As the stock market goes up, it's getting hard to find real bargains. The technology sector is still one of the sectors with cheap assets. Institutional investors love this field because of the high-margin growth opportunities.
I’ve found no reason why stocks from the old technology area are so low priced. You can buy some of the major players for enterprise values of 5-10. That’s damn cheap if you compare this figure with companies like Coca-Cola. There you pay 12 times the enterprise value. One reason could be that the technology is changing very fast and every technology could lose its advantage in only a few years. But a ratio of 3 for a technology market leader?
However, today I would like to proceed with my monthly dividend screen of the cheapest stocks measured by the lowest forward P/E. Because of the huge number of stocks and the higher risk from smaller companies, I observe only shares with a market cap over $10 billion USD.
The 20 cheapest technology stocks have a valuation multiple between 5.7 and 11.1 of the expected earnings. Two stocks with a double-digit yield are below the results, and nine are currently recommended to buy.
Here are my favorite stocks:
Cisco Systems Inc. (CSCO) has a market capitalization of $111.07 billion. The company employs 66,639 people, generates revenue of $46.061 billion and has a net income of $8.041 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.667 billion. The EBITDA margin is 27.50% (the operating margin is 21.85% and the net profit margin is 17.46%).
Financial Analysis: The total debt represents 17.79% of the company’s assets and the total debt in relation to the equity amounts to 31.84%. Due to the financial situation, a return on equity of 16.32% was realized. Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, the company paid $0.28 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.99, the P/S ratio is 2.41 and the P/B ratio is 2.15. The dividend yield amounts to 3.26% and the beta ratio has a value of 1.23.
Corning Inc. (GLW) has a market capitalization of $21.90 billion. The company employs 28,700 people, generates revenue of $8.012 billion and has a net income of $1.728 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.292 billion. The EBITDA margin is 28.61% (the operating margin is 16.16% and the net profit margin is 21.57%).
Financial Analysis: The total debt represents 11.77% of the company’s assets and the total debt in relation to the equity amounts to 16.09%. Due to the financial situation, a return on equity of 8.12% was realized. Twelve trailing months earnings per share reached a value of $1.18. Last fiscal year, the company paid $0.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.63, the P/S ratio is 2.74 and the P/B ratio is 1.02. The dividend yield amounts to 2.69% and the beta ratio has a value of 1.44.
International Business Machines Corp. (IBM) has a market capitalization of $228.51 billion. The company employs 434,246 people, generates revenue of $104.507 billion and has a net income of $16.604 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.394 billion. The EBITDA margin is 25.26% (the operating margin is 20.96% and the net profit margin 15.89%).
Financial Analysis: The total debt represents 27.91% of the company’s assets and the total debt in relation to the equity amounts to 176.40%. Due to the financial situation, a return on equity of 85.15% was realized. Twelve trailing months earnings per share reached a value of $14.50. Last fiscal year, the company 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 14.11, the P/S ratio is 2.17 and the P/B ratio is 2.12. The dividend yield amounts to 1.86% and the beta ratio has a value of 0.69.
Technology dividend stocks with low forward P/E ratios originally published at "long-term-investments.blogspot.com."
Take a closer look at the full list of the cheapest technology dividend stocks. The average P/E ratio amounts to 12.39 and the forward P/E ratio is 9.13. The dividend yield has a value of 3.93%. The price to book ratio is 1.14 and the price to sales ratio is1.44. The operating margin amounts to 16.23% and the beta ratio is 1.14. Stocks from the list have an average debt to equity ratio of 0.87.
Related stock ticker symbols:
HPQ, NTT, WDC, XRX, VIP, STX, DELL, TU, FTE, TI, MBT, CSCO, AAPL, SKM, GLW, CHL, MSFT, CA, AMX, IBM
Selected Articles:
· 20 Top Yielding Technology Stocks That Are Safer Than The Market
· Technology Growth Stocks With Highest Dividend Payments
· 20 Best Recommended Technology Stocks
· My Best Technology Stock Picks For 2013
*If you like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternative, you can follow me onFacebookor Twitter.
