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In this series, a significant range of key ratios will be provided; we will pick one of the plays as our favourite and provide some reasons for our choice. In doing so we hope to impart some knowledge to those who are new to the field of dividend investing. A lot of ratios will be used in this article, and it would be best for investors to get a handle on some of these ratios, as they could prove to be very useful in the selection process. Some of the more important key ratios are listed below. A significant portion of the historical data used in this article was obtained from zacks.com.

Long-term debt-to-equity ratio is the total long term debt divided by the total equity. The amount of long-term debt a company carries on its balances sheet is very important for it indicates the amount of money a company owes that it doesn't expect to pay off in the next year. A balance sheet that illustrates that long term debt has been decreasing for a few years is a sign that the company is doing well. When debt levels fall, and cash levels increase the balance sheet is said to be improving and vice versa. If a company has too much debt on its books, it could end up being overwhelmed with interest payments and risk having too little working capital which could in the worst case scenario lead to bankruptcy.

Levered free cash flow is the amount of cash available to stock holders after interest payments on debt are made. A company with a small amount of debt will only have to spend a modest amount of money on interest payments, which in turn means that there is more money to send to shareholders in the form of dividends and vice versa.

The payout ratio tells us what portion of the profit is being returned to investors. A payout ratio over 100% indicates that the company is paying out more money to shareholders than they are making; this situation cannot last forever. In general if the company has a high operating cash flow and access to capital markets, they can keep this going on for a while. As companies usually only pay the portion of the debt that is coming due and not the whole debt, this technique/trick can technically be employed to maintain the dividend for sometime. If the payout ratio continues to increase, the situation warrants close monitoring. If your tolerance for risk is a low, look for similar companies with the same or higher yields, but with lower payout ratios. Individuals searching for other ideas might find this article to be of interest: Linn Energy: A Long-Term Independent Oil And Gas Dividend play

Interest coverage is usually calculated by dividing the earnings before interest and taxes for a period of 1 year by the interest expenses for the same time period. This ratio informs you of a company's ability to make its interest payments on its outstanding debt. Lower interest coverage ratios indicate that there is a larger debt burden on the company and vice versa. For example, if a company has an interest ratio of 11.8, this means that it covers interest expenses 11.8 times with operating profits.

Turnover Ratio lets you know the number of times a company's inventory is replaced in a given time period. It is calculated by dividing the cost of goods sold by average inventory during the time period studied. A high turn over ratio indicates that a company is producing and selling its good and services very quickly.

Debt to Equity Ratio is found by dividing the company's total amount of long-term debt (debts with interest rates that have a maturity longer than one year) by the total amount of equity. A debt to equity ratio of 0.5 tells us that the company is using 50 cents of liabilities in addition to each $1 dollar of shareholders equity in the business. There is no fixed ideal number as it depends on the industry the company is in. However, in general a ratio under 1 is acceptable and ideally it should be in the 0.5-0.6 ranges.

Current Ratio is obtained by dividing the current assets by current liabilities. This ratio allows you to see if the company can pay its current debts without potentially jeopardizing their future earnings. Ideally the company should have a ratio of 1 or higher.

Price to sales ratio is calculated by dividing the company's share price by its revenue per share. Generally, the smaller the ratio (less than 1.0) the better the investment since the investor is paying less for each unit of sales.

Quick ratio or acid -test is obtained by adding cash and cash equivalents plus marketable securities and accounts receivable dividing them by current liabilities. It is a measure of a company's ability to use its quick assets (assets that can be sold of immediately at close to book value) to pay off its current liabilities immediately. A company with a quick ratio of less than 1 cannot pay back its current liabilities. Additional key metrics are addressed in this article: 5 Interesting Long-Term Dividend Plays

We generally base our choice on the following factors:

Net income: it should be generally trending upwards for the past 3-4 years.

Total cash flow from operating activities: it also should be trending upwards for the past 3-4 years.

