This list is meant to serve as a starting point for investors. A lot of data has been provided so it should be relatively easy for an investor to scroll down the list and decide if the stock warrants further attention. If you find the stock appealing, you can dig deeper and see if meets with your investment criteria. To help the novice investor we have put out this guideline which could prove to be useful in the selection process. "Our suggested guidelines when searching for new investment ideas." Navios Maritime Partners would fall under the "speculative category" but it appears to be putting in a bottom and could make for a good long-term investment for those willing to take a risk. Furthermore, it does offer a rather enticing yield of 13.3%.
Company: Danaher Corp (DHR)
Brief Overview
Percentage Held by Insiders = 16.8Levered Free Cash Flow = 1.83BNumber of Institutional Sellers 12 Weeks = 2Relative Strength 52 weeks = 55Cash Flow 5-year Average = 2.57Profit Margin = 13.77%Operating Margin = 17.51%Quarterly Revenue Growth = 31%Quarterly Earnings Growth = 42.8%Operating Cash Flow = $2.8BBeta = 1.08Percentage Held by Institutions = 67.8%Short Percentage of Float = 2.3%Growth
Net Income ($mil) 12/2011 = 1793Net Income ($mil) 12/2010 = 1152Net Income ($mil) 12/2009 = 1152Net Income Reported Quarterly ($mil) = 613EBITDA ($mil) 12/2011 = 2735EBITDA ($mil) 12/2010 = 1777EBITDA ($mil) 12/2009 = 1777Cash Flow ($/share) 12/2011 = 2.99Cash Flow ($/share) 12/2010 = 2.35Cash Flow ($/share) 12/2009 = 2.35Sales ($mil) 12/2011 = 13203Sales ($mil) 12/2010 = 11185Sales ($mil) 12/2009 = 11185Annual EPS before NRI 12/2007 = 1.92Annual EPS before NRI 12/2002 = 2.12Annual EPS before NRI 12/2009 = 1.77Annual EPS before NRI 12/2010 = 1.77Annual EPS before NRI 12/2011 = 2.31Dividend history
Dividend Yield = 0.2Dividend Yield 5 Year Average 03/2012 = 0.18Annual Dividend 12/2011 = 0.08Dividend 5 year Growth 03/2012 = 13.72Dividend sustainability
Payout Ratio 03/2012 = 0.03Payout Ratio 5 Year Average 03/2012 = 0.03Payout Ratio 5 Year Average 12/2011 = 0.03Performance
Next 3-5 Year Estimate EPS Growth rate = 14.575 Year History EPS Growth 03/2012 = 9.1ROE 5 Year Average 03/2012 = 13.04ROE 5 Year Average 12/2011 = 13.45Return on Investment 03/2012 = 9.24Debt/Total Cap 5 Year Average 03/2012 = 21.22Current Ratio 03/2012 = 1.67Current Ratio 12/2011 = 1.5Current Ratio 5 Year Average = 1.64Quick Ratio = 1.08Cash Ratio = 0.35Interest Coverage Quarterly = 18.66Notes
The stock appears to be putting in a bottom. Consider selling puts with strikes in the 48-50 ranges to lower your entry cost. You could sell puts with 2-6 months of time left on them. The further out you go, the higher the premium.
