4 Really Undervalued Stocks With High Quality Dividends And A Consistent Business

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Sep 02, 2013
I’ve received access to the gurufocus database recently. They run on their site several automated screener to find great value stocks.

Today I used the undervalued predictable screener and I will introduce the best yielding results (more than 2 percent dividend yield) here on my site for you. It's definitly a good source if you have no ideas what to buy for the long-run.

Eighteen stocks from the screen yielding over the mentioned level. Two of them got a high-yield and twelve stocks have a buy or better rating.

For more details about the methodic to find cheap predictable stocks, you should read the gurufocus guide about Discount Cash Flow and Discount Earnings to find undervalued stocks. Technology, services and consumer stocks dominate the results.

Here are the biggest stocks from the Undervalued Predictable screener:

Apple (AAPL)
has a market capitalization of $442.61 billion. The company employs 72,800 people, generates revenue of $156.508 billion and has a net income of $41.733 billion. Apple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $58.51 billion. The EBITDA margin is 37.39 percent (the operating margin is 35.30 percent and the net profit margin 26.67 percent).

Financial Analysis: The total debt represents 0.00 percent of Apple’s assets and the total debt in relation to the equity amounts to 0.00 percent. Due to the financial situation, a return on equity of 42.84 percent was realized by Apple. Twelve trailing months earnings per share reached a value of $40.04. Last fiscal year, Apple paid $2.65 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.17, the P/S ratio is 2.83 and the P/B ratio is finally 3.87. The dividend yield amounts to 2.50 percent and the beta ratio has a value of 0.97.

Wal-Mart Stores (WMT) has a market capitalization of $239.13 billion. The company employs 2,200,000 people, generates revenue of $469.162 billion and has a net income of $17.756 billion. Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36.302 billion. The EBITDA margin is 7.74 percent (the operating margin is 5.93 percent and the net profit margin 3.78 percent).

Financial Analysis: The total debt represents 26.65 percent of Wal-Mart Stores’s assets and the total debt in relation to the equity amounts to 70.91 percent. Due to the financial situation, a return on equity of 23.02 percent was realized by Wal-Mart Stores. Twelve trailing months earnings per share reached a value of $5.12. Last fiscal year, Wal-Mart Stores paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.24, the P/S ratio is 0.51 and the P/B ratio is finally 3.17. The dividend yield amounts to 2.58 percent and the beta ratio has a value of 0.36.

McDonald's (MCD) has a market capitalization of $94.33 billion. The company employs 440,000 people, generates revenue of $27.567 billion and has a net income of $5.464 billion. McDonald's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.865 billion. The EBITDA margin is 35.79 percent (the operating margin is 31.21 percent and the net profit margin 19.82 percent).

Financial Analysis: The total debt represents 38.52 percent of McDonald's assets and the total debt in relation to the equity amounts to 89.14 percent. Due to the financial situation, a return on equity of 36.82 percent was realized by McDonald's. Twelve trailing months earnings per share reached a value of $5.46. Last fiscal year, McDonald's paid $2.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.30, the P/S ratio is 3.42 and the P/B ratio is finally 6.19. The dividend yield amounts to 3.26 percent and the beta ratio has a value of 0.37.

Taiwan Semiconductor Manufacturing (TSM) has a market capitalization of $85.85 billion. The company employs 39,267 people, generates revenue of $16.931 billion and has a net income of $5.550 billion. Taiwan Semiconductor Manufacturing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.448 billion. The EBITDA margin is 61.71 percent (the operating margin is 34.84 percent and the net profit margin 32.78 percent).

Financial Analysis: The total debt represents 12.25 percent of Taiwan Semiconductor Manufacturing’s assets and the total debt in relation to the equity amounts to 16.17 percent. Due to the financial situation, a return on equity of 23.48 percent was realized by Taiwan Semiconductor Manufacturing. Twelve trailing months earnings per share reached a value of $1.11. Last fiscal year, Taiwan Semiconductor Manufacturing paid $0.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.91, the P/S ratio is 5.14 and the P/B ratio is finally 3.55. The dividend yield amounts to 3.03 percent and the beta ratio has a value of 0.97.

Take a closer look at the full list of undervalued stocks with predictable business operations. The average P/E ratio amounts to 14.09 and forward P/E ratio is 12.76. The dividend yield has a value of 3.27 percent. Price to book ratio is 4.20 and price to sales ratio 2.10. The operating margin amounts to 21.34 percent and the beta ratio is 0.93. Stocks from the list have an average debt to equity ratio of 0.62.

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Related Stock Ticker Symbols:

NRCIB, TEO, CXW, CPSI, CA, MCD, GCBC, NSC, KSS, WMT, TUP, TSM, CSX, AAPL, ACN, SYT, JWN, INGR, BDX

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