In the Cabot Benjamin Graham Value Investor, I utilize a value investing strategy developed by Benjamin Graham in the 1920s.
The details of this value strategy are spelled out clearly in his book, "The Intelligent Investor," published 60 years ago.
The objective of Graham's strategy is to identify unappreciated stocks and show you how to find undervalued stocks that meet certain criteria for quality and quantity ... stocks that are poised for stellar price appreciation.
Out of the multitude of companies, which ones would legendary value investor Benjamin Graham buy today? I've compiled nine great companies that fit Benjamin Graham's methods and criteria.
The companies in this list pass the rigorous requirements of either the Defensive Investor or the Enterprising Investor and are undervalued by the market.
These are the results:
Western Refining -- Yield: 6.54%
Western Refining (NYSE:WNR) employs 7,347 people, generates revenue of $9,787.04 million and has a net income of $614.43 million. The current market capitalization stands at $2.01 billion.Western Refining’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,092.00 million. The EBITDA margin is 11.16% (the operating margin is 9.50% and the net profit margin 6.28%).
Financials: The total debt represents 29.20% of Western Refining assets and the total debt in relation to the equity amounts to 131.12%. Due to the financial situation, a return on equity of 33.63% was realized by Western Refining.
Twelve trailing months earnings per share reached a value of $3.49. Last fiscal year, Western Refining paid $1.36 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.52, the P/S ratio is 0.22 and the P/B ratio is finally 1.67. The dividend yield amounts to 6.54%.
Stock Charts:
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| Long-Term Stock Price Chart of Western Refining (WNR) |
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| Long-Term Dividend Payment History of Western Refining (WNR) |
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| Long-Term Dividend Yield History of Western Refining (WNR) |
Western Digital -- Yield: 5.06%
Western Digital (NASDAQ:WDC) employs 76,449 people, generates revenue of $14,572.00 million and has a net income of $1,465.00 million. The current market capitalization stands at $10.08 billion.Western Digital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,916.00 million. The EBITDA margin is 20.01% (the operating margin is 11.06% and the net profit margin 10.05%).
Financials: The total debt represents 16.91% of Western Digital assets and the total debt in relation to the equity amounts to 27.84%. Due to the financial situation, a return on equity of 16.22% was realized by Western Digital.
Twelve trailing months earnings per share reached a value of $3.54. Last fiscal year, Western Digital paid $1.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.95, the P/S ratio is 0.63 and the P/B ratio is finally 0.99. The dividend yield amounts to 5.06%.
Stock Charts:
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| Long-Term Stock Price Chart of Western Digital (WDC) |
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| Long-Term Dividend Payment History of Western Digital (WDC) |
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| Long-Term Dividend Yield History of Western Digital (WDC) |
Welltower -- Yield: 5.04%
Welltower (NYSE:HCN) employs 476 people, generates revenue of $3,859.83 million and has a net income of $629.67 million. The current market capitalization stands at $24.47 billion.Welltower’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,933.00 million. The EBITDA margin is 50.08% (the operating margin is 27.72% and the net profit margin 16.31%).
Financials: The total debt represents 44.68% of Welltower assets and the total debt in relation to the equity amounts to 88.88%. Due to the financial situation, a return on equity of 4.18% was realized by Welltower.
Twelve trailing months earnings per share reached a value of $1.56. Last fiscal year, Welltower paid $3.30 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 44.01, the P/S ratio is 6.32 and the P/B ratio is finally 1.78. The dividend yield amounts to 5.04%.
Stock Charts:
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| Long-Term Stock Price Chart of Welltower (HCN) |
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| Long-Term Dividend Payment History of Welltower (HCN) |
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| Long-Term Dividend Yield History of Welltower (HCN) |
Gap -- Yield: 5.00%
Gap (NYSE:GPS) employs 141,000 people, generates revenue of $15,797.00 million and has a net income of $920.00 million. The current market capitalization stands at $7.47 billion.Gap’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,154.00 million. The EBITDA margin is 13.64% (the operating margin is 9.65% and the net profit margin 5.82%).
Financials: The total debt represents 23.16% of Gap assets and the total debt in relation to the equity amounts to 68.02%. Due to the financial situation, a return on equity of 33.29% was realized by Gap.
Twelve trailing months earnings per share reached a value of $2.23. Last fiscal year, Gap paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.25, the P/S ratio is 0.46 and the P/B ratio is finally 2.87. The dividend yield amounts to 5.00%.
Stock Charts:
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| Long-Term Stock Price Chart of Gap (GPS) |
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| Long-Term Dividend Payment History of Gap (GPS) |
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| Long-Term Dividend Yield History of Gap (GPS) |
Valero Energy -- Yield: 4.41%
Valero Energy (NYSE:VLO) employs 10,103 people, generates revenue of $87,804.00 million and has a net income of $4,101.00 million. The current market capitalization stands at $25.21 billion.Valero Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,671.00 million. The EBITDA margin is 9.88% (the operating margin is 7.24% and the net profit margin 4.67%).