Company: Navios Maritime Partners LP (NMM)
Brief Overview
Percentage Held by Insiders = 9.23%Levered Free Cash Flow = -5.89MCash Flow 5-year Average = 2.4Profit Margin = 34.18%Operating Margin = 40.94%Quarterly Revenue Growth = 12.1%Quarterly Earnings Growth = 2%Operating Cash Flow = 133.98MBeta = 1.48Percentage Held by Institutions = 24.6%Growth
Net Income ($mil) 12/2011 = 65Net Income ($mil) 12/2010 = 61Net Income ($mil) 12/2009 = 34Net Income Reported Quarterly ($mil) = 17EBITDA ($mil) 12/2011 = 139EBITDA ($mil) 12/2010 = 109EBITDA ($mil) 12/2009 = 59Cash Flow ($/share) 12/2011 = 2.86Cash Flow ($/share) 12/2010 = 2.49Cash Flow ($/share) 12/2009 = 2.24Sales ($mil) 12/2011 = 187Sales ($mil) 12/2010 = 143Sales ($mil) 12/2009 = 93Annual EPS before NRI 12/2007 = 0.15Annual EPS before NRI 12/2008 = 1.56Annual EPS before NRI 12/2009 = 1.66Annual EPS before NRI 12/2010 = 1.51Annual EPS before NRI 12/2011 = 1.4Dividend history
Dividend Yield = 13.30Dividend Yield 5 Year Average = 11.33Dividend sustainability
Payout Ratio = 4.73Payout Ratio 5 Year Average = 1.08Performance
Next 3-5 Year Estimate EPS Growth rate = 5ROE 5 Year Average = 24.89Current Ratio = 1.29Current Ratio 5 Year Average = 2.26Quick Ratio = 1.10Cash Ratio = 1.04Interest Coverage = 7.50Notes
Only individuals willing to take on a bit of risk should consider this play as it is more speculative in nature. It does, however, offer a great yield and it has held up much better than many of its peers. Additionally, net income, EBITDA, sales and cash flow have all be trending upward for the past three years. It also sports a decent quick ratio of 1.10, a current ratio of 1.20 and pretty good interest coverage ratio of 7.50
Consider waiting for a test of the $12.00 ranges before jumping in. Alternatively, if you are bullish, you could sell puts at strikes you would not mind owning the stock at. You will either get in at a price of your choosing, or you will get paid for trying to via the premium.
Company : Ternium SA (TX)
Levered Free Cash Flow = 228.45M
Brief Overview
Relative Strength 52 weeks = 28Cash Flow 5-year Average = 5.57Profit Margin = 5.09%Operating Margin = 13.93%Quarterly Revenue Growth = 2.2%Quarterly Earnings Growth = -22%Operating Cash Flow = 691.89MBeta = 2.04Short ratio = 1.10Growth
Net Income ($mil) 12/2011 = 650Net Income ($mil) 12/2010 = 780Net Income ($mil) 12/2009 = 767Net Income Reported Quarterly ($mil) = 160EBITDA ($mil) 12/2011 = 1472EBITDA ($mil) 12/2010 = 1642EBITDA ($mil) 12/2009 = 921Cash Flow ($/share) 12/2011 = 6.27Cash Flow ($/share) 12/2010 = 5.8Cash Flow ($/share) 12/2009 = 3.61Sales ($mil) 12/2011 = 9157Sales ($mil) 12/2010 = 7382Sales ($mil) 12/2009 = 4959Annual EPS before NRI 12/2007 = 0.39Annual EPS before NRI 12/2008 = 2.93Annual EPS before NRI 12/2009 = 1.58Annual EPS before NRI 12/2010 = 3.1Annual EPS before NRI 12/2011 = 3.42Dividend history
Dividend Yield = 3.9Dividend Yield 5 Year Average = 3.49Dividend 5 year Growth = N/ADividend sustainability
Payout Ratio = 0.32Payout Ratio 5 Year Average = 0.26Performance
Next 3-5 Year Estimate EPS Growth rate = 2ROE 5 Year Average 12/2012 = 12.668. Current Ratio 12/2011 = 2.019. Current Ratio 5 Year Average = 3Quick Ratio = 1.74Cash Ratio = 1.37Interest Coverage Quarterly = 8.28Company : Energy Transfer Partners (ETP)
Brief Overview
Percentage Held by Insiders = 3Relative Strength 52 weeks = 53Cash Flow 5-year Average = 4.97Profit Margin = 23.75%Operating Margin = 17.56%Quarterly Revenue Growth = -22.6%Quarterly Earnings Growth = 350.9%Operating Cash Flow = 1.31BBeta = 0.95Levered Free Cash Flow = -543.81MPercentage Held by Institutions = 21.8%Short Percentage of Float = 3.1%Growth
Net Income ($mil) 12/2011 = 669Net Income ($mil) 12/2010 = 617Net Income ($mil) 12/2009 = 792Net Income Reported Quarterly ($mil) = 1115EBITDA ($mil) 12/2011 = 1631EBITDA ($mil) 12/2010 = 1398EBITDA ($mil) 12/2009 = 1520Cash Flow ($/share) 12/2011 = 5.67Cash Flow ($/share) 12/2010 = 5.34Cash Flow ($/share) 12/2009 = 6.32Sales ($mil) 12/2011 = 6850Sales ($mil) 12/2010 = 5885Sales ($mil) 12/2009 = 5417Annual EPS before NRI 12/2007 = 3.31Annual EPS before NRI 12/2008 = 4.09Annual EPS before NRI 12/2009 = 2.51Annual EPS before NRI 12/2010 = 1.47Annual EPS before NRI 12/2011 = 1.48Dividend history
Dividend Yield = 8.0Dividend Yield 5 Year Average = 7.9Dividend 5 year Growth = 1.56Dividend sustainability
Payout Ratio = 0.75Payout Ratio 5 Year Average = 1.68Performance
Next 3-5 Year Estimate EPS Growth rate = 12.05ROE 5 Year Average = 19.14Current Ratio = 1.10Current Ratio 5 Year Average = 1.15Quick Ratio = 0.61Cash Ratio = 0.19Interest Coverage Quarterly = 9.33Important facts investors should be aware in regards to investing in MLPs
Payout ratios are not that important when it comes to MLPs generally pay a majority of their cash flow as distributions. 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 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 declared per unit.