Payout ratio: it should generally be below 100%, but a ratio below 70% is optimal. Payout ratios are not that important when it comes to MLPs/REITs as they generally pay a majority of their cash flow as distributions; in the case of REITs by law they have to pay out 90% of their cash flow as dividends. Payout ratios are calculated by dividing the dividend/distribution rate by the net income per share, and this is why the payout ratio for MLPs and REITs is often higher than 100%. The more important ratio to focus on is the cash flow per unit. If one focuses on the cash flow per unit, one will see that in most cases, it exceeds the distribution/dividend declared per unit/share.

Current ratio: should be above 1.

Interest coverage ratio: any value above 1.5 is okay, but we would aim for 2.5-3.00 as our starting range. The higher the number the better.

Dividend growth rate: it should be at 5% or higher. A high yield with a low dividend growth rate is not good in the long run, but neither is a low dividend yield with a high growth rate; one needs to find an equilibrium here.

Five year dividend average: we generally aim for stocks that have a yield of 4.5% or higher. There are exceptions to this rule. Some stocks appreciate very fast, so even though the yield might be low, one can more than make up the difference through capital gains. One example is JAH.

Sales: they should generally be trending upwards for the past 3-4 years.

Levered free cash flow: this is the icing on the cake; if a company meets most of the above requirements and also has a positive levered free cash flow; it can generally be viewed as a good long term buy. Two examples are LEG and PG.

An early warning signal that the company could be in trouble is when the total cash flow generated from operating expenses is not enough to meet the dividend payments. This information can be gleaned by looking at the cash flow statement; this is readily available at Yahoo Finance. In the example below, we used LEG, and the data was obtained from Yahoo Finance.

The cash flow in this case was more than enough to easily cover all the dividend payments for all the above years; in this the time period was from 2008-2010.

Many traders use other metrics and that is fine; we are just trying to provide a guideline. As you get better handle of the ratios explained below you can create your own list of criteria.

Piedmont Nat Ga (NYSE:PNY) is our favorite play on this list for the following reasons:

  • Net income has generally been trending up for the past few years.
  • Cash flow per share has also been generally trending upwards.
  • It has an average five year dividend growth rate of 4%
  • A manageable payout ratio of 73%
  • A 5 year average payout ratio of 70%
  • It has a positive levered free cash flow of $3.5 million.
  • It has a good interest coverage ratio of 8.79.
  • It has a free cash flow yield of 2.94%
  • EPS is expected to grow to $1.65 in 2012 and to the $1.72-$.175 ranges, in 2013.
  • I00k invested for 10 years would have grown to 243K.
  • On the negative side, it low current and quick ratios of 0.54 and 0.92 respectively are troubling. We would pay attention to the operating cash flow, net income and interest coverage ratio. If there are big changes here going forward we would abandon this stock and look for a replacement?

Company: Piedmont Nat Gas

Levered Free Cash Flow = 3.53M

Basic Key ratios

  • Percentage Held by Insiders = 1.2
  • Market Cap ($mil) = 2356
  • Number of Institutional Sellers 12 Weeks = N/A
  • 3 Month % Chg Short Interest = n/a

Growth

  • Net Income ($mil) 12/2011 = 114
  • Net Income ($mil) 12/2010 = 142
  • Net Income ($mil) 12/2009 = 123
  • 12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = -20
  • Q Net Incm this Q/ same qtr yr ago = -5.21
  • EBITDA ($mil) 12/2011 = 337
  • EBITDA ($mil) 12/2010 = 380
  • EBITDA ($mil) 12/2009 = 354
  • Net Incm Rpt Qtr ($mil) = -10
  • Anl Net Incm this Yr/ Net Incm last Yr = -20
  • Cash Flow ($/sh) 12/2011 = 3.06
  • Cash Flow ($/sh) 12/2010 = 2.97
  • Cash Flow ($/sh) 12/2009 = 3.08
  • Div 5yr Growth 12/2011 = 3.85
  • Sales ($mil) 12/2011 = 1434
  • Sales ($mil) 12/2010 = 1552
  • Sales ($mil) 12/2009 = 1638