Financials: The total debt represents 16.58% of Valero Energy assets and the total debt in relation to the equity amounts to 35.73%. Due to the financial situation, a return on equity of 19.35% was realized by Valero Energy.
Twelve trailing months earnings per share reached a value of $7.09. Last fiscal year, Valero Energy paid $1.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.80, the P/S ratio is 0.29 and the P/B ratio is finally 1.26. The dividend yield amounts to 4.41%.
Stock Charts:
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| Long-Term Stock Price Chart of Valero Energy (VLO) |
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| Long-Term Dividend Payment History of Valero Energy (VLO) |
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| Long-Term Dividend Yield History of Valero Energy (VLO) |
WestRock -- Yield: 3.96%
WestRock (NYSE:WRK) employs 41,400 people, generates revenue of $11,381.30 million and has a net income of $511.80 million. The current market capitalization stands at $9.73 billion.WestRock’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,758.60 million. The EBITDA margin is 15.45% (the operating margin is 7.70% and the net profit margin 4.50%).
Financials: The total debt represents 22.21% of WestRock assets and the total debt in relation to the equity amounts to 48.34%. Due to the financial situation, a return on equity of 6.35% was realized by WestRock.
Twelve trailing months earnings per share reached a value of $-0.01. Last fiscal year, WestRock paid $1.20 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 0.84 and the P/B ratio is finally 0.84. The dividend yield amounts to 3.96%.
Stock Charts:
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| Long-Term Stock Price Chart of WestRock (WRK) |
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| Long-Term Dividend Payment History of WestRock (WRK) |
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| Long-Term Dividend Yield History of WestRock (WRK) |
Invesco -- Yield: 3.79%
Invesco (NYSE:IVZ) employs 6,552 people, generates revenue of $5,122.90 million and has a net income of $964.10 million. The current market capitalization stands at $12.83 billion.Invesco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,452.00 million. The EBITDA margin is 28.34% (the operating margin is 26.21% and the net profit margin 18.82%).
Financials: The total debt represents 29.95% of Invesco assets and the total debt in relation to the equity amounts to 95.24%. Due to the financial situation, a return on equity of 11.94% was realized by Invesco.
Twelve trailing months earnings per share reached a value of $2.05. Last fiscal year, Invesco paid $1.06 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.85, the P/S ratio is 2.41 and the P/B ratio is finally 1.53. The dividend yield amounts to 3.79%.
Stock Charts:
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| Long-Term Stock Price Chart of Invesco (IVZ) |
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| Long-Term Dividend Payment History of Invesco (IVZ) |
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| Long-Term Dividend Yield History of Invesco (IVZ) |
Metlife -- Yield: 3.59%
Metlife (NYSE:MET) employs 69,000 people, generates revenue of $70,041.00 million and has a net income of $5,322.00 million. The current market capitalization stands at $49.43 billion.Metlife’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,199.00 million. The EBITDA margin is 13.13% (the operating margin is 12.39% and the net profit margin 7.60%).
Financials: The total debt represents 6.63% of Metlife assets and the total debt in relation to the equity amounts to 85.63%. Due to the financial situation, a return on equity of 7.36% was realized by Metlife.
Twelve trailing months earnings per share reached a value of $4.67. Last fiscal year, Metlife paid $1.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.67, the P/S ratio is 0.70 and the P/B ratio is finally 0.72. The dividend yield amounts to 3.59%.
Stock Charts:
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| Long-Term Stock Price Chart of Metlife (MET) |
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| Long-Term Dividend Payment History of Metlife (MET) |
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| Long-Term Dividend Yield History of Metlife (MET) |
Bed Bath & Beyond -- Yield: 1.17%
Bed Bath & Beyond (NASDAQ:BBBY) employs 62,000 people, generates revenue of $12,103.89 million and has a net income of $841.49 million. The current market capitalization stands at $6.62 billion.Bed Bath & Beyond’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,688.85 million. The EBITDA margin is 13.95% (the operating margin is 11.69% and the net profit margin 6.95%).
Financials: The total debt represents 23.08% of Bed Bath & Beyond assets and the total debt in relation to the equity amounts to 58.60%. Due to the financial situation, a return on equity of 31.74% was realized by Bed Bath & Beyond.
Twelve trailing months earnings per share reached a value of $5.14. Last fiscal year, Bed Bath & Beyond 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 8.30, the P/S ratio is 0.55 and the P/B ratio is finally 2.61. The dividend yield amounts to 1.17%.
Stock Charts:
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| Long-Term Stock Price Chart of Bed Bath & Beyond (BBBY) |
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| Long-Term Dividend Payment History of Bed Bath & Beyond (BBBY) |
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| Long-Term Dividend Yield History of Bed Bath & Beyond (BBBY) |