Submitted by
Dividend Yield
as part of our
contributors program
.
The hurricane Sandy is forecasted as one of the worst storms
ever. Whatever will happen, the stock market will survive and
business goes on. I researched some interesting companies that
could earn some extra money due to the after-effects of the storm
Sandy. We have classified our results in industries and introduced
some of the major leaders. These are the results:
1. Home Improvement
People who lost their homes and mobiles need to repurchase these
products. Companies within the home improvement industry should
benefit from the hurricane. The major leaders are Home Depot (
HD
) and Lowe's (
LOW
).
2. Dining Restaurants
Humans who have left their homes need to stay away from home at
friends or near family members. For a few days, diner restaurants
could make some extra profits from this. Starbucks (
SBUX
), Dunkin Brands (
DNKN
) and McDonalds (
MCD
) are basic investments but a bit too big and well diversified that
the super storm should have a significant influence.
3. Travel Companies
If people leave their homes, they need to choose a provider if
they don't have an own car. Lodging stocks, auto rents, Airlines,
railroads are main benefiters.
4. Insurer
Insurer should make a loss. If the damages are higher than
expected, reinsurance companies should be the biggest losers. If
the damages are lower than estimated, insurer could benefit,
especially some players from the property and casualty insurance
industry. Market leader are Berkshire Hathaway (BRK.A, BRK.B),
American International (AIG), Travelers (TRV) or even Allstate
(ALL).
5. Consumer Goods
People need to buy extra storage of food, water and batteries.
Companies like Procter&Gamble (PG) have a big relationship to
the consumer battery industry (Duracell). Otherwise, the company
should benefit from replacement buys of flooded goods.
6. Diversified Machinery
Some companies from the diversified machinery industry have
products against flooding. Companies like Xylem (XYL) and PentAir
(PNR) produce pumps used in dewatering, drainage and other
applications.
7. Stores
Grocery and discount stores should benefit from hamster
purchases. Wal-Mart (WMT), Family Dollar Stores (FDO), Target (TGT)
or Costco Wholesale (COST) are basic investments.
8. Media Companies
People are sitting in front of their media devices like smart
phones, radio, television etc. Facebook (FB), News Corp (NWSA), NY
Times (NYT) or even CBS Corporation (CBS) should generate a higher
attention.
9. General Building
Cement companies like Eagle Materials (EXP), homebuilder, raw
material companies should have a special bull market. Companies
like Beacon Roofing Supply (BECN) have a great market position.
Whatever will happen, nothing is so bad to make too fast
decisions. But an overreaction could give investors a great
opportunity for long-term investors. These are my personal
favorites to watch:
Pentair
(PNR) has a market capitalization of $4.08 billion. The company
generates revenue of $3.46 billion and has a net income of $38.52
million. The firm's EBITDA amounts to $276.65 million. The EBITDA
margin is 8.00% (operating margin 4.88% and net profit margin
1.11%).
The total debt represents 28.54% of the company's assets and the
total debt in relation to the equity amounts to 67.71%. Last fiscal
year, a return on equity of 1.70% was realized. Twelve trailing
months earnings per share reached a value of $0.46. Last fiscal
year, the company paid $0.80 in form of dividends to
shareholders.
Here are the price ratios of the company: The P/E ratio is
88.46, Price/Sales 2.49 and Price/Book ratio 2.10. Dividend Yield:
2.14%. The beta ratio is 1.11.
Lowe's Companies
(
LOW
) has a market capitalization of $35.77 billion. The company
generates revenue of $50.21 billion and has a net income of $1.84
billion. The firm's EBITDA amounts to $4.76 billion. The EBITDA
margin is 9.47% (operating margin 5.79% and net profit margin
3.66%).
The total debt represents 22.73% of the company's assets and the
total debt in relation to the equity amounts to 46.13%. Last fiscal
year, a return on equity of 10.53% was realized. Twelve trailing
months earnings per share reached a value of $1.51. Last fiscal
year, the company paid $0.53 in form of dividends to
shareholders.
Here are the price ratios of the company: The P/E ratio is
20.77, Price/Sales 0.71 and Price/Book ratio 2.35. Dividend Yield:
2.04%. The beta ratio is 1.06.
Home Depot
(
HD
) has a market capitalization of $90.51 billion. The company
generates revenue of $70.40 billion and has a net income of $3.88
billion. The firm's EBITDA amounts to $8.23 billion. The EBITDA
margin is 11.70% (operating margin 9.46% and net profit margin
5.52%).
The total debt represents 26.63% of the company's assets and the
total debt in relation to the equity amounts to 60.27%. Last fiscal
year, a return on equity of 21.11% was realized. Twelve trailing
months earnings per share reached a value of $2.80. Last fiscal
year, the company paid $1.04 in form of dividends to
shareholders.
Here are the price ratios of the company: The P/E ratio is
21.47, Price/Sales 1.29 and Price/Book ratio 5.16. Dividend Yield:
1.93%. The beta ratio is 0.84.
Eagle Materials
(EXP) has a market capitalization of $2.19 billion. The company
generates revenue of $495.02 million and has a net income of $18.73
million. The firm's EBITDA amounts to $68.68 million. The EBITDA
margin is 13.88% (operating margin 6.27% and net profit margin
3.78%).
The total debt represents 27.10% of the company's assets and the
total debt in relation to the equity amounts to 56.49%. Last fiscal
year, a return on equity of 4.01% was realized. Twelve trailing
months earnings per share reached a value of $0.71. Last fiscal
year, the company paid $0.40 in form of dividends to
shareholders.
Here are the price ratios of the company: The P/E ratio is
67.63, Price/Sales 4.72 and Price/Book ratio 4.62. Dividend Yield:
0.83%. The beta ratio is 1.31.
Xylem
(XYL) has a market capitalization of $4.38 billion. The company
generates revenue of $3.80 billion and has a net income of $279.00
million. The firm's EBITDA amounts to $519.00 million. The EBITDA
margin is 13.65% (operating margin 10.39% and net profit margin
7.34%).
The total debt represents 27.45% of the company's assets and the
total debt in relation to the equity amounts to 66.01%. Last fiscal
year, a return on equity of 12.27% was realized. Twelve trailing
months earnings per share reached a value of $1.51. Last fiscal
year, the company paid $0.10 in form of dividends to
shareholders.
Here are the price ratios of the company: The P/E ratio is
15.60, Price/Sales 1.15 and Price/Book ratio 2.38. Dividend Yield:
none. The beta ratio is not calculable.
Beacon Roofing Supply
(
BECN
) has a market capitalization of $1.46 billion. The company
generates revenue of $1.82 billion and has a net income of $59.22
million. The firm's EBITDA amounts to $128.80 million. The EBITDA
margin is 7.09% (operating margin 5.71% and net profit margin
3.26%).
The total debt represents 28.27% of the company's assets and the
total debt in relation to the equity amounts to 60.75%. Last fiscal
year, a return on equity of 11.76% was realized. Twelve trailing
months earnings per share reached a value of $1.67. Last fiscal
year, the company paid no dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is
18.55, Price/Sales 0.80 and Price/Book ratio 2.66. Dividend Yield:
none. The beta ratio is 1.15.