I’ve found no reason why stocks from the old technology area are so low priced. You can buy some of the major players for enterprise values of 5-10. That’s damn cheap if you compare this figure with companies like Coca-Cola. There you pay 12 times the enterprise value. One reason could be that the technology is changing very fast and every technology could lose its advantage in only a few years. But a ratio of 3 for a technology market leader?
However, today I would like to proceed with my monthly dividend screen of the cheapest stocks measured by the lowest forward P/E. Because of the huge number of stocks and the higher risk from smaller companies, I observe only shares with a market cap over $10 billion USD.
The 20 cheapest technology stocks have a valuation multiple between 5.7 and 11.1 of the expected earnings. Two stocks with a double-digit yield are below the results, and nine are currently recommended to buy.
Here are my favorite stocks:
Cisco Systems Inc. (CSCO) has a market capitalization of $111.07 billion. The company employs 66,639 people, generates revenue of $46.061 billion and has a net income of $8.041 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.667 billion. The EBITDA margin is 27.50% (the operating margin is 21.85% and the net profit margin is 17.46%).
Financial Analysis: The total debt represents 17.79% of the company’s assets and the total debt in relation to the equity amounts to 31.84%. Due to the financial situation, a return on equity of 16.32% was realized. Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, the company paid $0.28 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.99, the P/S ratio is 2.41 and the P/B ratio is 2.15. The dividend yield amounts to 3.26% and the beta ratio has a value of 1.23.
Corning Inc. (GLW) has a market capitalization of $21.90 billion. The company employs 28,700 people, generates revenue of $8.012 billion and has a net income of $1.728 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.292 billion. The EBITDA margin is 28.61% (the operating margin is 16.16% and the net profit margin is 21.57%).
Financial Analysis: The total debt represents 11.77% of the company’s assets and the total debt in relation to the equity amounts to 16.09%. Due to the financial situation, a return on equity of 8.12% was realized. Twelve trailing months earnings per share reached a value of $1.18. Last fiscal year, the company paid $0.32 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.63, the P/S ratio is 2.74 and the P/B ratio is 1.02. The dividend yield amounts to 2.69% and the beta ratio has a value of 1.44.
International Business Machines Corp. (IBM) has a market capitalization of $228.51 billion. The company employs 434,246 people, generates revenue of $104.507 billion and has a net income of $16.604 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26.394 billion. The EBITDA margin is 25.26% (the operating margin is 20.96% and the net profit margin 15.89%).
Financial Analysis: The total debt represents 27.91% of the company’s assets and the total debt in relation to the equity amounts to 176.40%. Due to the financial situation, a return on equity of 85.15% was realized. Twelve trailing months earnings per share reached a value of $14.50. Last fiscal year, the company 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 14.11, the P/S ratio is 2.17 and the P/B ratio is 2.12. The dividend yield amounts to 1.86% and the beta ratio has a value of 0.69.
Technology dividend stocks with low forward P/E ratios originally published at "long-term-investments.blogspot.com."
Take a closer look at the full list of the cheapest technology dividend stocks. The average P/E ratio amounts to 12.39 and the forward P/E ratio is 9.13. The dividend yield has a value of 3.93%. The price to book ratio is 1.14 and the price to sales ratio is1.44. The operating margin amounts to 16.23% and the beta ratio is 1.14. Stocks from the list have an average debt to equity ratio of 0.87.
Related stock ticker symbols:
HPQ, NTT, WDC, XRX, VIP, STX, DELL, TU, FTE, TI, MBT, CSCO, AAPL, SKM, GLW, CHL, MSFT, CA, AMX, IBM
Selected Articles:
· 20 Top Yielding Technology Stocks That Are Safer Than The Market
· Technology Growth Stocks With Highest Dividend Payments
· 20 Best Recommended Technology Stocks
· My Best Technology Stock Picks For 2013
*If you like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternative, you can follow me onFacebookor Twitter.