MLPs are not taxed like regular corporations because they pay out a large portion of their income to partners (as an investor you are basically a partner and are allocated units instead of shares) usually through quarterly distributions. The burden is thus shifted to the partners who are taxed at their ordinary income rates. As ordinary income tax rates of investors are typically lower than the income tax assessed on corporations, this arrangement is advantageous to the MLPs and generally most investors.
MLPs issue a Schedule K-1 to their investors. Unrelated business income (UBI) above $1,000 is taxable in an IRA. This information will appear Box 20 in the schedule K-1. UBI is typically a very small number usually well below $1000 and in some cases negative. If the MLP pays out distributions in excess of the income it generates, the distribution is classified as a "return of capital" and tax deferred until you sell your units. For more information, on this topic investors can visit the National Association of Publicly Traded Partnerships
Company: Nustar Energy (NS)
Brief Overview
Levered Free Cash Flow = -123.01MCash Flow 5-year Average = 5.74Profit Margin = 3.1%Operating Margin = 4.33%Quarterly Revenue Growth = 40.6%Quarterly Earnings Growth = -7.5%Operating Cash Flow = 250.65MBeta = 0.77Percentage Held by Institutions = 29.7%Short Percentage of Float = 0.7%Growth
Net Income ($mil) 12/2011 = 222Net Income ($mil) 12/2010 = 239Net Income ($mil) 12/2009 = 225Net Income Reported Quarterly ($mil) = 26EBITDA ($mil) 12/2011 = 478EBITDA ($mil) 12/2010 = 483EBITDA ($mil) 12/2009 = 461Cash Flow ($/share) 12/2011 = 5.57Cash Flow ($/share) 12/2010 = 5.64Cash Flow ($/share) 12/2009 = 5.82Sales ($mil) 12/2011 = 6575Sales ($mil) 12/2010 = 4403Sales ($mil) 12/2009 = 3856Annual EPS before NRI 12/2007 = 2.58Annual EPS before NRI 12/2008 = 4.07Annual EPS before NRI 12/2009 = 3.03Annual EPS before NRI 12/2010 = 2.89Annual EPS before NRI 12/2011 = 2.97Dividend history
Dividend Yield = 8.4Dividend Yield 5 Year Average = 7.80Dividend 5 year Growth = 3.86Dividend sustainability
Payout Ratio = 1.7Payout Ratio 5 Year Average 12/2011 = 1.36Performance
Next 3-5 Year Estimate EPS Growth rate = 6.45ROE 5 Year Average = 8.87Current Ratio = 0.92Current Ratio 5 Year Average = 1.77Quick Ratio = 0.65Cash Ratio = 0.07Interest Coverage Quarterly = 2.33Conclusion
A great way to get into a stock that you are bullish on is to sell puts at strikes you would not mind owning the stock at. Investors looking for other ideas might find this article to be of interest Silver Wheaton: Get In At $20 Or Grab An Extra 13% .
EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: It is imperative that you do your due diligence and then determine if the above plays meets with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware.
I would like to share, what is dividend?
ReplyDeleteDividend is a cash payment from a company's earnings; it is announced by a company's board of directors and distributed among stockholders. In other words, dividends are an investor's share of a company's profits, given to him or her as a part owner of the company
asx dividend