If you look at the
book value per share, you can easily identify stocks that are traded below
their accounted assets.
If a
company’s P/B ratio is less than one, the shares are selling for less than the
value of the company’s assets.
What Is
Book Value?
Book value
is a measure of all of a company's assets: stocks, bonds, inventory,
manufacturing equipment, real estate, etc. In theory, book value should include
everything down to the pencils and staples used by employees, but for
simplicity's sake companies generally only include large assets that are easily
quantified.
Today I’ve
screened my Dividend Achievers list by stocks with a current P/B ratio below
one. 19 stocks matched exactly my criteria. The attached list shows all of
them, sorted by the lowest ratio to the highest.
DCP Midstream Partners -- Yield: 16.96%
DCP Midstream Partners (NYSE:DPM) employs 649 people, generates revenue of $3,642.00 million and has a net income of $437.00 million. The current market capitalization stands at $2.11 billion.DCP Midstream Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $564.00 million. The EBITDA margin is 15.49% (the operating margin is 12.47% and the net profit margin 12.00%).
Financials: The total debt represents 40.27% of DCP Midstream Partners assets and the total debt in relation to the equity amounts to 77.21%. Due to the financial situation, a return on equity of 12.24% was realized by DCP Midstream Partners.
Twelve trailing months earnings per share reached a value of $1.87. Last fiscal year, DCP Midstream Partners paid $3.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.82, the P/S ratio is 0.58 and the P/B ratio is finally 0.70. The dividend yield amounts to 16.96%.
Stock Charts:
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| Long-Term Stock Price Chart of DCP Midstream Partners (DPM) |
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| Long-Term Dividend Payment History of DCP Midstream Partners (DPM) |
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| Long-Term Dividend Yield History of DCP Midstream Partners (DPM) |
BHP Billiton -- Yield: 11.41%
BHP Billiton (NYSE:BHP) employs 29,670 people, generates revenue of $44,636.00 million and has a net income of $4,390.00 million. The current market capitalization stands at $55.08 billion.BHP Billiton’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,426.00 million. The EBITDA margin is 50.24% (the operating margin is 19.42% and the net profit margin 9.84%).
Financials: The total debt represents 25.02% of BHP Billiton assets and the total debt in relation to the equity amounts to 48.13%. Due to the financial situation, a return on equity of 4.76% was realized by BHP Billiton.
Twelve trailing months earnings per share reached a value of $1.28. Last fiscal year, BHP Billiton paid $4.96 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.94, the P/S ratio is 1.23 and the P/B ratio is finally 0.54. The dividend yield amounts to 11.41%.
Stock Charts:
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| Long-Term Stock Price Chart of BHP Billiton (BHP) |
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| Long-Term Dividend Payment History of BHP Billiton (BHP) |
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| Long-Term Dividend Yield History of BHP Billiton (BHP) |
Sunoco Logistics -- Yield: 8.54%
Sunoco Logistics (NYSE:SXL) employs 2,250 people, generates revenue of $18,088.00 million and has a net income of $300.00 million. The current market capitalization stands at $6.06 billion.Sunoco Logistics’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $860.00 million. The EBITDA margin is 4.75% (the operating margin is 2.03% and the net profit margin 1.66%).
Financials: The total debt represents 31.22% of Sunoco Logistics assets and the total debt in relation to the equity amounts to 63.79%. Due to the financial situation, a return on equity of 1.99% was realized by Sunoco Logistics.
Twelve trailing months earnings per share reached a value of $-0.14. Last fiscal year, Sunoco Logistics paid $1.50 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 0.33 and the P/B ratio is finally 0.88. The dividend yield amounts to 8.54%.
Stock Charts:
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| Long-Term Stock Price Chart of Sunoco Logistics (SXL) |
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| Long-Term Dividend Payment History of Sunoco Logistics (SXL) |
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| Long-Term Dividend Yield History of Sunoco Logistics (SXL) |
Murphy Oil -- Yield: 7.61%
Murphy Oil (NYSE:MUR) employs 1,712 people, generates revenue of $3,033.08 million and has a net income of $-2,255.77 million. The current market capitalization stands at $3.17 billion.Murphy Oil’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,013.89 million. The EBITDA margin is 33.43% (the operating margin is -104.35% and the net profit margin -74.37%).
Financials: The total debt represents 26.62% of Murphy Oil assets and the total debt in relation to the equity amounts to 57.47%. Due to the financial situation, a return on equity of -32.46% was realized by Murphy Oil.
Twelve trailing months earnings per share reached a value of $-13.10. Last fiscal year, Murphy Oil paid $1.40 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 1.04 and the P/B ratio is finally 0.61. The dividend yield amounts to 7.61%.
Stock Charts:
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| Long-Term Stock Price Chart of Murphy Oil (MUR) |
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| Long-Term Dividend Payment History of Murphy Oil (MUR) |
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| Long-Term Dividend Yield History of Murphy Oil (MUR) |
People's United Financial -- Yield: 4.68%
People's United Financial (NASDAQ:PBCT) employs 4,856 people, generates revenue of $1,068.90 million and has a net income of $260.10 million. The current market capitalization stands at $4.44 billion.People's United Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $455.70 million. The EBITDA margin is 35.48% (the operating margin is 30.40% and the net profit margin 20.25%).
Financials: The total debt represents 4.84% of People's United Financial assets and the total debt in relation to the equity amounts to 39.78%. Due to the financial situation, a return on equity of 5.55% was realized by People's United Financial.
Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, People's United Financial paid $0.67 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.61, the P/S ratio is 3.46 and the P/B ratio is finally 0.92. The dividend yield amounts to 4.68%.
Stock Charts:
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| Long-Term Stock Price Chart of People's United Financial (PBCT) |
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| Long-Term Dividend Payment History of People's United Financial (PBCT) |
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| Long-Term Dividend Yield History of People's United Financial (PBCT) |
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| 19 Dividend Achievers Below Book Value (click to enlarge) |
