From my watch list, I take these three companies with good ROC that everyone should double-check.
1) Microsoft Corp. (MSFT)
Description: The Company generates revenue by developing, manufacturing, licensing, and supporting software products and services for different types of computing devices.
Ratios: Microsoft has a ROC of about 225%. Return on Assets of 13% and a Return On Equity of 24%. All these ratios are at average level compared to the ratio history of the company.
Ratios of Microsoft can be ranked as the top of Global Software and Infrastructure Industry
Financials: The company has a steady Financial situation.
Compared to history, Microsoft had better days, but Cash is not a problem and compared to Industry sector, everything is moving average.
Growth: All ratios (per share) are growing steadily even if numbers are not that amazing.
Revenue : +10% (5 years)
EBITDA : +5% (5 years)
Free Cash Flow : +5% (5 years)
BookValue : +20% (5 years)
Price: The stock is trading at about $47. The Peter Lynch chart gives a price of $53. The DCF value gives a price of $38.
Currently, the price is down 5% from its 52-week high and up 36% from its 52-week low.
The 200-days Moving Average price is 44$
Technically, MSFT is into an up-trend and there are no reversal patterns coming soon. Just an easy double top at 50$, but that looks like it’s more a resistance then a double-top.
Dividend Yeld: Microsoft has a steady and strong history of dividend yields. Current ratio is 2.44%.
On the last 10 years grew of 14% but the average at 1 / 3 and 5 years is around 20%. Every Dividend based portfolio should have some shares of MSFT.
2) NetEase Inc. (NTES)
Description: The Company operates an interactive online community in China and is a major provider of Chinese language content and services through its online games, Internet portal, e-mail and wireless value-added services businesses.
Ratios: NetEase Inc. has a ROC of 320 %, a Return on Equity of 22% and a Return on Assets of 18%.
ROC level reached a 900% in the past and in this moment is at an average level.
Compared to the other companies of Global Internet Content & Information industry, these ratios are better then 90% of NTES competitors.
Financials: The company has a Cash To Debt ratio of 10 and a financial Strenght of 7 out of 10.
Growth: Over the last five years, the company had a steady growth rate (per share).
Revenue : +28%
EBITDA : +23%
Free Cash Flow : +37%
BookValue : +32%
Earnings per share have a growth rate of16% over the last 5 years.
Price: The stock is trading at about $110. The Peter Lynch chart gives a value of 146$ The DCF value gives a price of 166 $.
Currently, the price is at all-time high, down 3% from its 52-week high and up 64% from its 52-week low.
Dividend Yeld: NTES has a dividend yield of 2.37% with ups and downs
3: T. Rowe Price Group Inc (TROW)
Description: The Company is a financial services holding company, which through its subsidiaries, provides investment advisory services to individual and institutional investors in the sponsored T. Rowe Price mutual funds and other investment portfolios.
Ratios: TROW has strong and steady ratios. A ROC of 300%, a Return on Equity of 24% and a Return on Assets of 22%.
These levels are not the best the company ever had, but compared to Global Asset Management Industry, are better then 95% of competitors
Financials: The company has no debts and a financial strength of 9 out of 10
Growth: Over the last five years, the company had a steady growth rate (per share).
Revenue : +15%
EBITDA : +20%
BookValue : +12%
Free Cash Flow : +26%
EPS of the last 3 Years : +13%:
Price: The stock is trading at about $80. The Peter Lynch chart suggest a neutral price of $83. The DCF value gives a price of $71.
Currently, the price is down 5% from its 52-week (and all-time) high and up 16% from its 52-week low.
The Moving Average is at 81$
At the price of 88$ there is a resistance that has already been tested 2 times so far with bad results.
The current price level of TROW is following growing rates, and every ratio is giving an average price of 80$. If growth rate will go on this way, this is a good entry-point. I suggest (even for the long term) to wait for the break-out of 88$
Dividend Yeld: TROW has a growing dividend yield of 2.10%.
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