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The price/cash flow ratio is a price-multiple valuation metric that also measures a firm’s future financial health. An advantage of using cash flow is that it removes non-cash factors, which helps provide a clearer picture of how much money the firm is taking in from a valuation standpoint.

Earnings per share growth (1-fiscal year) provides a good idea of earnings growth over an extended period of time. This metric helps identify which firms are increasing or decreasing relative to profitability. EPS growth is thought to be a key driver for a company’s share price given its correlation to firm profitability.

We ran a screen for companies, which have substantially retraced from their 52-week highs and hold a P/CFO ratio of less than 10. From this narrowed pool we then screened for firms that had an EPS growth rate (1-year fiscal) of at least 10% or greater.

The price/CFO ratio ranks the list from lowest to highest:

Barclays PLC. (NYSE:BCS)

Sector

Financial Services

Industry

Banks - Global

Market Cap

$28,157 million

Beta

2.84

The company offers investment banking, asset management, and risk management services. The firm has a 1-year fiscal EPS growth rate of 25.55%. BCS’s P/CFO ratio is 0.71.The firm is 57.40 % below its 52-week high. The short interest was N/A as of 08/31/2011.

Bbva Banco Frances,S.A.(NYSE:BFR)

Sector

Financial Services

Industry

Banks - Regional - Latin America

Market Cap

$1,100 million

Beta

1.68

The company offers general banking services to corporate and retail services. The firm has a 1-year fiscal EPS growth rate of 51.70%. BFR’s P/CFO ratio is 1.13.The firm is 55.60% below its 52-week high. The short interest was N/A as of 08/31/2011.

Community Health Systems Inc. (NYSE:CYH)

Sector

Healthcare

Industry

Medical Care

Market Cap

$1,592 million

Beta

1.58

The company owns and leases acute care hospitals in non-urban communities. The firm has a 1-year fiscal EPS growth rate of 14.02%. CYH’s P/CFO ratio is 1.28.The firm is 59.81 % below its 52-week high. The short interest was 4.70% as of 08/31/2011.

Cosan Ltd. (NYSE:CZZ)

Sector

Consumer Defensive

Industry

Farm Products

Market Cap

$2,764 million

Beta

2.09

The company is a sugar and ethanol in Brazil. The firm has a 1-year fiscal EPS growth rate of 40.80%. CZZ’s P/CFO ratio is 1.62.The firm is 30.73 % below its 52-week high. The short interest was N/A as of 08/31/2011.

James River Coal Company. (JRCC)

Sector

Basic Materials

Industry

Coal

Market Cap

$276 million

Beta

2.08

The company mines and sells bituminous, steam, and industrial-grade coal within the US. The firm has a 1-year fiscal EPS growth rate of 52.43%. JRCC’s P/CFO ratio is 1.65.The firm is 71.40 % below its 52-week high. The short interest was N/A as of 08/31/2011.

Aflac Inc. (NYSE:AFL)

Sector

Financial Services

Industry

Insurance - Life

Market Cap

$15,505 million

Beta

1.99

The company is a holding firm that operates subsidiaries that sell supplemental health and life insurance. The firm has a 1-year fiscal EPS growth rate of 55.17%. AFL’s P/CFO ratio is 1.88.The firm is 44.26 % below its 52-week high. The short interest was 1.70% as of 08/31/2011.

Navios Maritime Holdings Inc. (NYSE:NM)

Sector

Industrials

Industry

Shipping & Ports

Market Cap

$337 million

Beta

2.84

The company operates a fleet of ships that transport bulk commodities. The firm has a 1-year fiscal EPS growth rate of 90.77%. NM’s P/CFO ratio is 1.88.The firm is 47.38 % below its 52-week high. The short interest was 1.70% as of 08/31/2011.

Assured Guaranty Ltd. (NYSE:AGO)

Sector

Financial Services

Industry

Insurance - Specialty

Market Cap

$1,872 million

Beta

2.53

The company offers credit structured finance, enhancement products, and mortgage market services. The firm has a 1-year fiscal EPS growth rate of 286.67%. AGO’s P/CFO ratio is 1.97.The firm is 54.44 % below its 52-week high. The short interest was N/A as of 08/31/2011.

SLM Corp. (NASDAQ:SLM)

Sector

Financial Services

Industry

Credit Services

Market Cap

$6,516 million

Beta

1.32

The company originates and holds student loans in the United States. The firm has a 1-year fiscal EPS growth rate of 27.06%. SLM’s P/CFO ratio is 1.98.The firm is 25.95 % below its 52-week high. The short interest was 1.90% as of 08/31/2011.

Boyd Gaming Corporation. (NYSE:BYD)

Sector

Consumer Cycl

Industry

Resorts & Casinos

Market Cap

$465 million

Beta

2.57

The company is a gaming company. The firm has a 1-year fiscal EPS growth rate of 140.00%. BYD’s P/CFO ratio is 2.01.The firm is 57.82 % below its 52-week high. The short interest was N/A as of 08/31/2011.

We hope this list helps investors as they do their own due diligence on companies with low P/CFO ratio’s while continuing to grow their EPS.

Source: 10 Cheap Stocks Below Their Recent Highs