Dividend history

  • Div Yield = 3.56
  • Div Yld 5 Yr Avg 12/2011 = 3.96
  • Div Yld 5 Yr Avg 09/2011 = 3.96
  • Annual Dividend 12/2011 = 1.15
  • Annual Dividend 12/2010 = 1.11
  • Forward Yield = 3.56
  • Div 5yr Growth 12/2011 = 3.85
  • R-squared Div Growth 12/2011 = 0.96
  • R-squared Div Growth 09/2011 = 0.97

Dividend sustainability

  • Payout Ratio 09/2011 = 0.73
  • Payout Ratio 06/2011 = N/A
  • Payout Ratio 5 Yr Avg 12/2011 = 0.7
  • Payout Ratio 5 Yr Avg 09/2011 = 0.7
  • Payout Ratio 5 Yr Avg 06/2011 = N/A
  • Change in Payout Ratio = 0.04

Performance

  • % Ch Price 52 Wks Rel to S&P 500 = 6.04
  • Std Dev Target Price Est = 1.97
  • Avg EPS Surprise Last 4 Qtr = -2.86
  • EPS % Change F2/F1 = 7.27
  • Next 3-5 Yr Est EPS Gr rate = 4.67
  • Std Dev 3-5 Yr Est EPS Gr rate = 0.58
  • EPS Gr Q(1)/Q(-3) = -112.21
  • 5 Yr Hist EPS Gr 12/2011 = N/A
  • 5 Yr Hist EPS Gr 09/2011 = N/A

  • ROE 5 Yr Avg 12/2011 = 11.88
  • ROE 5 Yr Avg 09/2011 = 11.85
  • ROE 5 Yr Avg 06/2011 = N/A
  • Return on Investment 12/2011 = 6.91
  • Return on Investment 09/2011 = 6.97
  • Return on Investment 06/2011 = N/A
  • Debt/Tot Cap 5 Yr Avg 12/2011 = 43.92
  • Debt/Tot Cap 5 Yr Avg 09/2011 = 44.31
  • Debt/Tot Cap 5 Yr Avg 06/2011 = N/A
  • Current Ratio 12/2011 = 0.54
  • Current Ratio 09/2011 = 0.74
  • Current Ratio 06/2011 = N/A
  • Curr Ratio 5 Yr Avg = 0.92
  • Quick Ratio = 0.36
  • Cash Ratio = 0.22
  • Interest Coverage 12/2011 = 8.79
  • Interest Coverage 09/2011 = 0.24
  • Interest Coverage 06/2011 = N/A

Valuation

  • Book Value Qtr ($/sh) 12/2011 = 13.81
  • Book Value Qtr ($/sh) 09/2011 = 14.2
  • Book Value Qtr ($/sh) 06/2011 = N/A
  • Anl EPS before NRI 12/2007 = 1.4
  • Anl EPS before NRI 12/2008 = N/A
  • Anl EPS before NRI 12/2009 = 1.67
  • Anl EPS before NRI 12/2010 = 1.54
  • Anl EPS before NRI 12/2011 = 1.57
  • Price/ Book = 2.36
  • Price/ Cash Flow = 10.66
  • Price/ Sales = 1.64
  • EV/EBITDA 12 Mo = 8.98
  • P/E/G F1 = 4.22
  • Q1 Std Dev/ Consensus = 0.01
  • R-squared EPS Growth 12/2011 = N/A
  • R-squared EPS Growth 09/2011 = N/A
  • P/E F1/ LT EPS Gr = 4.22
  • Std Dev Cons Current Qtr = 0.01
  • Median Est Next Qtr = -0.11
  • # Anlst in Cons Q3 = 3

Company: Vectren Corp (NYSE:VVC)

Levered Free Cash Flow = 103.09M

Basic Key ratios

  • Percentage Held by Insiders = 1.16
  • Market Cap ($mil) = 2402
  • Number of Institutional Sellers 12 Weeks = N/A
  • 3 Month % Chg Short Interest = n/a

