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Accounts receivable represents a big portion of revenue for many companies, but as the name implies, these funds are not yet “received.” This can therefore be an area of concern.

When accounts receivable becomes a larger percentage of the revenues reported by a company, it indicates lower quality revenues because there is no guarantee that accounts receivable will be paid back in full. Companies with shrinking accounts receivable (relative to revenue) are viewed favorably.

We ran a screen on large-cap materials stocks for those with positive receivable and revenue trends: increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable, and a decrease in quarterly accounts receivable as a percent of quarterly current assets year-over-year.

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

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


(Click to enlarge)

Do you think these companies have healthy operations? Use this list as a starting-off point for your own analysis.

List sorted by difference between change in revenue and accounts receivable.

1. Marathon Oil Corporation (NYSE:MRO): Operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. Market cap of $14.47B. MRQ revenue has increased 33.14% ($3,865M vs. $2,903M y/y) while MRQ accounts receivable has decreased 63.35% ($1,843M vs. $5,028M y/y). Accounts receivable/current assets has decreased from 44.65% to 25.20%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. Might be undervalued at current levels, with a PEG ratio at 0.82, and P/FCF ratio at 4.15. It's been a rough couple of days for the stock, losing 12.74% over the last week.

2. Compania de Minas Buenaventura SA (NYSE:BVN): Engages in the exploration, mining, processing, and development of gold, silver, and other metals in Peru. Market cap of $10.30B. MRQ revenue has increased 52.31% ($343.28M vs. $225.38M y/y) while MRQ accounts receivable has increased 15.52% ($196.06M vs. $169.72M y/y). Accounts receivable/current assets has decreased from 23.85% to 19.17%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is currently stuck in a downtrend, trading 16.18% below its SMA20, 15.74% below its SMA50, and 13.55% below its SMA200. It's been a rough couple of days for the stock, losing 7.3% over the last week.

3. EOG Resources, Inc. (NYSE:EOG): Engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad, Tobago, the United Kingdom, and the People's Republic of China. Market cap of $18.38B. MRQ revenue has increased 89.27% ($2,570.25M vs. $1,357.97M y/y) while MRQ accounts receivable has increased 55.49% ($1,307.43M vs. $840.83M y/y). Accounts receivable/current assets has decreased from 43.88% to 35.94%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 10.79% over the last week.

4. Statoil ASA (NYSE:STO): Engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products. Market cap of $65.91B. MRQ revenue has increased 30.29% ($168,765M vs. $129,526M y/y) while MRQ accounts receivable has increased 3.61% ($67,956M vs. $65,587M y/y). Accounts receivable/current assets has decreased from 54.80% to 38.43%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has performed poorly over the last month, losing 13.51%.

5. Cenovus Energy Inc. (NYSE:CVE): Engages in the development, production, and marketing of bitumen, crude oil, natural gas, and natural gas liquids (NGLs) in Canada with refining operations in the United States. Market cap of $22.18B. MRQ revenue has increased 29.57% ($4,009M vs. $3,094M y/y) while MRQ accounts receivable has increased 3.65% ($1,137M vs. $1,097M y/y). Accounts receivable/current assets has decreased from 38.22% to 38.08%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 5.46% over the last week.

6. Chemical & Mining Co. of Chile Inc. (NYSE:SQM): Engages in the production and sale of fertilizers and specialty chemicals in Chile and internationally. Market cap of $12.21B. MRQ revenue has increased 23.56% ($480.04M vs. $388.52M y/y) while MRQ accounts receivable has decreased 1.41% ($446.19M vs. $452.58M y/y). Accounts receivable/current assets has decreased from 28.86% to 25.41%, comparing 3 months ending 2011-03-31 to 3 months ending 2010-03-31. The stock is currently stuck in a downtrend, trading 5.69% below its SMA20, 5.69% below its SMA50, and 5.69% below its SMA200.

7. Suncor Energy Inc. (NYSE:SU): Operates as an integrated energy company. Market cap of $37.78B. MRQ revenue has increased 13.31% ($9,587M vs. $8,461M y/y) while MRQ accounts receivable has decreased 0.0% ($5,229M vs. $5,229M y/y). Accounts receivable/current assets has decreased from 47.82% to 43.19%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is currently stuck in a downtrend, trading 17.82% below its SMA20, 25.86% below its SMA50, and 40.15% below its SMA200. It's been a rough couple of days for the stock, losing 10.35% over the last week.

8. Monsanto Co. (NYSE:MON): Provides agricultural products for farmers in the United States and internationally. Market cap of $32.14B. MRQ revenue has increased 21.20% ($3,590M vs. $2,962M y/y) while MRQ accounts receivable has increased 9.54% ($4,319M vs. $3,943M y/y). Accounts receivable/current assets has decreased from 49.91% to 48.06%, comparing 3 months ending 2011-05-31 to 3 months ending 2010-05-31. The stock is currently stuck in a downtrend, trading 7% below its SMA20, 10.07% below its SMA50, and 11.49% below its SMA200. It's been a rough couple of days for the stock, losing 7.45% over the last week.

