9 Cheapest S&P 500 Stocks

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Includes: ANTM, DO, GLW, HPQ, LLL, NRG, SUNEQ, TRV, WDC
by: Dividend Screen

Finding the lowest prices doesn’t always mean that you get the cheapest products, but it could be a good way to start looking for real bargains. Today, I am going to screen the S&P 500 by the cheapest stocks. The index includes 500 of the biggest public companies in the U.S. stock market. A popular metric for cheap stocks is the price to earnings ratio (P/E ratio). The ratio shows how the company is valuated in relation to the net income. A value of 15 means the investor pays 15 times of the net income. This is also the time which is needed to get the investment amortized. A regular one-year P/E ratio of less than 15 is pretty attractive. One with less than 10 gets me very interested. So when we see five-year P/E ratios of less than 10, it's definitely worth looking further. Here are the 10 lowest five-year P/E ratios in the S&P 500.

1. NRG Energy (NRG) has a market capitalization of $4.72 billion. The company employs 4,964 people, generates revenues of $8,849.00 million and has a net income of $476.00 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,146.00 million. Because of these figures, the EBITDA margin is 24.25 percent (operating margin 14.78 percent and the net profit margin finally 5.38 percent).

The total debt representing 34.25 percent of the company’s assets and the total debt in relation to the equity amounts to 110.94 percent. Due to the financial situation, the return on equity amounts to 6.00 percent.

Here are the price ratios of the company: The P/E ratio is 17.59, Price/Sales 0.54 and Price/Book ratio 0.64. Dividend Yield: None. The beta ratio is 0.78. The 5-Year P/E ratio amounts to 6.8.

2. The Travelers Companies (TRV) has a market capitalization of $23.21 billion. The company employs 32,000 people, generates revenues of $25, or 112.00 million and has a net income of $3,216.00 million. TRV's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,496.00 million. Because of these figures, the EBITDA margin is 33.83 percent (operating margin 17.15 percent and the net profit margin is finally 12.81 percent).

The total debt, representing 6.29 percent of the company’s assets, and the total debt in relation to the equity amounts to 25.95 percent. Due to the financial situation, the return on equity amounts to 12.09 percent.

Here are the price ratios of the company: The P/E ratio is 14.85, Price/Sales 0.92 and Price/Book ratio 0.95. Dividend Yield: 2.94 percent. The beta ratio is 0.70. The 5-Year P/E ratio amounts to 7.0.

3. WellPoint (WLP) has a market capitalization of $23.84 billion. The company employs 37,500 people, generates revenues of $58,801.80 million and has a net income of $2,887.10 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,277.20 million. Because of these figures, the EBITDA margin is 8.97 percent (operating margin 8.12 percent and the net profit margin finally 4.91 percent).

The total debt representing 17.85 percent of the company’s assets and the total debt in relation to the equity amounts to 37.60 percent. Due to the financial situation, the return on equity amounts to 11.86 percent.

Here are the price ratios of the company: The P/E ratio is 8.99, Price/Sales 0.40 and Price/Book ratio 1.08. Dividend Yield: 1.46 percent. The beta ratio is 0.97. The 5-Year P/E ratio amounts to 7.2.

4. Diamond Offshore Drilling (DO) has a market capitalization of $8.73 billion. The company employs 5,300 people, generates revenues of $3,322.97 million and has a net income of $955.46 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,818.55 million. Because of these figures, the EBITDA margin is 54.73 percent (operating margin 42.89 percent and the net profit margin finally 28.75 percent).

The total debt, representing 22.23 percent of the company’s assets, and the total debt in relation to the equity amounts to 38.73 percent. Due to the financial situation, the return on equity amounts to 25.50 percent.

Here are the price ratios of the company: The P/E ratio is 8.60, Price/Sales 2.68 and Price/Book ratio 2.31. Dividend Yield: 0.78 percent. The beta ratio is 0.92. The 5-Year P/E ratio amounts to 8.0.