Growth

  • Net Income ($mil) 12/2011 = 142
  • Net Income ($mil) 12/2010 = 134
  • Net Income ($mil) 12/2009 = 133
  • 12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = 5.91
  • Q Net Incm this Q/ same qtr yr ago = 2.64
  • EBITDA ($mil) 12/2011 = 579
  • EBITDA ($mil) 12/2010 = 542
  • EBITDA ($mil) 12/2009 = 509
  • Net Incm Rpt Qtr ($mil) = 47
  • Anl Net Incm this Yr/ Net Incm last Yr = 5.91
  • Cash Flow ($/sh) 12/2011 = 4.72
  • Cash Flow ($/sh) 12/2010 = 4.44
  • Cash Flow ($/sh) 12/2009 = 4.4
  • Div 5yr Growth 12/2011 = 2.19
  • Sales ($mil) 12/2011 = 2325
  • Sales ($mil) 12/2010 = 2130
  • Sales ($mil) 12/2009 = 2089

Dividend history

  • Div Yield = 4.77
  • Div Yld 5 Yr Avg 12/2011 = 5.12
  • Div Yld 5 Yr Avg 09/2011 = 5.1
  • Annual Dividend 12/2011 = 1.39
  • Annual Dividend 12/2010 = 1.37
  • Forward Yield = 4.77
  • Div 5yr Growth 12/2011 = 2.19
  • R-squared Div Growth 12/2011 = 0.93
  • R-squared Div Growth 09/2011 = 0.93

Dividend sustainability

  • Payout Ratio 09/2011 = 0.8
  • Payout Ratio 06/2011 = 0.93
  • Payout Ratio 5 Yr Avg 12/2011 = 0.78
  • Payout Ratio 5 Yr Avg 09/2011 = 0.78
  • Payout Ratio 5 Yr Avg 06/2011 = 0.78
  • Change in Payout Ratio = 0.03

Performance

  • % Ch Price 52 Wks Rel to S&P 500 = 5.72
  • Std Dev Target Price Est = 1
  • Avg EPS Surprise Last 4 Qtr = 11.07
  • EPS % Change F2/F1 = 6.1
  • Next 3-5 Yr Est EPS Gr rate = 4.33
  • Std Dev 3-5 Yr Est EPS Gr rate = 0.58
  • EPS Gr Q(1)/Q(-3) = -100
  • 5 Yr Hist EPS Gr 12/2011 = -2.5
  • 5 Yr Hist EPS Gr 09/2011 = -2.06
  • ROE 5 Yr Avg 12/2011 = 10.19
  • ROE 5 Yr Avg 09/2011 = 10.22
  • ROE 5 Yr Avg 06/2011 = 10.29
  • Return on Investment 12/2011 = 4.68
  • Return on Investment 09/2011 = 4.7
  • Return on Investment 06/2011 = 4.08
  • Debt/Tot Cap 5 Yr Avg 12/2011 = 51.13
  • Debt/Tot Cap 5 Yr Avg 09/2011 = 51.09
  • Debt/Tot Cap 5 Yr Avg 06/2011 = 51.1
  • Current Ratio 12/2011 = 0.88
  • Current Ratio 09/2011 = 0.89
  • Current Ratio 06/2011 = 0.8
  • Curr Ratio 5 Yr Avg = 0.77
  • Quick Ratio = 0.65
  • Cash Ratio = 0.33
  • Interest Coverage 12/2011 = 4.04
  • Interest Coverage 09/2011 = 3.07
  • Interest Coverage 06/2011 = 1.94

