Cheapest Large Caps With Highest Expected Growth As Of August 2012

 | Aug 23, 2012 07:40AM ET

Cheapest Large Capitalized Stocks With Highest Earnings Per Share Growth By Dividend Yield – Stock, Capital, Investment. Here is a current sheet of America’s cheapest Large Caps with the highest expected growth for the upcoming fiscal year. Stocks from the sheet have a market capitalization of more than USD 10 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 15 and a P/S and P/B ratio of less than two. Twenty-one companies fulfilled the mentioned criteria of which thirteen companies have a buy or better recommendation. Eighteen pay dividends.

The best yielding stock is now Energy Transfer Partners (ETP) with a yield of 8.41 percent. The company is followed by China Petroleum & Chemical (SNP) with a yield of 5.02 percent and Dow Chemical (DOW) whose yield is 4.24 percent.

The Dow Chemical (NYSE:MS ) has a market capitalization of $29.36 billion. The company employs 58,627 people, generates revenue of $39,310.00 million and has a net income of $4,696.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,518.00 million. The EBITDA margin is 19.12 percent (operating margin 15.55 percent and net profit margin 11.95 percent).

Financial Analysis: The total debt represents 26.07 percent of the company’s assets and the total debt in relation to the equity amounts to 315.05 percent. Due to the financial situation, a return on equity of 3.91 percent was realized. Twelve trailing months earnings per share reached a value of $1.23. Last fiscal year, the company paid $0.20 in form of dividends to shareholders. Earnings are expected to grow by 115.56 percent for the upcoming year and 12.70 percent for the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.12, P/S ratio 0.75 and P/B ratio 0.47.

Dividend Yield: 1.35 percent. The beta ratio is 1.60.