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Jim Cramer is one of my favorite stock pickers on the street for all times. He entertains while presenting his show, and he is pretty good at stock picking. I have been writing about his Lightning Round and Mad Money picks for a while, and I am glad to see that my articles are drawing quite a bit of attention. In Sep 15’s Lightning Round program, Cramer made nine calls. Six of them were bullish, and the other three bearish. I have investigated all of these stocks from a fundamental perspective, adding my opinion about them. I have applied my O-Metrix Grading System where possible. Here is a fundamental analysis of these stocks from Cramer's Sep. 15 Lightning Round:

Stock Name


Cramer's Suggestion

O-Metrix Score

My Take

Texas Instruments





Cliffs Natural




Long-Term Buy

P.F. Chang’s China





Yum! Brands





Chipotle Mexican Grill





Alumina Limited










Total SA




Buy Later

American Capital Agency


Do Not Buy Now


Risky Buy

Cramer likes Texas Instruments’ big dividend boost it gave on Thursday, and he made a bullish call on it. The company has a P/E ratio of 10.5, and a forward P/E ratio of 11.7, as of Sep 16. Five-year annual EPS growth forecast is 10.8%. With a profit margin of 22.2%, it offers a 1.88% dividend.

Institutions hold 82.46% of the stock, while it is trading 23.45% lower than its 52-week high. O-Metrix score is 5.71. Target price indicates a 14.5% increase potential, whereas it returned 11.2% in a year. Texas Instruments has zero debts for the last five years. Gross margin and operating margin are 52.4% and 30.3%, respectively. While ROE is 30.39%, ROA is 21.45%. Debt-to equity ratio is 0.3, lower than the industry average of 0.5. Moreover, the company has a four-star rating from Morningstar. I wouldn’t ignore this stock.

I've been long on this stock [Cliffs Natural] for the last 20 points, and I was right for the 20 points before that Cramer commented.

Cliffs Natural was trading at an admirable P/E ratio of 7.2, and a forward P/E ratio of 5.1, as of the Sep 15 close. Analysts estimate a 10.0% annualized EPS growth for the next five years. Profit margin (26.3%) crushes the industry average of 4.7%, while it paid a 1.41% dividend last year.

Earnings increased by 52.30% this quarter, and 359.33% this year. Institutions own 87.08% of the shares. O-Metrix score of the company is 9.27, whereas it returned 22.5% in the last twelve months. Operating margin is 33.8%. ROA, ROE, and ROI are 15.67%, 35.41% and 22.76%, respectively. PEG value is 0.5. Average analyst rating for Cliffs Natural is 1.2 (1=Buy, 3=Sell). Target price is $123.91, which implies a 58.9% upside potential. Debt-to equity ratio is 0.7, far better than the industry average of 2.7. Cliffs Natural is trading 23.53% lower than its 52-week high. Moreover, the company significantly boosted its dividends. I guess this stock will outperform in the long run.

Instead of P.F. Chang’s China Bistro, Cramer would rather go with Yum! Brands and Chipotle. Here is a brief comparison between these three stocks:

Current as of Sep.16 close.

P.F. Chang’s China

Yum! Brands


P/E ratio




Forward P/E ratio




Estimated EPS growth for the next 5 years




Dividend yield




Profit margin




Gross margin




Upside movement potential




I eliminate Chipotle at first, as it is truly poor in terms of P/E- forward P/E ratios, upside potential, and O-Metrix score. I like their food, but the stock is expensive. Chang’s China is trading 44.02% lower than its 52-week high, whereas Yum! is trading 7.13% lower than its 52-week high. Chang’s China returned -35.8% in a year, while Yum! returned 17.1%. O-Metrix scores of Chang and Yum! are 5.51 and 5.74, respectively. Both of their debt-to assets ratios are decreasing for the last three years. Chang looks like a good buy. Holding Yum! is okay.

Cramer is bearish on Alumina: "I have enough problems with Alcoa, which I own for my charitable trust,” However, he is still bullish on Alcoa. Here is a brief comparison between these two stocks:

Current as of Sep.16 close.



P/E ratio



Forward P/E ratio



Estimated EPS growth for the next 5 years


3.0% (Morningstar), 70.43% (Finviz)

Dividend yield



Profit margin



Gross margin



Upside movement potential



Alumina is currently trading 43.99% lower than its 52-week high, while Alcoa is trading 35.76% lower. O-Metrix scores of Alumina and Alcoa are 2.32 and 4.97 (based on market derived estimation of Alcoa’s five-year annual EPS growth, 10.0%), respectively. Alumina returned -10.5% in a year, whereas Alcoa returned 5.6%. Alcoa is a much better buy when compared to Alumina.

Cramer believes that the 7.19% dividend of Total SA is sustainable, and he is bullish on this stock. The Paris-based oil& gas company shows a remarkable trailing P/E ratio of 6.4, and a forward P/E ratio of 5.9, as of Sep 16. Estimated annual EPS growth for the next five years is 2.0%. Although dividend yield (7.5%) is slightly better than the industry average of 7.1%, it pays an enjoyable dividend of 7.19%.

Earnings increased by 24.24% this year, and the stock returned -10.8% in a year. The debt-to assets ratio is nearly stable for the last five quarters, and O-Metrix score is 7.47. Total SA is currently trading 26.81% lower than its 52-week high, whereas its target price indicates an about 33.3% upside movement potential. Debt-to equity ratio is 0.3, way better than the industry average of 0.6. P/E ratio, P/B (1.2), P/S (0.5), ROE (18.9%), and debt- to equity ratio are moderate green flags. Total SA is one of the ten big oil dividends to watch. European stocks are suffering from the Euro-zone crisis, and this stock is no exception. However, I would keep an eye on it.

I've given up ... the stock [American Capital Agency] won't come in. I am going to say 'don't buy,' but that said, it has been a huge winner.

American Capital, as of Sep 16, was trading at a pretty low trailing P/E ratio of 4.6, and a forward P/E ratio of 5.6. American Capital, is a real estate investment trust (REIT). Similar to other REITs, the company is utilizing the difference between long-term and short-term interest rates to maximize its profits. It pays a gorgeous dividend of 18.76%, while the profit margin (92.8%) crushes the industry average of 12.9%.Latest dividend declaration date was Sep. 14, where the stock will go ex-dividend on Sep. 21st.

American Capital has an O-Metrix score of 19.96, and it is trading only 2.04% lower than its 52-week high. Target price is $31.16, which implies a 4.8% upside potential. The stock returned 1.8% in a year. Insider transactions have increased by 38.02% in the last six months, while sales rose by 423.29% this quarter. ROE and ROI are 18.30% and 17.90%, respectively. While SMA200 is 7.47%, SMA50 is 2.98%. P/E ratio, P/B (1.1), P/S (4.2), profit margin, ROE, are strong green flags. 11 out of 16 analysts recommend buying, and I agree with them.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Ideas By Cramer: 6 Buy, 3 Sell Ideas