. The EBITDA margin is 32.92% (the operating margin is 19.82% and the net profit margin 17.02%).
Financials: The total debt represents 38.21% of Microchip Technology assets and the total debt in relation to the equity amounts to 89.35%. Due to the financial situation, a return on equity of 17.66% was realized by Microchip Technology.
Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, Microchip Technology paid $1.42 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.36, the P/S ratio is 4.26 and the P/B ratio is finally 4.28. The dividend yield amounts to 3.31%.
Stock Charts:
Long-Term Stock Price Chart of Microchip Technology (MCHP) |
Long-Term Dividend Payment History of Microchip Technology (MCHP) |
Long-Term Dividend Yield History of Microchip Technology (MCHP) |
T. Rowe Price Group -- Yield: 2.73%
T. Rowe Price Group (NASDAQ:TROW) employs 5,991 people, generates revenue of $3,982.10 million and has a net income of $1,229.60 million. The current market capitalization stands at $19.49 billion.T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,002.60 million. The EBITDA margin is 50.29% (the operating margin is 47.48% and the net profit margin 30.88%).
Financials: The total debt represents 0.00% of T. Rowe Price Group assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 23.80% was realized by T. Rowe Price Group.
Twelve trailing months earnings per share reached a value of $4.56. Last fiscal year, T. Rowe Price Group paid $1.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.68, the P/S ratio is 4.89 and the P/B ratio is finally 3.68. The dividend yield amounts to 2.73%.
Stock Charts:
Long-Term Stock Price Chart of T. Rowe Price Group (TROW) |
Long-Term Dividend Payment History of T. Rowe Price Group (TROW) |
Long-Term Dividend Yield History of T. Rowe Price Group (TROW) |
BlackRock -- Yield: 2.66%
BlackRock (NYSE:BLK) employs 12,200 people, generates revenue of $11,081.00 million and has a net income of $3,264.00 million. The current market capitalization stands at $53.70 billion.BlackRock’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,727.00 million. The EBITDA margin is 42.66% (the operating margin is 40.38% and the net profit margin 29.46%).
Financials: The total debt represents 3.47% of BlackRock assets and the total debt in relation to the equity amounts to 30.37%. Due to the financial situation, a return on equity of 12.24% was realized by BlackRock.
Twelve trailing months earnings per share reached a value of $19.83. Last fiscal year, BlackRock paid $7.72 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.55, the P/S ratio is 4.85 and the P/B ratio is finally 1.98. The dividend yield amounts to 2.66%.
Stock Charts:
Long-Term Stock Price Chart of BlackRock (BLK) |
Long-Term Dividend Payment History of BlackRock (BLK) |
Long-Term Dividend Yield History of BlackRock (BLK) |
Gentex -- Yield: 2.17%
Gentex (NASDAQ:GNTX) employs 4,196 people, generates revenue of $1,375.50 million and has a net income of $288.60 million. The current market capitalization stands at $4.59 billion.Gentex’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $476.21 million. The EBITDA margin is 34.62% (the operating margin is 29.00% and the net profit margin 20.98%).
Financials: The total debt represents 13.13% of Gentex assets and the total debt in relation to the equity amounts to 16.90%. Due to the financial situation, a return on equity of 19.91% was realized by Gentex.
Twelve trailing months earnings per share reached a value of $0.99. Last fiscal year, Gentex paid $0.31 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.78, the P/S ratio is 3.34 and the P/B ratio is finally 2.95. The dividend yield amounts to 2.17%.
Stock Charts:
Long-Term Stock Price Chart of Gentex (GNTX) |
Long-Term Dividend Payment History of Gentex (GNTX) |
Long-Term Dividend Yield History of Gentex (GNTX) |
AmTrust Financial -- Yield: 1.90%
AmTrust Financial (NASDAQ:AFSI) employs 5,100 people, generates revenue of $4,092.37 million and has a net income of $418.25 million. The current market capitalization stands at $5.23 billion.AmTrust Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $979.58 million. The EBITDA margin is 23.94% (the operating margin is 10.88% and the net profit margin 10.22%).
Financials: The total debt represents 6.69% of AmTrust Financial assets and the total debt in relation to the equity amounts to 45.45%. Due to the financial situation, a return on equity of 28.28% was realized by AmTrust Financial.