Valuation

  • Book Value Qtr ($/sh) 12/2011 = 17.9
  • Book Value Qtr ($/sh) 09/2011 = 17.76
  • Book Value Qtr ($/sh) 06/2011 = 17.7
  • Anl EPS before NRI 12/2007 = 1.96
  • Anl EPS before NRI 12/2008 = 1.71
  • Anl EPS before NRI 12/2009 = 1.79
  • Anl EPS before NRI 12/2010 = 1.64
  • Anl EPS before NRI 12/2011 = 1.73
  • Price/ Book = 1.64
  • Price/ Cash Flow = 6.22
  • Price/ Sales = 1.03
  • EV/EBITDA 12 Mo = 6.83
  • P/E/G F1 = 3.61
  • Q1 Std Dev/ Consensus = N/A
  • R-squared EPS Growth 12/2011 = 0.29
  • R-squared EPS Growth 09/2011 = 0.18
  • P/E F1/ LT EPS Gr = 3.61
  • Std Dev Cons Current Qtr = N/A
  • Median Est Next Qtr = 0.26
  • # Anlst in Cons Q3 = 1

Company: Washington Reit (NYSE:WRE)

Levered Free Cash Flow = N/A

Basic Key ratios

  • Percentage Held by Insiders = 0.63
  • Market Cap ($mil) = 1970
  • Number of Institutional Sellers 12 Weeks = 4
  • 3 Month % Chg Short Interest = n/a

Growth

  • Net Income ($mil) 12/2011 = 105
  • Net Income ($mil) 12/2010 = 37
  • Net Income ($mil) 12/2009 = 41
  • 12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = 180.24
  • Q Net Incm this Q/ same qtr yr ago = 189.77
  • EBITDA ($mil) 12/2011 = N/A
  • EBITDA ($mil) 12/2010 = 188
  • EBITDA ($mil) 12/2009 = 202
  • Net Incm Rpt Qtr ($mil) = 31
  • Anl Net Incm this Yr/ Net Incm last Yr = 181.59
  • Cash Flow ($/sh) 12/2011 = 1.4
  • Cash Flow ($/sh) 12/2010 = 1.86
  • Cash Flow ($/sh) 12/2009 = 2.09
  • Div 5yr Growth 12/2011 = 0.73
  • Sales ($mil) 12/2011 = 290
  • Sales ($mil) 12/2010 = 298
  • Sales ($mil) 12/2009 = 307

Dividend history

  • Div Yield = 5.82
  • Div Yld 5 Yr Avg 12/2011 = 5.83
  • Div Yld 5 Yr Avg 09/2011 = 5.71
  • Annual Dividend 12/2011 = 1.74
  • Annual Dividend 12/2010 = 1.73
  • Forward Yield = 5.82
  • Div 5yr Growth 12/2011 = 0.73
  • R-squared Div Growth 12/2011 = 0.6
  • R-squared Div Growth 09/2011 = 0.66

Dividend sustainability

  • Payout Ratio 09/2011 = 0.91
  • Payout Ratio 06/2011 = 0.9
  • Payout Ratio 5 Yr Avg 12/2011 = 0.81
  • Payout Ratio 5 Yr Avg 09/2011 = 0.8
  • Payout Ratio 5 Yr Avg 06/2011 = 0.8
  • Change in Payout Ratio = 0.11

Performance

  • % Ch Price 52 Wks Rel to S&P 500 = -7.14
  • Std Dev Target Price Est = 0.5
  • Avg EPS Surprise Last 4 Qtr = -3.09
  • EPS % Change F2/F1 = 3.67
  • Next 3-5 Yr Est EPS Gr rate = N/A
  • Std Dev 3-5 Yr Est EPS Gr rate = N/A
  • EPS Gr Q(1)/Q(-3) = 102.08
  • 5 Yr Hist EPS Gr 12/2011 = -4.44
  • 5 Yr Hist EPS Gr 09/2011 = -3.7
  • ROE 5 Yr Avg 12/2011 = 2.83
  • ROE 5 Yr Avg 09/2011 = 3.58
  • ROE 5 Yr Avg 06/2011 = 4.33
  • Return on Investment 12/2011 = -4.52
  • Return on Investment 09/2011 = -4.24
  • Return on Investment 06/2011 = 1.59
  • Debt/Tot Cap 5 Yr Avg 12/2011 = 19.46
  • Debt/Tot Cap 5 Yr Avg 09/2011 = 19.55
  • Debt/Tot Cap 5 Yr Avg 06/2011 = 20.38
  • Current Ratio 12/2011 = 0.25
  • Current Ratio 09/2011 = 0.1
  • Current Ratio 06/2011 = 0.11
  • Curr Ratio 5 Yr Avg = 0.12
  • Quick Ratio = 0.25
  • Cash Ratio = 0.19
  • Interest Coverage 12/2011 = N/A
  • Interest Coverage 09/2011 = 1.39
  • Interest Coverage 06/2011 = 1.45

