It measures efficiency of the business in using its assets to generate net income. It is a profitability ratio.
I like the ratio because it tells me if a company has a highly profitable business that generates enough income from its invested assets.
The higher the ratio, the more profitable the assets are. I like it really but only a small number of dividend growth stocks have a really big ratio.
Asset Managers are the only cheaply valueated Dividend Champions. I talk about Franklin Resources and Eaton Vance.
Both are not really my favorites right now. Attached I've compiled for you all of the cheapest Dividend Achievers with a double-digit return on assets. Each of the results has a cheap forward P/E ratio.
Here are the results in detail...
Gap -- Yield: 4.22%
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 $8.62 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 $1.98. 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 11.00, the P/S ratio is 0.55 and the P/B ratio is finally 3.40. The dividend yield amounts to 4.22%.
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) |
Intl. Business Machines -- Yield: 3.68%
Intl. Business Machines (NYSE:IBM) employs 377,757 people, generates revenue of $81,741.00 million and has a net income of $13,364.00 million. The current market capitalization stands at $145.63 billion.Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,218.00 million. The EBITDA margin is 24.73% (the operating margin is 19.51% and the net profit margin 16.35%).
Financials: The total debt represents 36.10% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 279.69%. Due to the financial situation, a return on equity of 102.29% was realized by Intl. Business Machines.
Twelve trailing months earnings per share reached a value of $13.28. Last fiscal year, Intl. Business Machines paid $5.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.48, the P/S ratio is 1.79 and the P/B ratio is finally 10.32. The dividend yield amounts to 3.68%.
Stock Charts:
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| Long-Term Stock Price Chart of Intl. Business Machines (IBM) |
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| Long-Term Dividend Payment History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
Eaton Vance -- Yield: 3.05%
Eaton Vance (NYSE:EV) employs 1,473 people, generates revenue of $1,403.56 million and has a net income of $226.17 million. The current market capitalization stands at $3.89 billion.Eaton Vance’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $422.20 million. The EBITDA margin is 30.08% (the operating margin is 28.53% and the net profit margin 16.11%).
Financials: The total debt represents 45.87% of Eaton Vance assets and the total debt in relation to the equity amounts to 156.53%. Due to the financial situation, a return on equity of 35.50% was realized by Eaton Vance.
Twelve trailing months earnings per share reached a value of $2.10. Last fiscal year, Eaton Vance paid $1.02 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.58, the P/S ratio is 2.82 and the P/B ratio is finally 6.50. The dividend yield amounts to 3.05%.
Stock Charts:
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| Long-Term Stock Price Chart of Eaton Vance (EV) |
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| Long-Term Dividend Payment History of Eaton Vance (EV) |
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| Long-Term Dividend Yield History of Eaton Vance (EV) |
Williams-Sonoma -- Yield: 2.85%
Williams-Sonoma (NYSE:WSM) employs 11,600 people, generates revenue of $4,976.09 million and has a net income of $310.07 million. The current market capitalization stands at $4.45 billion.Williams-Sonoma’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $656.39 million. The EBITDA margin is 13.19% (the operating margin is 9.82% and the net profit margin 6.23%).
Financials: The total debt represents 0.00% of Williams-Sonoma assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 25.59% was realized by Williams-Sonoma.
Twelve trailing months earnings per share reached a value of $3.34. Last fiscal year, Williams-Sonoma 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 15.52, the P/S ratio is 0.93 and the P/B ratio is finally 3.88. The dividend yield amounts to 2.85%.
Stock Charts:
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| Long-Term Stock Price Chart of Williams-Sonoma (WSM) |
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| Long-Term Dividend Payment History of Williams-Sonoma (WSM) |
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| Long-Term Dividend Yield History of Williams-Sonoma (WSM) |
Polaris Industries -- Yield: 2.67%
Polaris Industries (NYSE:PII) employs 8,100 people, generates revenue of $4,719.29 million and has a net income of $455.36 million. The current market capitalization stands at $5.10 billion.Polaris Industries’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $798.97 million. The EBITDA margin is 16.93% (the operating margin is 15.17% and the net profit margin 9.65%).