9. Schlumberger Limited (NYSE:SLB): Supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $77.89B. MRQ revenue has increased 61.16% ($9,650M vs. $5,988M y/y) while MRQ accounts receivable has increased 50.08% ($9,356M vs. $6,234M y/y). Accounts receivable/current assets has decreased from 50.97% to 46.92%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is currently stuck in a downtrend, trading 16.86% below its SMA20, 25.05% below its SMA50, and 32.42% below its SMA200. It's been a rough couple of days for the stock, losing 8.77% over the last week.

10. Total SA (NYSE:TOT): Operates as an integrated oil and gas company worldwide. Market cap of $99.37B. MRQ revenue has increased 11.39% ($40,465M vs. $36,327M y/y) while MRQ accounts receivable has increased 0.41% ($18,267M vs. $18,193M y/y). Accounts receivable/current assets has decreased from 31.34% to 30.86%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has performed poorly over the last month, losing 11.88%.

11. Kinross Gold Corporation (NYSE:KGC): Engages in mining and processing gold ores. Market cap of $16.10B. MRQ revenue has increased 41.80% ($987.8M vs. $696.6M y/y) while MRQ accounts receivable has increased 31.44% ($257.1M vs. $195.6M y/y). Accounts receivable/current assets has decreased from 12.94% to 10.68%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is currently stuck in a downtrend, trading 19.23% below its SMA20, 20.07% below its SMA50, and 18.42% below its SMA200. It's been a rough couple of days for the stock, losing 7.2% over the last week.

12. Air Products & Chemicals Inc. (NYSE:APD): Provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. Market cap of $15.74B. MRQ revenue has increased 14.45% ($2,577.8M vs. $2,252.3M y/y) while MRQ accounts receivable has increased 6.11% ($1,960.3M vs. $1,847.5M y/y). Accounts receivable/current assets has decreased from 62.72% to 59.83%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 5.62% over the last week.

13. Eni SpA (NYSE:E): Engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. Market cap of $67.67B. MRQ revenue has increased 7.77% ($24,953M vs. $23,154M y/y) while MRQ accounts receivable has decreased 0.47% ($22,180M vs. $22,285M y/y). Accounts receivable/current assets has decreased from 66.74% to 66.45%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has performed poorly over the last month, losing 12.1%.

14. Arcelor Mittal (NYSE:MT): Engages in the production and marketing of steel worldwide. Market cap of $24.19B. MRQ revenue has increased 24.67% ($25,126M vs. $20,154M y/y) while MRQ accounts receivable has increased 17.09% ($8,625M vs. $7,366M y/y). Accounts receivable/current assets has decreased from 21.93% to 21.49%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. This is a risky stock that is significantly more volatile than the overall market (beta = 2.11). The stock has performed poorly over the last month, losing 27.16%.

15. Devon Energy Corporation (NYSE:DVN): Engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. Market cap of $22.22B. MRQ revenue has increased 44.27% ($3,220M vs. $2,232M y/y) while MRQ accounts receivable has increased 37.10% ($1,652M vs. $1,205M y/y). Accounts receivable/current assets has decreased from 23.87% to 18.54%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is currently stuck in a downtrend, trading 12.75% below its SMA20, 19.56% below its SMA50, and 32.76% below its SMA200. It's been a rough couple of days for the stock, losing 7.12% over the last week.

16. Vale S.A. (NYSE:VALE): Engages in the exploration, production, and sale of basic metals in Brazil. Market cap of $114.11B. MRQ revenue has increased 55.20% ($14,989M vs. $9,658M y/y) while MRQ accounts receivable has increased 48.24% ($10,595M vs. $7,147M y/y). Accounts receivable/current assets has decreased from 37.78% to 33.45%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is currently stuck in a downtrend, trading 16.41% below its SMA20, 21.08% below its SMA50, and 30.61% below its SMA200. It's been a rough couple of days for the stock, losing 9.07% over the last week.

17. ConocoPhillips (NYSE:COP): Operates as an integrated energy company worldwide. Market cap of $83.74B. MRQ revenue has increased 33.58% ($66,961M vs. $50,127M y/y) while MRQ accounts receivable has increased 27.34% ($16,805M vs. $13,197M y/y). Accounts receivable/current assets has decreased from 49.49% to 48.46%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is currently stuck in a downtrend, trading 7.06% below its SMA20, 9.33% below its SMA50, and 15.14% below its SMA200. The stock has performed poorly over the last month, losing 10.27%.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 17 Large-Cap Materials Stocks With Encouraging Receivable Trends