Valuation

  • Book Value Qtr ($/sh) 12/2011 = 13.06
  • Book Value Qtr ($/sh) 09/2011 = 13.02
  • Book Value Qtr ($/sh) 06/2011 = 12.48
  • Anl EPS before NRI 12/2007 = 2.31
  • Anl EPS before NRI 12/2008 = 2.12
  • Anl EPS before NRI 12/2009 = 2.14
  • Anl EPS before NRI 12/2010 = 1.96
  • Anl EPS before NRI 12/2011 = 1.95
  • Price/ Book = 2.28
  • Price/ Cash Flow = 21.37
  • Price/ Sales = 6.41
  • EV/EBITDA 12 Mo = 12.6
  • P/E/G F1 = N/A
  • Q1 Std Dev/ Consensus = 0.02
  • R-squared EPS Growth 12/2011 = 0.67
  • R-squared EPS Growth 09/2011 = 0.52
  • P/E F1/ LT EPS Gr = N/A
  • Std Dev Cons Current Qtr = 0.01
  • Median Est Next Qtr = 0.48
  • # Anlst in Cons Q3 = 7

Company: Mdu Resources (NYSE:MDU)

Levered Free Cash Flow = 49.64M

Basic Key ratios

  • Percentage Held by Insiders = 1.65
  • Market Cap ($mil) = 4144
  • Number of Institutional Sellers 12 Weeks = N/A
  • 3 Month % Chg Short Interest = n/a

Growth

  • Net Income ($mil) 12/2011 = 213
  • Net Income ($mil) 12/2010 = 241
  • Net Income ($mil) 12/2009 = -123
  • 12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = -11.47
  • Q Net Incm this Q/ same qtr yr ago = -31.46
  • EBITDA ($mil) 12/2011 = N/A
  • EBITDA ($mil) 12/2010 = 778
  • EBITDA ($mil) 12/2009 = 195
  • Net Incm Rpt Qtr ($mil) = 61
  • Anl Net Incm this Yr/ Net Incm last Yr = -11.49
  • Cash Flow ($/sh) 12/2011 = 3.02
  • Cash Flow ($/sh) 12/2010 = 3.04
  • Cash Flow ($/sh) 12/2009 = 3.15
  • Div 5yr Growth 12/2011 = 3.89
  • Sales ($mil) 12/2011 = 4051
  • Sales ($mil) 12/2010 = 3910
  • Sales ($mil) 12/2009 = 4177

Dividend history

  • Div Yield = 3.05
  • Div Yld 5 Yr Avg 12/2011 = 2.73
  • Div Yld 5 Yr Avg 09/2011 = 2.68
  • Annual Dividend 12/2011 = 0.66
  • Annual Dividend 12/2010 = 0.64
  • Forward Yield = 3.05
  • Div 5yr Growth 12/2011 = 3.89
  • R-squared Div Growth 12/2011 = 0.87
  • R-squared Div Growth 09/2011 = 0.87

Dividend sustainability

  • Payout Ratio 09/2011 = 0.54
  • Payout Ratio 06/2011 = 0.51
  • Payout Ratio 5 Yr Avg 12/2011 = 0.41
  • Payout Ratio 5 Yr Avg 09/2011 = 0.39
  • Payout Ratio 5 Yr Avg 06/2011 = 0.38
  • Change in Payout Ratio = 0.16

