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One often hears a company's PE ratio referenced more often than its P/CFO ratio. Yet the P/CFO ratio in some ways offers a clearer picture of how a firm is actually performing. This is due to the fact that the P/CFO ratio focuses on actual cash being generated by the firm relative to the stock price. In particular, one advantage of using any CFO related ratio deals with the reality that its more difficult to manipulate than earnings. A firm is considered to be offering more “value” when the ratio is lower.

We ran a screen on dividend stocks that had a Price/CFO ratio of less than 10. From this pool we screened for companies that recently had poor performance within the last month (X=-30%).

The list is ranked from lowest to highest Price/CFO ratio. Short interest as of July 15.

Bank of America Corporation (BAC)

Sector

Financial Services

Industry

Banks - Regional - US

Market Cap

$ 68,609M

Beta

2.45

Analyst Sentiment

17/34 – List Buy/ Outperform (Bullish)

One of the largest US banks in the US by branches and assets, the firm provides asset management, credit cards, and more. The firm’s Price/CFO ratio is 0.72. The company’s one month return is -36.73%. The short interest for the firm is 1.20%.

2. Barclays PLC (BCS)

Sector

Financial Services

Industry

Banks - Global

Market Cap

$ 173M

Beta

2.80

Analyst Sentiment

17/34 – List Buy/ Outperform (Bullish)

A UK bank that is primarily involved in investment banking, asset management, and risk management. The firm’s Price/CFO ratio is 0.79. The company’s one month return is -32.44%.

Regions Financial Corporation (RF)

Sector

Financial Services

Industry

Banks - Regional - US

Market Cap

$ 27,690M

Beta

1.15

Analyst Sentiment

20/25 – List Hold/Neutral (Neutral)

The company offers a variety of financial services within the banking space. The firm’s Price/CFO ratio is 1.25. The company’s one-month return is -31.22%. The short interest for the firm is 2.70%.

Synovus Financial Corp (SNV)

Sector

Financial Services

Industry

Banks - Regional - US

Market Cap

$ 989M

Beta

0.99

Analyst Sentiment

20/27– List Hold/Neutral (Neutral)

The company offers integrated financial services. The firm’s Price/CFO ratio is 1.31. The company’s one-month return -39.61%. The short interest for the firm is 8.50%.

Veolia Environnement (VE)

Sector

Industrials

Industry

Waste Management

Market Cap

$ 7,078M

Beta

1.86

Analyst Sentiment

10/24 – List Buy/ Outperform (Bullish)

The company offers a variety of waste management services. The firm’s Price/CFO ratio is 1.40. The company’s one-month return is -46.84%.

Navios Maritime Holdings Inc (NM)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$ 323M

Beta

2.89

Analyst Sentiment

5/6 – List Buy/ Outperform (Bullish)

The company operates a fleet of dry bulk ships that transport commodities. The firm’s Price/CFO ratio is 1.68. The company’s one-month return is -38.01%. The short interest for the firm is 1.60%.

Frontline, Ltd. (FRO)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$ 557M

Beta

1.38

Analyst Sentiment

10/25 – List Hold/Neutral (Neutral)

The company operates a fleet of ships that primarily transports oil. The firm’s Price/CFO ratio is 1.80. The company’s one-month return is -46.29%. The short interest for the firm is 22.20%. Given the short number this company may be a short favorite or potentially a great short squeeze.

SunTrust Banks Inc (STI)

Sector

Financial Servicesfro

Industry

Banks - Regional - US

Market Cap

$ 9,497M

Beta

1.43

Analyst Sentiment

21/35 – List Hold / Neutral (Neutral)

The company offers a variety of banking and other financial services. The firm’s Price/CFO ratio is 1.82. The company’s one month return -31.09%. The short interest for the firm is 1.10%.

Assured Guaranty Ltd. (AGO)

Sector

Financial Services

Industry

Insurance - Specialty

Market Cap

$ 1,829M

Beta

2.59

Analyst Sentiment

4/7 – List Buy / Outperform (Bullish)

The company provides, through subsidiaries, credit-enhancing products. The firm’s Price/CFO ratio is 1.93. The company’s one-month return is -40.75%. The short interest for the firm is 4.30%.

Telephone and Data Systems, Inc. (TDS)

Sector

Communication Services

Industry

Telecom Services

Market Cap

$ 2,234M

Beta

0.71

Analyst Sentiment

6/8 – List Hold / Neutral (Neutral)

The company operates a variety of wireless and wireline operations along with other telecommunication services. The firm’s Price/CFO ratio is 1.95. The company’s one-month return is -32.12%. The short interest for the firm is 6.20%.

We hope this helps investors as they do their own due diligence on dividend stocks that now look cheaper and more appealing relative to their P/CFO ratio.

Source: 10 Oversold, High Cash Flow Dividend Stocks Offering Better Opportunity