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Do you consider yourself a value investor? If so, we researched a list of undervalued dividend stocks you may be interested in. Additionally, we looked for encouraging fundamental trends by analyzing the financials of the companies.

We began by screening for dividend stocks: those paying dividend yields above 1% and sustainable payout ratios below 50%. We then screened for those that have outperformed the market over the last quarter, with quarterly performance above 10%.

We further analyzed our list of companies for profitability by performing DuPont analysis on the names. Learn more about DuPont here. We took only the companies seeing positive trends in the sources of their increasing profitability.

We then analyzed the financials to look for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables, the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

Our final list consisted of 4 companies.

The List:

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

These stocks have several encouraging statistics. Use the list below as a starting point for your detailed analysis.

1. American States Water Company (NYSE:AWR): Provides water, electric, and contracted services in the United States.

  • Market cap at $978.11M, most recent closing price at $50.80.
  • MRQ net profit margin at 13.98% vs. 13.03% y/y. MRQ sales/assets at 0.104 vs. 0.1 y/y. MRQ assets/equity at 2.873 vs. 2.952 y/y.
  • Revenue grew by 11.54% during the most recent quarter ($133.52M vs. $119.71M y/y). Accounts receivable grew by -25.19% during the same time period ($41.64M vs. $55.66M y/y). Receivables, as a percentage of current assets, decreased from 34.75% to 22.26% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).
  • Dividend yield at 2.8%, payout ratio at 45%. Performance over the last quarter at 18%.

2. Belo Corp. (NYSE:BLC): Operates as a television company.

  • Market cap at $801.73M, most recent closing price at $8.84.
  • MRQ net profit margin at 14.08% vs. 9.02% y/y. MRQ sales/assets at 0.106 vs. 0.096 y/y. MRQ assets/equity at 5.409 vs. 5.749 y/y.
  • Revenue grew by 15.97% during the most recent quarter ($176.27M vs. $152M y/y). Accounts receivable grew by -17.27% during the same time period ($134.92M vs. $163.08M y/y). Receivables, as a percentage of current assets, decreased from 71.78% to 42.02% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).
  • Dividend yield at 3.6%, payout ratio at 38%. Performance over the last quarter at 20%.

3. Corrections Corporation of America (NYSE:CXW): Operates privatized correctional and detention facilities in the United States.

  • Market cap at $3.76B, most recent closing price at $37.82.
  • MRQ net profit margin at 9.52% vs. 9.08% y/y. MRQ sales/assets at 0.15 vs. 0.147 y/y. MRQ assets/equity at 1.989 vs. 2.145 y/y.
  • Revenue grew by 2.94% during the most recent quarter ($444.85M vs. $432.14M y/y). Accounts receivable grew by -8.27% during the same time period ($239.23M vs. $260.79M y/y). Receivables, as a percentage of current assets, decreased from 74.79% to 72.44% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).
  • Dividend yield at 2.12%, payout ratio at 26%. Performance over the last quarter at 10.10%.

4. Equifax Inc. (NYSE:EFX): Collects, organizes and manages various financial, demographic, employment and marketing information solutions for businesses and consumers.

  • Market cap at $7.05B, most recent closing price at $59.52.
  • MRQ net profit margin at 14.32% vs. 13.6% y/y. MRQ sales/assets at 0.151 vs. 0.14 y/y. MRQ assets/equity at 1.94 vs. 1.989 y/y.
  • Revenue grew by 10.91% during the most recent quarter ($543.9M vs. $490.4M y/y). Accounts receivable grew by 7.65% during the same time period ($296.9M vs. $275.8M y/y). Receivables, as a percentage of current assets, decreased from 64.11% to 49.02% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).
  • Dividend yield at 1.2%, payout ratio at 29%. Performance over the last quarter at 19%.

*EPS and BVPS data sourced from Yahoo Finance, all other data sourced from Finviz.

Source: 4 Outperforming Dividend Stocks With Strong Profitability And Top-Line Growth