Growth is wonderful but makes only sense when the company has a high return on assets.
It's a massive money creating strategy to take cash and upscale a high returning business.
It's a massive money creating strategy to take cash and upscale a high returning business.
Today I've discovered some growth stock ideas with double digit returns on assets and operating margins with low price and debt ratios.
These are my criteria in detail:
- Large Cap
- Positive Dividend Yield
- Debt to Equity under 1
- Expected 5-Year EPS Growth over 5 percent
- Past 5-Year Sales Growth over 5 percent
- Forward P/E under 15
- 10 Percent ROA and Operating Margin
There were exactly 16 stocks that met my tight criteria. I'm also impressed by the sector diversification. A broad range of stocks from completely different industries stopped with these restrictions but technology stocks still dominating my results.
Technology is not the same. There are old-techs and new-tech companies. The first category delivers "commodities" for the following, new companies. Oracle, Microsoft and AT&T are such investments.
Below are my five favorites from the results, you can also find a table with the full results attached. I hope you enjoy my work and get more stock trading ideas. My focus is dividend, value and growth driven.
CNOOC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.183 billion. The EBITDA margin is 47.43 percent (the operating margin is 27.46 percent and the net profit margin 19.75 percent).
Financials: The total debt represents 21.22 percent of CNOOC’s assets and the total debt in relation to the equity amounts to 38.60 percent. Due to the financial situation, a return on equity of 17.34 percent was realized by CNOOC.
Twelve trailing months earnings per share reached a value of $20.35. Last fiscal year, CNOOC paid $9.33 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.68, the P/S ratio is 1.50 and the P/B ratio is finally 1.25. The dividend yield amounts to 4.70 percent and the beta ratio has a value of 1.26.
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| Long-Term Stock Price Chart Of CNOOC (CEO) |
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| Long-Term Dividend Payment History of CNOOC (CEO) |
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| Long-Term Dividend Yield History of CNOOC (CEO) |
Microsoft (NASDAQ:MSFT) has a market capitalization of $387.00 billion. The company employs 128,000 people, generates revenue of $86,833.00 million and has a net income of $22,074.00 million.
Microsoft’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $33,098.00 million. The EBITDA margin is 38.12 percent (the operating margin is 31.85 percent and the net profit margin 25.42 percent).
Financials: The total debt represents 13.14 percent of Microsoft’s assets and the total debt in relation to the equity amounts to 25.22 percent. Due to the financial situation, a return on equity of 26.17 percent was realized by Microsoft.
Twelve trailing months earnings per share reached a value of $2.55. Last fiscal year, Microsoft paid $1.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.39, the P/S ratio is 4.46 and the P/B ratio is finally 4.31. The dividend yield amounts to 2.64 percent and the beta ratio has a value of 0.99.
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| Long-Term Stock Price Chart Of Microsoft (MSFT) |
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| Long-Term Dividend Payment History of Microsoft (MSFT) |
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| Long-Term Dividend Yield History of Microsoft (MSFT) |
Western Digital (NASDAQ:WDC) has a market capitalization of $22.98 billion. The company employs 84,072 people, generates revenue of $15,130.00 million and has a net income of $1,617.00 million.
Western Digital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,182.00 million. The EBITDA margin is 21.03 percent (the operating margin is 11.84 percent and the net profit margin 10.69 percent).
Financials: The total debt represents 15.73 percent of Western Digital’s assets and the total debt in relation to the equity amounts to 27.57 percent. Due to the financial situation, a return on equity of 19.32 percent was realized by Western Digital.
Twelve trailing months earnings per share reached a value of $6.39. Last fiscal year, Western Digital paid $1.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.39, the P/S ratio is 1.52 and the P/B ratio is finally 2.60. The dividend yield amounts to 1.63 percent and the beta ratio has a value of 1.36.
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| Long-Term Stock Price Chart Of Western Digital (WDC) |
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| Long-Term Dividend Payment History of Western Digital (WDC) |
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| Long-Term Dividend Yield History of Western Digital (WDC) |
Precision Castparts (NYSE:PCP) has a market capitalization of $31.66 billion. The company employs 29,100 people, generates revenue of $9,616.00 million and has a net income of $1,766.00 million.
Precision Castparts’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,965.00 million. The EBITDA margin is 30.83 percent (the operating margin is 27.79 percent and the net profit margin 18.37 percent).
Financials: The total debt represents 19.21 percent of Precision Castparts’s assets and the total debt in relation to the equity amounts to 31.36 percent. Due to the financial situation, a return on equity of 16.63 percent was realized by Precision Castparts.
Twelve trailing months earnings per share reached a value of $12.78. Last fiscal year, Precision Castparts paid $0.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.26, the P/S ratio is 3.29 and the P/B ratio is finally 2.81. The dividend yield amounts to 0.05 percent and the beta ratio has a value of 0.93.
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| Long-Term Stock Price Chart Of Precision Castparts (PCP) |
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| Long-Term Dividend Payment History of Precision Castparts (PCP) |
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| Long-Term Dividend Yield History of Precision Castparts (PCP) |
Halliburton (NYSE:HAL) has a market capitalization of $46.73 billion. The company employs 80,000 people, generates revenue of $29,402.00 million and has a net income of $2,116.00 million.
Halliburton’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,185.00 million. The EBITDA margin is 21.04 percent (the operating margin is 10.67 percent and the net profit margin 7.20 percent).
Financials: The total debt represents 26.75 percent of Halliburton’s assets and the total debt in relation to the equity amounts to 57.55 percent. Due to the financial situation, a return on equity of 14.35 percent was realized by Halliburton.
Twelve trailing months earnings per share reached a value of $3.88. Last fiscal year, Halliburton paid $0.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.22, the P/S ratio is 1.59 and the P/B ratio is finally 3.45. The dividend yield amounts to 1.31 percent and the beta ratio has a value of 1.58.
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| Long-Term Stock Price Chart Of Halliburton (HAL) |
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| Long-Term Dividend Payment History of Halliburton (HAL) |
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| Long-Term Dividend Yield History of Halliburton (HAL) |
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| 16 Dividend Paying Growth Stocks with Big Returns on Assets, resarched by long-term-investments.blogspot.com (Click to enlarge) |
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| Performance of Dividend Paying Growth Stocks with Big Returns on Assets, resarched by long-term-investments.blogspot.com (Click to enlarge) |
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*I am long INTC, MSFT, ORCL. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.
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