Twelve trailing months earnings per share reached a value of $5.54. Last fiscal year, AmTrust Financial paid $0.85 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.42, the P/S ratio is 1.28 and the P/B ratio is finally 2.83. The dividend yield amounts to 1.90%.
Stock Charts:
Long-Term Stock Price Chart of AmTrust Financial (AFSI) |
Long-Term Dividend Payment History of AmTrust Financial (AFSI) |
Long-Term Dividend Yield History of AmTrust Financial (AFSI) |
Apple -- Yield: 1.79%
Apple (NASDAQ:AAPL) employs 92,600 people, generates revenue of $182,795.00 million and has a net income of $39,510.00 million. The current market capitalization stands at $661.29 billion.Apple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $60,503.00 million. The EBITDA margin is 33.10% (the operating margin is 28.72% and the net profit margin 21.61%).
Financials: The total debt represents 15.22% of Apple assets and the total debt in relation to the equity amounts to 31.64%. Due to the financial situation, a return on equity of 33.61% was realized by Apple.
Twelve trailing months earnings per share reached a value of $8.66. Last fiscal year, Apple paid $1.82 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.39, the P/S ratio is 3.62 and the P/B ratio is finally 6.10. The dividend yield amounts to 1.79%.
Stock Charts:
Long-Term Stock Price Chart of Apple (AAPL) |
Long-Term Dividend Payment History of Apple (AAPL) |
Long-Term Dividend Yield History of Apple (AAPL) |
EMC -- Yield: 1.73%
EMC (NYSE:EMC) employs 70,000 people, generates revenue of $24,440.00 million and has a net income of $2,894.00 million. The current market capitalization stands at $51.24 billion.EMC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,140.00 million. The EBITDA margin is 25.12% (the operating margin is 16.52% and the net profit margin 11.84%).
Financials: The total debt represents 11.93% of EMC assets and the total debt in relation to the equity amounts to 24.98%. Due to the financial situation, a return on equity of 12.28% was realized by EMC.
Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, EMC paid $0.45 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.76, the P/S ratio is 2.10 and the P/B ratio is finally 2.41. The dividend yield amounts to 1.73%.
Stock Charts:
Long-Term Stock Price Chart of EMC (EMC) |
Long-Term Dividend Payment History of EMC (EMC) |
Long-Term Dividend Yield History of EMC (EMC) |
Lam Research -- Yield: 1.65%
Lam Research (NASDAQ:LRCX) employs 6,500 people, generates revenue of $5,259.31 million and has a net income of $655.58 million. The current market capitalization stands at $11.50 billion.Lam Research’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,145.40 million. The EBITDA margin is 21.78% (the operating margin is 14.98% and the net profit margin 12.47%).
Financials: The total debt represents 27.79% of Lam Research assets and the total debt in relation to the equity amounts to 51.00%. Due to the financial situation, a return on equity of 12.94% was realized by Lam Research.
Twelve trailing months earnings per share reached a value of $3.70. Last fiscal year, Lam Research paid $0.84 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.64, the P/S ratio is 2.19 and the P/B ratio is finally 2.31. The dividend yield amounts to 1.65%.
Stock Charts:
Long-Term Stock Price Chart of Lam Research (LRCX) |
Long-Term Dividend Payment History of Lam Research (LRCX) |
Long-Term Dividend Yield History of Lam Research (LRCX) |
Gilead Sciences -- Yield: 1.49%
Gilead Sciences (NASDAQ:GILD) employs 7,000 people, generates revenue of $24,890.00 million and has a net income of $12,059.00 million. The current market capitalization stands at $169.66 billion.Gilead Sciences’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,315.00 million. The EBITDA margin is 65.55% (the operating margin is 61.33% and the net profit margin 48.45%).
Financials: The total debt represents 35.78% of Gilead Sciences assets and the total debt in relation to the equity amounts to 80.41%. Due to the financial situation, a return on equity of 90.32% was realized by Gilead Sciences.
Twelve trailing months earnings per share reached a value of $9.53. Last fiscal year, Gilead Sciences paid $0.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.14, the P/S ratio is 6.82 and the P/B ratio is finally 11.23. The dividend yield amounts to 1.49%.
