Basic materials are the source of all products. They are necessary for economic growth and wealth. Normally, the valuation of a company from the sector depends on the price developments from the underlying commodities. In times of economic slowdowns, there are overcapacities and pricing pressure. Otherwise in booming times, commodity stocks are highly scalable companies.
I screened the sector by stocks with the highest earnings per share growth for the upcoming five years (at least 15 percent yearly). In addition, the company should pay today more than 3 percent in cash dividends. Fourteen stocks fulfilled my criteria of which six are high yields. Twelve stocks have a buy or better recommendation.
Here are my favorite stocks:
1. Energy Transfer Partners (ETP, Financial) has a market capitalization of $9.74 billion. The company employs 5,433 people, generates revenues of $5,884.83 million and has a net income of $617.22 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,348.56 million. Because of these figures, the EBITDA margin is 22.92 percent (operating margin 17.09 percent and the net profit margin finally 10.49 percent).
The total debt representing 53.01 percent of the company’s assets and the total debt in relation to the equity amounts to 135.77 percent. Due to the financial situation, a return on equity of 5.01 percent was realized. Twelve trailing months earnings per share reached a value of $1.35. Last fiscal year, the company paid $3.58 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 34.44, Price/Sales 1.84 and Price/Book ratio 1.98. Dividend Yield: 7.63 percent. The beta ratio is 0.66.
2. Enterprise Products Partners (EPD, Financial) has a market capitalization of $43.95 billion. The company employs 5,070 people, generates revenues of $44,313.00 million and has a net income of $2,088.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,819.70 million. Because of these figures, the EBITDA margin is 8.62 percent (operating margin 6.45 percent and the net profit margin finally 4.71 percent).
The total debt representing percent of the company’s assets and the total debt in relation to the equity amounts to percent. Due to the financial situation, a return on equity of percent was realized. Twelve trailing months earnings per share reached a value of $2.37. Last fiscal year, the company paid $2.48 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 21.06, Price/Sales 1.00 and Price/Book ratio is not calculable. Dividend Yield: 4.97 percent. The beta ratio is 0.59.
3. Kinder Morgan (KMI, Financial) has a market capitalization of $26.42 billion. The company employs 8,142 people, generates revenues of $8,190.60 million and has a net income of $300.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,409.10 million. Because of these figures, the EBITDA margin is 29.41 percent (operating margin 15.64 percent and the net profit margin finally 3.67 percent).
The total debt representing 54.87 percent of the company’s assets and the total debt in relation to the equity amounts to 461.18 percent. Due to the financial situation, a return on equity of 14.23 percent was realized. Twelve trailing months earnings per share reached a value of $0.71. Last fiscal year, the company paid $0.74 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 45.95, Price/Sales 2.77 and Price/Book ratio 6.59. Dividend Yield: 3.87 percent. The beta ratio is not calculable.
Take a closer look at the full table of the best yielding basic material stocks with highst expected earnings growth. The average price to earnings ratio (P/E ratio) amounts to 28.51 and forward P/E ratio is 18.07. The dividend yield has a value of 4.07 percent. Price to book ratio is 2.93 and price to sales ratio 1.94. The operating margin amounts to 14.43 percent.
Related stock ticker symbols:
ERF, ETP, EROC, NGLS, AWC, MWE, EPD, PWE, KMI, EC, WMB, MT, NUE, RES
Selected Articles:
· 11 Basic Material Dividend Stocks With Buy Or Better Rating
· Best Yielding Basic Material Wholesale Stocks
· 12 Basic Material High Yields With Very Low Beta Ratios
· 18 Cheapest Basic Material High Yield Stocks
I screened the sector by stocks with the highest earnings per share growth for the upcoming five years (at least 15 percent yearly). In addition, the company should pay today more than 3 percent in cash dividends. Fourteen stocks fulfilled my criteria of which six are high yields. Twelve stocks have a buy or better recommendation.
Here are my favorite stocks:
1. Energy Transfer Partners (ETP, Financial) has a market capitalization of $9.74 billion. The company employs 5,433 people, generates revenues of $5,884.83 million and has a net income of $617.22 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,348.56 million. Because of these figures, the EBITDA margin is 22.92 percent (operating margin 17.09 percent and the net profit margin finally 10.49 percent).
The total debt representing 53.01 percent of the company’s assets and the total debt in relation to the equity amounts to 135.77 percent. Due to the financial situation, a return on equity of 5.01 percent was realized. Twelve trailing months earnings per share reached a value of $1.35. Last fiscal year, the company paid $3.58 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 34.44, Price/Sales 1.84 and Price/Book ratio 1.98. Dividend Yield: 7.63 percent. The beta ratio is 0.66.
2. Enterprise Products Partners (EPD, Financial) has a market capitalization of $43.95 billion. The company employs 5,070 people, generates revenues of $44,313.00 million and has a net income of $2,088.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,819.70 million. Because of these figures, the EBITDA margin is 8.62 percent (operating margin 6.45 percent and the net profit margin finally 4.71 percent).
The total debt representing percent of the company’s assets and the total debt in relation to the equity amounts to percent. Due to the financial situation, a return on equity of percent was realized. Twelve trailing months earnings per share reached a value of $2.37. Last fiscal year, the company paid $2.48 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 21.06, Price/Sales 1.00 and Price/Book ratio is not calculable. Dividend Yield: 4.97 percent. The beta ratio is 0.59.
3. Kinder Morgan (KMI, Financial) has a market capitalization of $26.42 billion. The company employs 8,142 people, generates revenues of $8,190.60 million and has a net income of $300.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,409.10 million. Because of these figures, the EBITDA margin is 29.41 percent (operating margin 15.64 percent and the net profit margin finally 3.67 percent).
The total debt representing 54.87 percent of the company’s assets and the total debt in relation to the equity amounts to 461.18 percent. Due to the financial situation, a return on equity of 14.23 percent was realized. Twelve trailing months earnings per share reached a value of $0.71. Last fiscal year, the company paid $0.74 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 45.95, Price/Sales 2.77 and Price/Book ratio 6.59. Dividend Yield: 3.87 percent. The beta ratio is not calculable.
Take a closer look at the full table of the best yielding basic material stocks with highst expected earnings growth. The average price to earnings ratio (P/E ratio) amounts to 28.51 and forward P/E ratio is 18.07. The dividend yield has a value of 4.07 percent. Price to book ratio is 2.93 and price to sales ratio 1.94. The operating margin amounts to 14.43 percent.
Related stock ticker symbols:
ERF, ETP, EROC, NGLS, AWC, MWE, EPD, PWE, KMI, EC, WMB, MT, NUE, RES
Selected Articles:
· 11 Basic Material Dividend Stocks With Buy Or Better Rating
· Best Yielding Basic Material Wholesale Stocks
· 12 Basic Material High Yields With Very Low Beta Ratios
· 18 Cheapest Basic Material High Yield Stocks
