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9 High-Yield Stocks Undervalued By Levered Free Cash Flow
Published Sat, 12 Jan 2013 03:56:27 -0500 on Seeking Alpha
Do you prefer stocks that pay handsome dividends? For a closer look at high dividend yield stocks, we ran a screen. We began by screening for high dividend yield stocks: those having dividend yields above 3% and sustainable payout ratios below 50%. We screened for stocks that appear undervalued relative to their cash flows, indicated by high ratios of levered free cash flow/enterprise value. Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm's value from all ownership sources: market cap, outstanding debt, and preferred shares. When companies have ratios of levered free cash flow/enterprise value in excess of 10%, it may indicate those companies are being undervalued.
For an ‪interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
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| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUPERIOR INDUSTRIES | 3.63 | 0.0 | -0.04 | 0.36 | 11.36 | |||||||
| UNIVERSAL | 56.35 | 15.4 | 3.67 | 3.04 | 5.56 | |||||||
| BALDWIN & LYONS | 22.65 | 0.0 | 0.00 | 1.12 | 4.87 | |||||||
| SEAGATE TECH | 56.30 | 7.9 | 7.11 | 2.52 | 4.55 | |||||||
| FUTUREFUEL | 12.16 | 25.9 | 0.47 | 0.24 | 2.08 | |||||||
| MANTECH INTERNATIONAL | 68.06 | 31.2 | 2.18 | 1.08 | 1.59 | |||||||
| NORTHROP GRUMMAN | 365.22 | 19.5 | 18.72 | 5.28 | 1.49 | |||||||
| CA | 44.44 | 0.0 | 0.00 | 0.00 | 0.00 | |||||||