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5 Companies You Can Buy Today
live (public) 0.84% May 07
As we continue to examine dividend bearing stocks, especially large cap
that will be able to ride out the turbulence that is part of the new
normal, we pick up the selection from
He uses Enterprise value over unlevered free cash flow. As he summarizes
- Enterprise value is market capitalization plus total debt and minority interests, minus cash.
- Unlevered free cash flow is free cash flow with interest paid on outstanding debt added back in.
The ratio of these two statistics provides a valuation metric that takes into consideration all providers of capital -- both stockholders and bondholders.
Using this metric, he selected five companies:
|
Company |
Enterprise Value/ Unlevered FCF |
|---|---|
| Ford (F) | 8.1 |
| Intel (INTC) | 15.2 |
| Johnson & Johnson (JNJ) | 14.9 |
| Hewlett-Packard (HPQ) | 8.5 |
| Eli Lilly (LLY) | 9.5 |
Sources: S&P Capital IQ,
These are large companies, some of which are struggling and some are doing well. The question is whether this is an interesting selection going forward. In his article, Morgan gives more commentary on the selections. We will start by measuring it against our dividend bearing ETF portfolio:
| Asset | Fund in this portfolio | Price change* | Percentage |
|---|---|---|---|
| Asset1 | F (Ford Motor Company) | 2.64% | 4.79% |
| Asset1 | INTC (Intel Corporation) | 0.94% | 5.76% |
| Asset1 | JNJ (Johnson & Johnson) | 0.09% | 14.76% |
| Asset1 | HPQ (HP Inc) | 0.04% | 8.33% |
| Asset1 | LLY (Eli Lilly and Company) | 1.45% | 66.36% |
* Day change on 05/07/2024.
Previous
Since 03/17/2002
| Name | YTD* Return |
1Yr AR** |
3Yr AR** |
5Yr AR** |
10Yr AR** |
15Yr AR** |
|---|---|---|---|---|---|---|
| 5 Companies You Can Buy Today | 14.4% | 42.5% | 22.3% | 21.1% | 13.9% | 12.9% |
| VFINX (Vanguard (S&P 500) Index) | 9.2% | 27.2% | 9.1% | 13.9% | 12.6% | 14.2% |
| VBINX (Vanguard Balance (60% stocks/40% bonds) | 4.4% | 15.7% | 3.2% | 8.0% | 7.8% | 9.4% |
* YTD: Year to Date
** AR: Annualized Return
| Last 1 Week* | YTD*(2024) | 1 Yr | 3 Yr | 5 Yr | 10 Yr | 15 Yr | 20 Yr | Since 03/18/2002 |
2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Annualized Return(%) | 0.3 | 14.4 | 42.5 | 22.3 | 21.1 | 13.9 | 12.9 | 9.3 | 8.0 | 36.7 | -1.5 | 41.4 | 9.1 | 16.6 | 0.9 | 22.4 | 8.0 | -15.9 | 30.1 | 38.2 | -5.3 | -15.1 | 0.1 | 39.3 | -28.3 | 14.9 | 14.3 | 1.3 | -7.5 | 37.9 | -27.8 |
| Sharpe Ratio | NA | 0.73 | 2.12 | 1.07 | 0.89 | 0.67 | NA | NA | 0.33 | 1.84 | -0.13 | 2.49 | 0.26 | 1.08 | -0.02 | 2.5 | 0.53 | -0.79 | 2.2 | 2.73 | -0.35 | -0.6 | 0.0 | 1.55 | -0.78 | 0.73 | 0.72 | -0.07 | -0.53 | 1.62 | -0.81 |
| Draw Down(%) | NA | 8.9 | 9.9 | 15.0 | 27.6 | 27.6 | NA | NA | 48.9 | 11.1 | 15.0 | 9.0 | 27.6 | 11.5 | 14.8 | 4.2 | 12.4 | 19.7 | 10.7 | 10.8 | 20.1 | 30.2 | 21.8 | 29.0 | 38.7 | 8.8 | 11.8 | 8.4 | 22.0 | 19.2 | 38.8 |
| Standard Deviation(%) | NA | 18.0 | 18.2 | 18.6 | 22.0 | 19.2 | NA | NA | 20.9 | 17.6 | 21.5 | 16.6 | 33.7 | 14.1 | 19.5 | 8.7 | 14.6 | 20.2 | 13.7 | 14.0 | 15.1 | 25.2 | 19.3 | 25.3 | 37.6 | 16.4 | 15.2 | 13.2 | 15.9 | 22.9 | 35.3 |
| Treynor Ratio | NA | 0.25 | 0.58 | 0.29 | 0.24 | 0.21 | NA | NA | 0.38 | 0.5 | -0.04 | 0.51 | 0.1 | 0.17 | -0.03 | -1.54 | 0.94 | 1.13 | 3.38 | -3.09 | 4.05 | -4.67 | 0.02 | -83.89 | 1.56 | -0.93 | -3.62 | -18.89 | -1.86 | -4.83 | 6.83 |
| Alpha | NA | 0.1 | 0.08 | 0.06 | 0.04 | 0.03 | NA | NA | 0.03 | 0.07 | 0.05 | 0.06 | -0.02 | -0.03 | 0.01 | 0.09 | 0.03 | -0.06 | 0.1 | 0.15 | -0.02 | -0.05 | 0.01 | 0.14 | -0.14 | 0.05 | 0.05 | 0.0 | -0.03 | 0.14 | -0.15 |
| Beta | NA | 0.54 | 0.67 | 0.7 | 0.8 | 0.6 | NA | NA | 0.18 | 0.65 | 0.71 | 0.8 | 0.87 | 0.88 | 0.17 | -0.14 | 0.08 | -0.14 | 0.09 | -0.12 | -0.01 | 0.03 | 0.03 | 0.0 | -0.19 | -0.13 | -0.03 | 0.0 | 0.05 | -0.08 | -0.04 |
| RSquared | NA | 0.12 | 0.18 | 0.42 | 0.59 | 0.31 | NA | NA | 0.03 | 0.23 | 0.64 | 0.4 | 0.78 | 0.62 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.0 | 0.0 | 0.0 | 0.0 | 0.04 | 0.02 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Sortino Ratio | NA | 1.23 | 3.59 | 1.63 | 1.31 | 0.94 | NA | NA | 0.47 | 2.98 | -0.19 | 4.03 | 0.38 | 1.53 | -0.03 | 3.84 | 0.74 | -0.98 | 3.22 | 4.22 | -0.48 | -0.76 | 0.0 | 2.3 | -1.09 | 1.02 | 1.07 | -0.1 | -0.71 | 2.34 | -1.14 |
| Yield(%) | N/A | 1.03 | 2.74 | 2.51 | 2.12 | 2.42 | N/A | N/A | 2.28 | 2.31 | 2.29 | 2.55 | 1.35 | 1.41 | 0.94 | 0.84 | 5.46 | 3.53 | 3.39 | 3.75 | 3.04 | 2.12 | 1.81 | 2.3 | 1.59 | 1.58 | 1.98 | 2.07 | 1.67 | 2.0 | 1.07 |
| Dividend Growth(%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
*: NOT annualized;YTD: Year to Date
**Inception: starting from 03/17/2002
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