Stock Charts:
Long-Term Stock Price Chart of Gilead Sciences (GILD) |
Long-Term Dividend Payment History of Gilead Sciences (GILD) |
Long-Term Dividend Yield History of Gilead Sciences (GILD) |
Juniper Networks -- Yield: 1.42%
Juniper Networks (NYSE:JNPR) employs 8,806 people, generates revenue of $4,627.10 million and has a net income of $-334.30 million. The current market capitalization stands at $10.84 billion.Juniper Networks’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $747.60 million. The EBITDA margin is 16.16% (the operating margin is -4.41% and the net profit margin -7.22%).
Financials: The total debt represents 16.08% of Juniper Networks assets and the total debt in relation to the equity amounts to 27.42%. Due to the financial situation, a return on equity of -5.47% was realized by Juniper Networks.
Twelve trailing months earnings per share reached a value of $-0.99. Last fiscal year, Juniper Networks paid $0.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 2.34 and the P/B ratio is finally 2.39. The dividend yield amounts to 1.42%.
Stock Charts:
Long-Term Stock Price Chart of Juniper Networks (JNPR) |
Long-Term Dividend Payment History of Juniper Networks (JNPR) |
Long-Term Dividend Yield History of Juniper Networks (JNPR) |
Avago Technologies -- Yield: 1.31%
Avago Technologies (NASDAQ:AVGO) employs 8,400 people, generates revenue of $4,269.00 million and has a net income of $309.00 million. The current market capitalization stands at $31.68 billion.Avago Technologies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,210.00 million. The EBITDA margin is 28.34% (the operating margin is 10.26% and the net profit margin 7.24%).
Financials: The total debt represents 43.74% of Avago Technologies assets and the total debt in relation to the equity amounts to 141.50%. Due to the financial situation, a return on equity of 10.08% was realized by Avago Technologies.
Twelve trailing months earnings per share reached a value of $2.44. Last fiscal year, Avago Technologies paid $1.13 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 50.08, the P/S ratio is 7.42 and the P/B ratio is finally 9.56. The dividend yield amounts to 1.31%.
Stock Charts:
Long-Term Stock Price Chart of Avago Technologies (AVGO) |
Long-Term Dividend Payment History of Avago Technologies (AVGO) |
Long-Term Dividend Yield History of Avago Technologies (AVGO) |
NetEase -- Yield: 1.25%
NetEase (NASDAQ:NTES) employs 10,004 people, generates revenue of $1,832.76 million and has a net income of $750.41 million. The current market capitalization stands at $16.58 billion.NetEase’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $772.92 million. The EBITDA margin is 42.17% (the operating margin is 40.68% and the net profit margin 40.94%).
Financials: The total debt represents 6.75% of NetEase assets and the total debt in relation to the equity amounts to 8.76%. Due to the financial situation, a return on equity of 21.80% was realized by NetEase.
Twelve trailing months earnings per share reached a value of $5.84. Last fiscal year, NetEase paid $0.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.60, the P/S ratio is 9.05 and the P/B ratio is finally 4.50. The dividend yield amounts to 1.25%.
Stock Charts:
Long-Term Stock Price Chart of NetEase (NTES) |
Long-Term Dividend Payment History of NetEase (NTES) |
Long-Term Dividend Yield History of NetEase (NTES) |
Skyworks Solutions -- Yield: 1.17%
Skyworks Solutions (NASDAQ:SWKS) employs 5,550 people, generates revenue of $2,291.50 million and has a net income of $457.70 million. The current market capitalization stands at $16.99 billion.Skyworks Solutions’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $695.50 million. The EBITDA margin is 30.35% (the operating margin is 24.67% and the net profit margin 19.97%).
Financials: The total debt represents 0.00% of Skyworks Solutions assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 19.76% was realized by Skyworks Solutions.
Twelve trailing months earnings per share reached a value of $3.82. Last fiscal year, Skyworks Solutions paid $0.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.31, the P/S ratio is 7.42 and the P/B ratio is finally 6.66. The dividend yield amounts to 1.17%.
Stock Charts:
Long-Term Stock Price Chart of Skyworks Solutions (SWKS) |
Long-Term Dividend Payment History of Skyworks Solutions (SWKS) |
Long-Term Dividend Yield History of Skyworks Solutions (SWKS) |