The Cheapest Large Caps with Highest Expected Growth as of February 2012

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Feb 23, 2012
Here is a current sheet of America’s cheapest large caps that have the highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD10 billion and earnings per share are expected to grow for at least 20 percent. Despite the strong growth, they still have a P/E ratio of less than 20 and a P/S ratio of less than 2. Twenty-four stocks fulfilled these criteria of which one company has a double-digit yield; seven yield above 3 percent. Compared to the results from last month, LM Ericsson (ERIC, Financial) and Seagate (STX, Financial) are new in our results and they cover the second and third rank.


Here are my favorites in detail:


1. The Dow Chemical Company (DOW, Financial) has a market capitalization of $39.91 billion. The company employs 51,705 people, generates revenues of $59,985.00 million and has a net income of $2,784.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,562.00 million. Because of these figures, the EBITDA margin is 10.94 percent (operating margin 8.17 percent and the net profit margin finally 4.64 percent).


The total debt representing 31.20 percent of the company’s assets and the total debt in relation to the equity amounts to 96.94 percent. Due to the financial situation, a return on equity of 13.13 percent was realized. Twelve trailing months earnings per share reached a value of $2.04. Last fiscal year, the company paid $0.90 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 16.48, P/S is 0.67 and the P/B ratio has a value of 2.18. Dividend Yield: 2.97 percent. The beta ratio is 2.33.


2. Archer Daniels Midland (ADM) has a market capitalization of $20.87 billion. The company employs 30,700 people, generates revenues of $80,676.00 million and has a net income of $2,018.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,651.00 million. Because of these figures, the EBITDA margin is 4.53 percent (operating margin 3.74 percent and the net profit margin finally 2.50 percent).


The total debt representing 24.46 percent of the company’s assets and the total debt in relation to the equity amounts to 54.86 percent. Due to the financial situation, a return on equity of 12.19 percent was realized. Twelve trailing months earnings per share reached a value of $2.25. Last fiscal year, the company paid $0.62 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 14.02, P/S is 0.26 and the P/B ratio has a value of 1.13. Dividend Yield: 2.22 percent. The beta ratio is 0.48.


3. Johnson Controls (JCI) has a market capitalization of $23.58 billion. The company employs 162,000 people, generates revenues of $40,833.00 million and has a net income of $1,741.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,718.00 million. Because of these figures, the EBITDA margin is 6.66 percent (operating margin 5.17 percent and the net profit margin finally 4.26 percent).


The total debt representing 17.34 percent of the company’s assets and the total debt in relation to the equity amounts to 46.60 percent. Due to the financial situation, a return on equity of 15.38 percent was realized. Twelve trailing months earnings per share reached a value of $2.41. Last fiscal year, the company paid $0.64 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 14.38, P/S is 0.58 and the P/B ratio has a value of 2.13. Dividend Yield: 2.08 percent. The beta ratio is 1.87.


Take a look at the full list of cheap large capitalized stocks with highest expected earnings per share growth. The average P/E ratio amounts to 9.40 while the forward P/E ratio is 9.40. P/S ratio is 0.87 and price to book ratio 2.27. The expected earnings growth for next year amounts to 37.29 and 12.87 percent for the upcoming five years.


Related stock ticker symbols:

TEF, ERIC, STX, PTR, NUE, CCL, IP, DOW, TWC, NTT, AMAT, BA, UTX, ADM, JCI, AA, MS, NWSA, HES, MITSY, GM, AIG, DTV, PKX


Selected Articles:

·16 Cheapest High Yield Large Cap Stocks – An Overview

· Cheapest Large Caps With Highest Expected Growth As Of January 2012

· 12 Best Yielding NASDAQ Large Cap Dividend Stocks

· Cheap S&P 500 Dividend Aristocrats With Highest Expected Growth For The Next Half Decade