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Dividend investors hunting for yield. That's not all; they want a stable dividend and to realize a nice increase in stock price. One way to achieve this is to buy a stock for a price under the accounted book value. This is a price which must be paid normally to reproduce the whole company. Well, if the assets of the company have a stable value, the market must correct the current stock price to the level of the book value. A sector which has a huge amount of attractive value is the industrial goods sector.

I screened the industrial goods sector by stocks with a positive dividend yield as well as a price to book ratio of less than 1. Exactly 19 companies fulfilled these criteria, of which 9 have a market capitalization of less than $300 million. In order to exclude the risks of nano- and micro caps, I decided to watch only stocks with a market capitalization of more than $300 million. These are the results:

1. Veolia Environnement (VE) has a market capitalization of $5.94 billion. The company employs 287,043 people, generates revenues of $47,389.96 million and has a net income of $1,194.33 million. The firm’s earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $5,285.06 million. Because of these figures, the EBITDA margin is 11.15 percent (operating margin 6.06 percent and the net profit margin finally 2.52 percent).

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 0.13 and Price/Book ratio 0.54. Dividend Yield: 14.25 percent. The beta ratio is 1.71.

2. M.D.C. Holdings (MDC) has a market capitalization of $864.98Million. The company employs 1,119 people, generates revenues of $958.66 million and has a net income of $-64.77 million. The firm’s earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $-53.42 million. Because of these figures, the EBITDA margin is -5.57 percent (operating margin -6.17 percent and the net profit margin finally -6.76 percent).

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 0.89 and Price/Book ratio 0.86. Dividend Yield: 5.57 percent. The beta ratio is 1.06.

3. CRH (CRH) has a market capitalization of $12.68 billion. The company employs 76,418 people, generates revenues of $23,394.86 million and has a net income of $598.05 million. The firm’s earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $2,061.17 million. Because of these figures, the EBITDA margin is 8.81 percent (operating margin 4.06 percent and the net profit margin finally 2.56 percent).

Here are the price ratios of the company: The P/E ratio is 19.03, Price/Sales 0.57 and Price/Book ratio 0.93. Dividend Yield: 4.77 percent. The beta ratio is 1.13.

4. Gafisa SA (GFA) has a market capitalization of $1.47 billion. The company employs 5,350 people, generates revenues of $2,106.23 million and has a net income of $249.05 million. The company's earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $336.70 million. Because of these figures, the EBITDA margin is 15.99 percent (operating margin 15.08 percent and the net profit margin finally 11.82 percent).

Here are the price ratios of the company: The P/E ratio is 8.85, Price/Sales 0.72 and Price/Book ratio 0.72. Dividend Yield: 4.11 percent. The beta ratio is 2.54.

5. China Yuchai (CYD) has a market capitalization of $499.01 million. The company employs 11,200 people, generates revenues of $2,551.02 million and has a net income of $226.21 million. The firm’s earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $336.34 million. Because of these figures, the EBITDA margin is 13.18 percent (operating margin 12.03 percent and the net profit margin finally 8.87 percent).

Here are the price ratios of the company: The P/E ratio is 3.57, Price/Sales 0.19 and Price/Book ratio 0.62. Dividend Yield: 3.77 percent. The beta ratio is 2.26.

6. Mueller Water Products (MWA) has a market capitalization of $344.30 million. The company employs 4,800 people, generates revenues of $1,339.20 million and has a net income of $-36.10 million. The company's earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $91.60 million. Because of these figures, the EBITDA margin is 6.84 percent (operating margin 0.75 percent and the net profit margin finally -2.70 percent).

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 0.26 and Price/Book ratio 0.92. Dividend Yield: 3.12 percent. The beta ratio is 2.31.

7. Apogee Enterprises (APOG) has a market capitalization of $301.35 million. The company employs 3,555 people, generates revenues of $582.78 million and has a net income of $-14.16 million. The company's earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $7.43 million. Because of these figures, the EBITDA margin is 1.27 percent (operating margin -3.60 percent and the net profit margin finally -2.43 percent).

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 0.51 and Price/Book ratio 0.90. Dividend Yield: 3.10 percent. The beta ratio is 1.86.

8. ITT Corporation (ITT) has a market capitalization of $1.86 billion. The company employs 40,000 people, generates revenues of $10,995.00 million and has a net income of $654.00 million. The company's earnings before interest, taxes, depreciation and amortization [EBITDA] amount to $1,180.00 million. Because of these figures, the EBITDA margin is 10.73 percent (operating margin 8.19 percent and the net profit margin finally 5.95 percent).

Here are the price ratios of the company: The P/E ratio is 2.93, Price/Sales 0.17 and Price/Book ratio 0.41. Dividend Yield: 1.82 percent. The beta ratio is 1.12.

9. AAR Corp. (AIR) has a market capitalization of $771.99 million. The company employs 6,100 people, generates revenues of $1,775.78 million and has a net income of $73.14 million. The company's earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $194.78 million. Because of these figures, the EBITDA margin is 10.97 percent (operating margin 7.82 percent and the net profit margin finally 4.12 percent).

Here are the price ratios of the company: The P/E ratio is 10.25, Price/Sales 0.43 and Price/Book ratio 0.90. Dividend Yield: 1.58 percent. The beta ratio is 1.26.

10. Universal Forest Products (UFPI) has a market capitalization of $543.46 million. The company employs 5,100 people, generates revenues of $1,890.85 million and has a net income of $19.84 million. The company's earnings before interest, taxes, depreciation and amortization [EBITDA] amounts to $67.64 million. Because of these figures, the EBITDA margin is 3.58 percent (operating margin 1.60 percent and the net profit margin finally 1.05 percent).

Here are the price ratios of the company: The P/E ratio is 86.19, Price/Sales 0.28 and Price/Book ratio 0.91. Dividend Yield: 1.49 percent. The beta ratio is 1.37.

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

Source: 10 Industrial Dividend Stocks Trading Under Book Value