Financials: The total debt represents 19.34% of Polaris Industries assets and the total debt in relation to the equity amounts to 47.02%. Due to the financial situation, a return on equity of 49.42% was realized by Polaris Industries.
Twelve trailing months earnings per share reached a value of $6.16. Last fiscal year, Polaris Industries paid $2.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.35, the P/S ratio is 1.13 and the P/B ratio is finally 5.48. The dividend yield amounts to 2.67%.
Stock Charts:
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| Long-Term Stock Price Chart of Polaris Industries (PII) |
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| Long-Term Dividend Payment History of Polaris Industries (PII) |
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| Long-Term Dividend Yield History of Polaris Industries (PII) |
Robert Half International -- Yield: 2.36%
Robert Half International (NYSE:RHI) employs 16,100 people, generates revenue of $5,094.93 million and has a net income of $357.80 million. The current market capitalization stands at $4.76 billion.Robert Half International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $633.94 million. The EBITDA margin is 12.44% (the operating margin is 11.39% and the net profit margin 7.02%).
Financials: The total debt represents 0.07% of Robert Half International assets and the total debt in relation to the equity amounts to 0.12%. Due to the financial situation, a return on equity of 36.07% was realized by Robert Half International.
Twelve trailing months earnings per share reached a value of $2.75. Last fiscal year, Robert Half International 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 13.56, the P/S ratio is 0.96 and the P/B ratio is finally 4.88. The dividend yield amounts to 2.36%.
Stock Charts:
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| Long-Term Stock Price Chart of Robert Half International (RHI) |
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| Long-Term Dividend Payment History of Robert Half International (RHI) |
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| Long-Term Dividend Yield History of Robert Half International (RHI) |
Franklin Resources -- Yield: 2.21%
Franklin Resources (NYSE:BEN) employs 9,200 people, generates revenue of $7,948.70 million and has a net income of $2,104.70 million. The current market capitalization stands at $18.58 billion.Franklin Resources’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,129.30 million. The EBITDA margin is 39.37% (the operating margin is 37.96% and the net profit margin 26.48%).
Financials: The total debt represents 13.19% of Franklin Resources assets and the total debt in relation to the equity amounts to 18.20%. Due to the financial situation, a return on equity of 17.27% was realized by Franklin Resources.
Twelve trailing months earnings per share reached a value of $2.76. Last fiscal year, Franklin Resources paid $0.60 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.80, the P/S ratio is 2.39 and the P/B ratio is finally 1.66. The dividend yield amounts to 2.21%.
Stock Charts:
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| Long-Term Stock Price Chart of Franklin Resources (BEN) |
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| Long-Term Dividend Payment History of Franklin Resources (BEN) |
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| Long-Term Dividend Yield History of Franklin Resources (BEN) |
Westlake Chemical -- Yield: 1.76%
Westlake Chemical (NYSE:WLK) employs 4,225 people, generates revenue of $4,463.34 million and has a net income of $665.04 million. The current market capitalization stands at $5.14 billion.Westlake Chemical’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,218.48 million. The EBITDA margin is 27.30% (the operating margin is 21.85% and the net profit margin 14.90%).
Financials: The total debt represents 13.61% of Westlake Chemical assets and the total debt in relation to the equity amounts to 23.21%. Due to the financial situation, a return on equity of 20.82% was realized by Westlake Chemical.
Twelve trailing months earnings per share reached a value of $4.70. Last fiscal year, Westlake Chemical paid $0.69 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.77, the P/S ratio is 1.20 and the P/B ratio is finally 1.64. The dividend yield amounts to 1.76%.
Stock Charts:
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| Long-Term Stock Price Chart of Westlake Chemical (WLK) |
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| Long-Term Dividend Payment History of Westlake Chemical (WLK) |
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| Long-Term Dividend Yield History of Westlake Chemical (WLK) |