Performance

  • % Ch Price 52 Wks Rel to S&P 500 = -1.48
  • Std Dev Target Price Est = 1.11
  • Avg EPS Surprise Last 4 Qtr = 2.39
  • EPS % Change F2/F1 = 14.41
  • Next 3-5 Yr Est EPS Gr rate = 7
  • Std Dev 3-5 Yr Est EPS Gr rate = 2.65
  • EPS Gr Q(1)/Q(-3) = 102.5
  • 5 Yr Hist EPS Gr 12/2011 = -10.37
  • 5 Yr Hist EPS Gr 09/2011 = -9.42
  • ROE 5 Yr Avg 12/2011 = 11.76
  • ROE 5 Yr Avg 09/2011 = 12.12
  • ROE 5 Yr Avg 06/2011 = 12.48
  • Return on Investment 12/2011 = 5.49
  • Return on Investment 09/2011 = 5.51
  • Return on Investment 06/2011 = 5.85
  • Debt/Tot Cap 5 Yr Avg 12/2011 = 35.17
  • Debt/Tot Cap 5 Yr Avg 09/2011 = 35.19
  • Debt/Tot Cap 5 Yr Avg 06/2011 = 35.47
  • Current Ratio 12/2011 = N/A
  • Current Ratio 09/2011 = 1.48
  • Current Ratio 06/2011 = 1.48
  • Curr Ratio 5 Yr Avg = 1.48
  • Quick Ratio = 1.19
  • Cash Ratio = 0.43
  • Interest Coverage 12/2011 = 6.6
  • Interest Coverage 09/2011 = 6.2
  • Interest Coverage 06/2011 = 4.26

Valuation

  • Book Value Qtr ($/sh) 12/2011 = N/A
  • Book Value Qtr ($/sh) 09/2011 = 14.7
  • Book Value Qtr ($/sh) 06/2011 = 14.36
  • Anl EPS before NRI 12/2007 = 1.76
  • Anl EPS before NRI 12/2008 = 2.05
  • Anl EPS before NRI 12/2009 = 1.4
  • Anl EPS before NRI 12/2010 = 1.29
  • Anl EPS before NRI 12/2011 = 1.19
  • Price/ Book = 1.5
  • Price/ Cash Flow = 7.28
  • Price/ Sales = 1.02
  • EV/EBITDA 12 Mo = 6.92
  • P/E/G F1 = 2.69
  • Q1 Std Dev/ Consensus = 0.12
  • R-squared EPS Growth 12/2011 = 0.67
  • R-squared EPS Growth 09/2011 = 0.6
  • P/E F1/ LT EPS Gr = 2.69
  • Std Dev Cons Current Qtr = 0.03
  • Median Est Next Qtr = 0.21
  • # Anlst in Cons Q3 = 4

Company: Banco Santan Sa (STD)

Levered Free Cash Flow = N/A

Basic Key ratios

  • Percentage Held by Insiders = 9.48
  • Market Cap ($mil) = 75103
  • Number of Institutional Sellers 12 Weeks = N/A
  • 3 Month % Chg Short Interest = n/a

Growth

  • Net Income ($mil) 12/2011 = 7050
  • Net Income ($mil) 12/2010 = 12086
  • Net Income ($mil) 12/2009 = 13126
  • 12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = -28.33
  • Q Net Incm this Q/ same qtr yr ago = -97.62
  • EBITDA ($mil) 12/2011 = N/A
  • EBITDA ($mil) 12/2010 = 39499
  • EBITDA ($mil) 12/2009 = 33418
  • Net Incm Rpt Qtr ($mil) = 62
  • Anl Net Incm this Yr/ Net Incm last Yr = -41.67
  • Cash Flow ($/sh) 12/2011 = N/A
  • Cash Flow ($/sh) 12/2010 = 1.61
  • Cash Flow ($/sh) 12/2009 = 1.83
  • Div 5yr Growth 12/2011 = 3.91
  • Sales ($mil) 12/2011 = N/A
  • Sales ($mil) 12/2010 = 100002
  • Sales ($mil) 12/2009 = 106700

