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Gas utilities are characterized by stable revenues. In addition, the specialized utility industry should benefit from a change in energy policy - away from nuclear power, toward renewable energy. Gas is a bridge technology with lower CO2 emissions than the classical coal power generation. The whole gas utility industry has 32 companies listed, representing a total market capitalization of $144 billion. The average industry dividend yield is 4.1 percent and price to earnings amounts to 22.0. Reason enough to scout for some interesting stocks.

I've tried to summarize the best yielding stock opportunities from the industry. Some companies from the industry have an unsustainable dividend or they are too small to finance further growth. That's why I decided to look only at stocks with a market capitalization above $2 billion. 13 more mid-capitalized companies are available. In addition, there are only 5 with low forward price to earnings ratios (under 15). These are the detailed results:

1. Sempra Energy (SRE) has a market capitalization of $13.83 billion. The company employs 13,504 people, generates revenues of $9,003.00 million and has a net income of $684.00 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,225.00 million. Because of these figures, the EBITDA margin is 24.71 percent (operating margin 15.08 percent and the net profit margin finally 7.60 percent).

The total debt representing 31.33 percent of the company's assets and the total debt in relation to the equity amounts to 103.94 percent. Due to the financial situation, a return on equity of 8.20 percent was realized. Twelve trailing months earnings per share reached a value of $5.57. Last fiscal year, the company paid $1.56 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.36, forward P/E 12.93, Price/Sales 1.55 and Price/Book ratio 1.55. Dividend Yield: 3.30 percent. The beta ratio is 0.54.

2. Integrys Energy Group (TEG) has a market capitalization of $4.07 billion. The company employs 4,612 people, generates revenues of $5,203.20 million and has a net income of $223.50 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $693.90 million. Because of these figures, the EBITDA margin is 13.34 percent (operating margin 8.23 percent and the net profit margin finally 4.30 percent).

The total debt representing 26.98 percent of the company's assets and the total debt in relation to the equity amounts to 89.57 percent. Due to the financial situation, a return on equity of 7.67 percent was realized. Twelve trailing months earnings per share reached a value of $3.32. Last fiscal year, the company paid $2.72 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 15.65, forward P/E 14.55, Price/Sales 0.78 and Price/Book ratio 1.38. Dividend Yield: 5.24 percent. The beta ratio is 0.85.

3. Atmos Energy Corporation (ATO) has a market capitalization of $2.92 billion. The company employs 4,949 people, generates revenues of $4,347.63 million and has a net income of $198.88 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $669.00 million. Because of these figures, the EBITDA margin is 15.39 percent (operating margin 10.16 percent and the net profit margin finally 4.57 percent).

The total debt representing 33.16 percent of the company's assets and the total debt in relation to the equity amounts to 107.07 percent. Due to the financial situation, a return on equity of 8.88 percent was realized. Twelve trailing months earnings per share reached a value of $2.16. Last fiscal year, the company paid $1.36 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 14.94, forward P/E 12.94, Price/Sales 0.68 and Price/Book ratio 1.32. Dividend Yield: 4.18 percent. The beta ratio is 0.51.

4. AmeriGas Partners (APU) has a market capitalization of $2.44 billion. The company employs 5,460 people, generates revenues of $2,537.96 million and has a net income of $140.92 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $284.43 million. Because of these figures, the EBITDA margin is 11.21 percent (operating margin 8.07 percent and the net profit margin finally 5.55 percent).

The total debt representing 57.30 percent of the company's assets and the total debt in relation to the equity amounts to 303.85 percent. Due to the financial situation, a return on equity of 36.92 percent was realized. Twelve trailing months earnings per share reached a value of $1.94. Last fiscal year, the company paid $2.89 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 22.00, forward P/E 14.40, Price/Sales 1.50 and Price/Book ratio 7.50. Dividend Yield: 6.93 percent. The beta ratio is 0.41.

5. AGL Resources (GAS) has a market capitalization of $4.89 billion. The company employs 2,621 people, generates revenues of $2,373.00 million and has a net income of $250.00 million. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $660.00 million. Because of these figures, the EBITDA margin is 27.81 percent (operating margin 21.07 percent and the net profit margin finally 10.54 percent).

The total debt representing 35.98 percent of the company's assets and the total debt in relation to the equity amounts to 149.20 percent. Due to the financial situation, a return on equity of 13.03 percent was realized. Twelve trailing months earnings per share reached a value of $2.60. Last fiscal year, the company paid $1.76 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 16.12, forward P/E 13.30, Price/Sales 2.08 and Price/Book ratio 1.82. Dividend Yield: 4.26 percent. The beta ratio is 0.45.

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

Source: 5 Cheap Gas Utilities With Good Dividends