Cash-Rich Non-U.S. Companies Trading in the U.S.

In this time of difficult credit conditions, it could make sense to evaluate companies with plenty of cash.  One way to measure cash is to subtract all liabilities and see if there is any cash left (Net Cash).

If a company has Net Cash, they could pay off any and all debts and other reported liabilities, and have money left over.

We looked at all the companies traded in the US with a market capitalization of $1 billion or more.  From those, we identified all that had Net Cash as of the most recent quarterly report, and that also had a positive EBITDA (earnings before interest, taxes, depreciation and amortization).

The table below shows the 30 non-US companies from the list that passed the filter criteria.

The companies in the list are not purchase recommendations, and the table does not address issues of valuation or prospects for the companies.  However, if cash-rich non-US companies are of interest, this list may be an interesting pool of research prospects.

Note that the list is highly concentrated in a limited range of sectors and industries, which limits the value of this particular screen for developing a diversified portfolio.  Nonetheless, within the scope of business types covered, the list could be useful.

Another approach would be to segment the list by sector or industry and find the most cash-rich companies in each.  That method would be more useful for building a diversified stock portfolio.

We included the web address of each company from which you can download their annual reports and learn how they depict themselves and describe their businesses and operational issues.

Don’t rely entirely on data services and other people’s opinions.  Be sure to review a company’s website and read their annual report to get a good feel for the company before you form an opinion or take any action.

Comments

[William L.Florida, CFA]

Why doesn't Toyota make your list?

[Richard Shaw]

According to my data source, the last quarter report for TM showed more total liabilities than cash.

[notsosmart]

good info-thanx