Dividend history

  • Div Yield = 8.15
  • Div Yld 5 Yr Avg 12/2011 = 5.75
  • Div Yld 5 Yr Avg 09/2011 = 5.45
  • Annual Dividend 12/2011 = 0.69
  • Annual Dividend 12/2010 = 0.64
  • Forward Yield = 8.15
  • Div 5yr Growth 12/2011 = 3.91
  • R-squared Div Growth 12/2011 = 0.13
  • R-squared Div Growth 09/2011 = 0.26

Dividend sustainability

  • Payout Ratio 09/2011 = 0.48
  • Payout Ratio 06/2011 = 0.49
  • Payout Ratio 5 Yr Avg 12/2011 = 0.49
  • Payout Ratio 5 Yr Avg 09/2011 = 0.48
  • Payout Ratio 5 Yr Avg 06/2011 = 0.48
  • Change in Payout Ratio = 0.06

Performance

  • % Ch Price 52 Wks Rel to S&P 500 = -33.12
  • Std Dev Target Price Est = 0
  • Avg EPS Surprise Last 4 Qtr = N/A
  • EPS % Change F2/F1 = 9.17
  • Next 3-5 Yr Est EPS Gr rate = 12.4
  • Std Dev 3-5 Yr Est EPS Gr rate = N/A
  • EPS Gr Q(1)/Q(-3) = 145.46
  • 5 Yr Hist EPS Gr 12/2011 = N/A
  • 5 Yr Hist EPS Gr 09/2011 = N/A
  • ROE 5 Yr Avg 12/2011 = 16.33
  • ROE 5 Yr Avg 09/2011 = 16.69
  • ROE 5 Yr Avg 06/2011 = 17.21
  • Return on Investment 12/2011 = 3.37
  • Return on Investment 09/2011 = 3.44
  • Return on Investment 06/2011 = 3.34
  • Debt/Tot Cap 5 Yr Avg 12/2011 = 57.46
  • Debt/Tot Cap 5 Yr Avg 09/2011 = 58.8
  • Debt/Tot Cap 5 Yr Avg 06/2011 = 59.31
  • Current Ratio 12/2011 = N/A
  • Current Ratio 09/2011 = 1.2
  • Current Ratio 06/2011 = 7.46
  • Curr Ratio 5 Yr Avg = 2.33
  • Quick Ratio = 3.47
  • Cash Ratio = 0.99
  • Interest Coverage 12/2011 = N/A
  • Interest Coverage 09/2011 = N/A
  • Interest Coverage 06/2011 = N/A

Valuation

  • Book Value Qtr ($/sh) 12/2011 = N/A
  • Book Value Qtr ($/sh) 09/2011 = 13.13
  • Book Value Qtr ($/sh) 06/2011 = 13.58
  • Anl EPS before NRI 12/2007 = 1.95
  • Anl EPS before NRI 12/2008 = N/A
  • Anl EPS before NRI 12/2009 = 1.49
  • Anl EPS before NRI 12/2010 = 1.25
  • Anl EPS before NRI 12/2011 = 1.06
  • Price/ Book = 0.64
  • Price/ Cash Flow = 5.22
  • Price/ Sales = N/A
  • EV/EBITDA 12 Mo = N/A
  • P/E/G F1 = 0.58
  • Q1 Std Dev/ Consensus = N/A
  • R-squared EPS Growth 12/2011 = N/A
  • R-squared EPS Growth 09/2011 = N/A
  • P/E F1/ LT EPS Gr = 0.58
  • Std Dev Cons Current Qtr = N/A
  • Median Est Next Qtr = N/A
  • # Anlst in Cons Q3 = N/A

Conclusion

Long term investors should wait for a strong pullback before committing fresh money to this market. A pullback in the 7%-10% ranges would classify as a strong pullback.

Free cash flow yield, and revenue growth charts sourced from Ycharts. EPS, EPS surprise and price and consensus charts sourced from zacks.com. Earnings vs. expectations sourced from smartmoney.com. Earnings estimates charts sourced from dailyfinance.com.

Disclaimer: This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies -- let the buyer beware.

Source: 5 Interesting Dividend Plays With Good Yields