5. Western Digital (WDC) has a market capitalization of $6.09 billion. The company employs 65,431 people, generates revenues of $9,526.00 million and has a net income of $726.00 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,383.00 million. Because of these figures, the EBITDA margin is 14.52 percent (operating margin 8.20 percent and the net profit margin finally 7.62 percent).

The total debt, representing 3.62 percent of the company’s assets, and the total debt in relation to the equity amounts to 5.36 percent. Due to the financial situation, the return on equity amounts to 14.24 percent.

Here are the price ratios of the company: The P/E ratio is 8.00, Price/Sales 0.62 and Price/Book ratio 1.07. Dividend Yield: None. The beta ratio is 1.31. The 5-Year P/E ratio amounts to 7.1.

6. L-3 Communications (LLL) has a market capitalization of $6.66 billion. The company employs 63,000 people, generates revenues of $15,680.00 million and has a net income of $966.00 million. LLL's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,963.00 million. Because of these figures, the EBITDA margin is 12.52 percent (operating margin 11.05 percent and the net profit margin finally 6.16 percent).

The total debt, representing 26.77 percent of the company’s assets, and the total debt in relation to the equity amounts to 61.16 percent. Due to the financial situation, the return on equity amounts to 14.25 percent.

Here are the price ratios of the company: The P/E ratio is 7.64, Price/Sales 0.43 and Price/Book ratio 1.07. Dividend Yield: 2.69 percent. The beta ratio is 0.94. The 5-Year P/E ratio amounts to 7.6.

7. Corning Incorporated (GLW) has a market capitalization of $23.57 billion. The company employs 26,200 people, generates revenues of $6,632.00 million and has a net income of $3,556.00 million. GLW's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,623.00 million. Because of these figures, the EBITDA margin is 39.55 percent (operating margin 26.67 percent and the net profit margin finally 53.62 percent).

The total debt, representing 8.98 percent of the company’s assets, and the total debt in relation to the equity amounts to 11.97 percent. Due to the financial situation, the return on equity amounts to 20.37 percent.

Here are the price ratios of the company: The P/E ratio is 7.10, Price/Sales 3.45 and Price/Book ratio 1.17. Dividend Yield: 2.06 percent. The beta ratio is 1.42. The 5-Year P/E ratio amounts to 7.4.

8. Hewlett-Packard Company (HPQ) has a market capitalization of $55.62 billion. The company employs 324,600 people, generates revenues of $126,033.00 million and has a net income of $8,761.00 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,963.00 million. Because of these figures, the EBITDA margin is 10.29 percent (operating margin 9.11 percent and the net profit margin finally 6.95 percent).

The total debt representing 17.91 percent of the company’s assets and the total debt in relation to the equity amounts to 55.14 percent. Due to the financial situation, the return on equity amounts to 21.64 percent.

Here are the price ratios of the company: The P/E ratio is 6.58, Price/Sales 0.43 and Price/Book ratio 1.49. Dividend Yield: 1.76 percent. The beta ratio is 1.13. The 5-Year P/E ratio amounts to 6.7.

9. MEMC Electronic Materials (WFR) has a market capitalization of $1.00 billion. The company employs 5,600 people, generates revenues of $2,239.20 million and has a net income of $40.80 million. WFR's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $185.90 million. Because of these figures, the EBITDA margin is 8.30 percent (operating margin 0.94 percent and the net profit margin finally 1.82 percent).

The total debt representing 14.80 percent of the company’s assets and the total debt in relation to the equity amounts to 30.32 percent. Due to the financial situation, the return on equity amounts to 1.56 percent.

Here are the price ratios of the company: The P/E ratio is not calculable, Price/Sales 0.45 and Price/Book ratio 0.44. Dividend Yield: None. The beta ratio is 1.37. The 5-Year P/E ratio amounts to 4.0.

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