The Net Profit Margin is a great profitability Ratio to review right off the bat when looking at a company. While it won’t give investors a definitive answer on a company’s future potential it will give investors a good idea on how profitable its operations are. This profitability Ratio specifically illustrates how much of each dollar earned is translated into profits. A company that can expand its net margin should be rewarded with a higher stock price because this leads to higher profitability.
We ran a screen for companies that outperformed the market last week and hold a sound Net Margin TTM (X>5%). From this narrowed pool we then screened for firm’s with a book value of less than 1.
The list is ranked from highest to lowest by 1-Week Performance.
1. NewStar Financial, Inc. (NEWS)
Sector | Financial Services |
Industry | Credit Services |
Market Cap | $422M |
Beta | 2.76 |
Analyst Sentiment | 1/1-List Hold/Neutral (Neutral) |
The company offers customized debt financing solutions in the US. The company's 1-week performance is 1.82%. NEWS’s P/BV Ratio is .75. The Net Margin (TTM) is 22.95%. The short interest is 4% as of 8/15/2011.
2. Cathay General Bancorp (CATY)
Sector | Financial Services |
Industry | Banks - Regional - US |
Market Cap | $907M |
Beta | 0.98 |
Analyst Sentiment | 11/14-List Hold/Neutral (Neutral) |
The company operates Cathay Bank, which offers commercial banking products and services. The 1-Week performance is 1.05%. CATY’s P/BV Ratio is .74. The Net Margin (TTM) is 18.82%. The short interest is 7% as of 8/15/2011.
3. DryShips, Inc. (DRYS)
Sector | Industrials |
Industry | Shipping & Ports |
Market Cap | $1066M |
Beta | 3.38 |
Analyst Sentiment | 8/15-List Buy/Outperform (Bullish) |
The company owns and operates drybulk carriers and drilling rigs worldwide. The 1-Week performance is 0.74%. DRY’s P/BV Ratio is .31. The Net Margin (TTM) is 21.31%. The short interest is 5% as of 8/15/2011.
4. Shinhan Financial Group Co. (SHG)
Sector | Financial Services |
Industry | Banks - Regional - Asia |
Market Cap | $19319M |
Beta | 1.97 |
Analyst Sentiment | 22/28-List Buy/Outperform (Bullish) |
The company offers financial products and services to a variety of customers in Korea and beyond. The 1-Week performance is .72%. SHG’s P/BV Ratio is 0.84. The Net Margin (TTM) is 23.76%. The short interest is N/A as of 8/15/2011.
5. Tessera Technologies, Inc. (TSRA)
Sector | Technology |
Industry | Semiconductor Equipment & Materials |
Market Cap | $667M |
Beta | 1.32 |
Analyst Sentiment | 2/3-List Buy/Outperform (Bullish) |
The company develops and sells miniaturization products and technologies for electronic devices worldwide. The 1-Week performance is 0%. TSRA’s P/BV Ratio is .94. The Net Margin (TTM) is 18.38%. The short interest is 4% as of 8/15/2011.
6. Diana Shipping, Inc. (DSX)
Sector | Industrials |
Industry | Shipping & Ports |
Market Cap | $659M |
Beta | 1.56 |
Analyst Sentiment | 10/19-List Buy/Outperform (Bullish) |
The company operates dry bulk carriers around the world. The 1-Week performance is -.25%. DSX’s P/BV Ratio is .57. The Net Margin (TTM) is 45.49%. The short interest is 3% as of 8/15/2011.
7. Basic Sanitation Company of the State of Sao Paulo (SBS)
Sector | Utilities |
Industry | Utilities - Regulated Water |
Market Cap | $5847M |
Beta | 1.35 |
Analyst Sentiment | 4/9-List Hold/Neutral (Neutral) |
The company provides water and sewage to a variety of customers in the State of Sao Paulo, Brazil. The 1-Week performance is -.33%. SBS’s P/BV Ratio is .95. The Net Margin (TTM) is 16.17%. The short interest is N/A as of 8/15/2011.
8. Molson Coors Brewing Company (TAP)
Sector | Consumer Defensive |
Industry | Beverages – Brewers |
Market Cap | $8029M |
Beta | 0.72 |
Analyst Sentiment | 8/12-List Hold/Neutral (Neutral) |
The company brews and distributes beer brands. The 1-Week performance is -.88%. TAP’s P/BV Ratio is .99. The Net Margin (TTM) is 20.14%. The short interest is 2% as of 8/15/2011.
9. Banco Santander Brasil SA/Braz (BSBR)
Sector | Financial Services |
Industry | Banks - Regional - Latin America |
Market Cap | $33330M |
Beta | 1.1 |
Analyst Sentiment | 8/12-List Buy/Outperform (Bullish) |
The company operates as a full-service bank in Brazil. The 1-Week performance is -1.02%. BSBR’s P/BV Ratio is .82. The Net Margin (TTM) is 27.86%. The short interest is N/A as of 8/15/2011.
10. United Microelectronics Corp. (UMC)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $4711M |
Beta | 1.06 |
Analyst Sentiment | 16/25-List Hold/Neutral (Neutral) |
The company operates as a semiconductor wafer foundry. The 1-Week performance is -1.05%. UMC’s is P/BV Ratio is .62. The Net Margin (TTM) is 19.11%. The short interest is N/A as of 8/15/2011.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
