Traditionally, investors use P/CF (Price/Cash Flow) ratio to evaluate the investment attractiveness. P/CF ratio is perceived to be a more reliable one as opposed to P/E as the former cannot be manipulated easily and also it will not be affected by the non-cash items such as depreciation/amortization.
Today we have shortlisted 14 U.S technology
stocks with low P/CF ratios (<17) for fiscal year 2013 and are expected to
report strong cash flow per share growth (>12%) for fiscal year 2014. Moreover, during the past one month, all of these stocks have registered price gains with daily average trading volumes in excess of 100,000.
| Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
P/CF 2013 |
Cash Flow Per Share Growth 2014(E) |
|
Tessera Technologies Inc |
TSRA |
NASDAQ |
1,678.1 |
31.80 |
489,493 |
22.7% |
13.7 |
404.0% |
|
Atmel Corp |
ATML |
NASDAQ |
3,117.7 |
7.47 |
6,075,541 |
14.9% |
16.5 |
60.4% |
|
Merge Healthcare Inc |
MRGE |
NASDAQ |
304.7 |
3.09 |
384,331 |
33.2% |
7.6 |
49.7% |
|
BroadSoft Inc |
BSFT |
NASDAQ |
790.7 |
27.45 |
346,641 |
38.9% |
14.6 |
36.5% |
|
ON Semiconductor Corp |
ONNN |
NASDAQ |
3,569.8 |
8.19 |
8,079,465 |
17.5% |
8.1 |
31.4% |
|
Entegris Inc |
ENTG |
NASDAQ |
1,870.7 |
13.41 |
735,674 |
22.2% |
14.8 |
30.8% |
|
Teradyne Inc |
TER |
NYSE |
4,085.2 |
18.87 |
3,301,764 |
14.9% |
10.4 |
28.3% |
|
Cypress Semiconductor Corp |
CY |
NASDAQ |
1,609.2 |
9.98 |
2,766,106 |
19.8% |
15.7 |
23.1% |
|
Lattice Semiconductor Corp |
LSCC |
NASDAQ |
770.9 |
6.52 |
1,371,238 |
7.8% |
9.5 |
16.7% |
|
PMC-Sierra Inc |
PMCS |
NASDAQ |
1,515.0 |
7.65 |
1,512,887 |
14.3% |
15.6 |
16.4% |
|
Fairchild Semiconductor International Inc |
FCS |
NASDAQ |
1,858.2 |
15.65 |
2,016,530 |
25.8% |
7.9 |
16.3% |
|
Emulex Corp |
ELX |
NYSE |
392.7 |
5.51 |
1,245,734 |
23.0% |
6.9 |
15.9% |
|
Aspen Technology Inc |
AZPN |
NASDAQ |
3,348.3 |
37.01 |
917,885 |
7.6% |
15.9 |
13.4% |
|
Syntel Inc |
SYNT |
NASDAQ |
3,762.6 |
45.00 |
243,286 |
1.2% |
16.0 |
12.0% |
Source: Bloomberg
Company Description
Tessera Technologies Inc (NASDAQ: TSRA)
Tessera Technologies Inc. provides proprietary chip scale packaging technology. The company’s technology accelerates demand for performance and miniaturization in wireless communications, Internet access, and computing and consumer electronics.
Atmel Corp (NASDAQ: ATML)
Atmel Corporation designs, develops, manufactures, and markets various non-volatile memory and logic integrated circuits using its proprietary technology. The company’s devices are used in products for telecommunications, computers, networking, image processing, industrial and military applications, and avionics.
Merge Healthcare Inc (NASDAQ: MRGE)
Merge Healthcare Inc. provides medical imaging and information management software and services. The company offers clinical and medical imaging software applications and development tools.
BroadSoft Inc (NASDAQ: BSFT)
BroadSoft Inc. is a global provider of software that enables fixed-line, mobile and cable service providers to deliver voice and multimedia services over their Internet protocol-based, or IP-based, networks. The company’s software enables customers to provide enterprises and consumers with a range of cloud-based, or hosted, IP multimedia communications.
ON Semiconductor Corp (NASDAQ: ONNN)
ON Semiconductor Corporation supplies analog, standard logic, and discrete semiconductors for data and power management. The company’s products include integrated circuits, and analog ICs. ON also offers discrete semiconductors in a variety of surface mount and standard packages.
Entegris Inc (NASDAQ: ENTG)
Entegris Inc. provides materials management products and services to the microelectronics industry on a worldwide basis. The company provides products such as wafer shippers, wafer transport and process carriers, pods, and work-in-process boxes. Entegris also provides chemical delivery products such as valves, fittings, tubing, pipe, and containers.
Teradyne Inc (NYSE: TER)
Teradyne, Inc. designs, manufactures, sells, and supports semiconductor test products and services on a worldwide basis. The company’s test equipment products and services include: semiconductor test systems, military/aerospace test instrumentation and systems, circuit-board test and inspection systems and automotive diagnostic and test systems.
Cypress Semiconductor Corp (NASDAQ: CY)
Cypress Semiconductor Corporation designs, develops, manufactures, and markets a line of digital and mixed-signal integrated circuits. The company’s circuits are used in the data communications, telecommunications, computers, and instrumentation systems markets. Cypress’ products are marketed worldwide through a network of sales offices, distributors, and sales representative firm.
Lattice Semiconductor Corp (NASDAQ: LSCC)
Lattice Semiconductor Corporation designs, develops, and markets high speed programmable logic devices. The company’s products provide electronic systems customers with quickly designed, easily configured components. Lattice markets its products to original equipment manufacturers of communication, computing, industrial, and military systems.
PMC-Sierra Inc (NASDAQ: PMCS)
PMC-Sierra, Inc. designs, develops, markets, and supports semiconductor networking solutions. The company’s products are used in the high speed transmission and networking systems which are used to restructure the global telecommunications and data communications infrastructure.
Fairchild Semiconductor International Inc (NASDAQ: FCS)
Fairchild Semiconductor International, Inc., is a global supplier of high performance products that minimize, convert, manage and distribute power for multiple end markets. The company’s focus is on developing power and interface solutions for a broad range of electronic devices. Fairchild Semiconductor components are used in computing, communications, and other applications.
Emulex Corp (NYSE: ELX)
Emulex Corporation provides converged networking solutions for data centers. The company’s product portfolio consists of storage adapters, network interface cards, encrypting adapters, controller chips, server management chips, embedded bridges, switches and routers, and connectivity management software.
Aspen Technology Inc (NASDAQ: AZPN)
Aspen Technology, Inc. supplies software products and services for the analysis, design, and automation of process manufacturing facilities. The company’s software and services are used by companies in the chemical, petroleum, pharmaceuticals, pulp and paper, and metals industries.
Syntel Inc (NASDAQ: SYNT)
Syntel, Inc. provides strategic Information Technology/Business Process Outsourcing solutions to Global 2000 companies. The company’s services support entire systems and process lifecycles for clients in the Financial Services, Retail, Healthcare and Manufacturing/Automotive industries, among others. Syntel is SEI CMMi Level 5, ISO 27001 and ISO 9001:2008 certified.
