In order to measure the good health (liquidity and solvency) of a company, how much cash has been generated by the company needs to be analysed. Price/cash flow (P/CF) ratio is a measure of the market’s expectations of a firm’s future financial health. The ratio is considered more reliable than the price/earnings (P/E) ratio to evaluate a company, as cash flow is not easily manipulated unlike earnings which could be easily manipulated through depreciation and other non-cash factors.
Ubika Research has shortlisted ten U.S. industrial stocks that have recorded low P/CF ratio and significant sales growth in the last reported quarterly results. These stocks have P/CF ratio of less than 13, which is considered as an attractive investment from a valuation standpoint. Additionally, these stocks offer attractive dividend yields. We note that during the past 1-month, these stocks have registered positive price gains with 1-month average trading volume above 100,000 shares.
| Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
1-Month Price Change |
1-Month Average Volume |
Price to Cash Flow Ratio* |
Sales Growth* |
Dividend Yield* |
|
Tsakos Energy Navigation Ltd |
NYSE |
TNP |
472.7 |
6.6 |
4.5% |
809,372.2 |
2.3 |
16.4% |
2.9% |
|
American Railcar Industries Inc |
NASDAQ |
ARII |
1,027.7 |
48.1 |
6.1% |
261,835.2 |
4.4 |
18.2% |
2.5% |
|
DHT Holdings Inc |
NYSE |
DHT |
532.1 |
7.7 |
6.9% |
238,738.0 |
5.1 |
50.4% |
1.2% |
|
Kimball International Inc |
NASDAQ |
KBALB |
617.6 |
16.1 |
12.0% |
161,330.0 |
5.3 |
8.5% |
1.3% |
|
Trinity Industries Inc |
NYSE |
TRN |
4,470.7 |
57.3 |
4.9% |
1,204,351.8 |
5.4 |
22.4% |
1.1% |
|
GATX Corp |
NYSE |
GMT |
2,621.4 |
56.7 |
9.9% |
307,730.7 |
5.6 |
7.5% |
2.4% |
|
Covanta Holding Corp |
NYSE |
CVA |
2,388.2 |
18.3 |
2.3% |
1,293,190.0 |
8.1 |
3.6% |
3.0% |
|
Knight Transportation Inc |
NYSE |
KNX |
1,708.2 |
21.3 |
13.5% |
743,041.2 |
9.1 |
3.1% |
1.3% |
|
GasLog Ltd |
NYSE |
GLOG |
1,568.5 |
20.6 |
23.6% |
897,487.6 |
11.6 |
155.0% |
2.9% |
|
FLIR Systems Inc |
NASDAQ |
FLIR |
4,559.9 |
32.2 |
1.2% |
1,167,947.8 |
12.5 |
7.8% |
1.1% |
Source: Bloomberg
*P/CF Ratio, Sales Growth, and Dividend Yield are of latest reported quarters
Company Description:
Tsakos Energy Navigation Ltd (NYSE: TNP)
Tsakos Energy Navigation Ltd. owns and operates a fleet of tankers. The fleet includes VLCC, suezmax, aframax, panamax, and handymax tankers suitable for transporting crude oil, refined petroleum products, and other liquids. The company’s technical manager is Tsakos Columbia ShipManagement.
American Railcar Industries Inc (NASDAQ: ARII)
American Railcar Industries, Inc. manufactures railroad rolling stock. The company produces and repairs covered hopper and tank railcars, and offers fleet management services. American Railcar markets its products to companies that lease the cars to third parties, shippers, and railroads.
DHT Holdings Inc (NYSE: DHT)
DHT Holdings, Inc. is an independent crude oil tanker company. The company provides transportation services to oil companies and trades internationally with a fleet of crude oil tankers in the VLCC, Aframax and Suezmax segments.
Kimball International Inc (NASDAQ: KBALB)
Kimball International, Inc. manufactures consumer durable goods, including office, residential, hospitality, and healthcare furniture. The company’s products are sold under its own family of brand names. Kimball also supplies electronic assemblies on a contract basis to customers in the automotive, aerospace, defense, telecommunications, and computer industries.
Trinity Industries Inc (NYSE: TRN)
Trinity Industries, Inc. manufactures transportation, construction, and industrial products. The company’s products include tank and freight railcars, inland hopper and tank barges, highway guardrail and safety products, ready-mix concrete, and other products. Trinity also leases railcars and other products. The company markets its products in the United States and internationally.
GATX Corp (NYSE: GMT)
GATX Corporation leases, operates, manages and remarkets long-lived, widely used assets, primarily in the rail and marine markets. The company leases tank cars, freight cars and locomotives in North America, Europe and India. GATX Corp. also actively manages transportation and other leased assets on behalf of third parties.
Covanta Holding Corp (NYSE: CVA)
Covanta Holding Corporation conducts operations in waste disposal, energy services, and specialty insurance. The company also owns and operates waste-to-energy and power generation projects. Covanta’s waste-to-energy facilities convert municipal solid waste into renewable energy for communities primarily in the United States.
Knight Transportation Inc (NYSE: KNX)
Knight Transportation, Inc. is a short-to-medium haul, dry van truckload carrier. The company transports general commodities, including consumer goods, packaged foodstuffs, paper products, beverage containers, and imported and exported commodities. The company operates throughout the United States.
GasLog Ltd (NYSE: GLOG)
GasLog Ltd. is an international owner, operator and manager of liquefied natural gas (“LNG”) carriers. The company provides support to international energy companies as part of their LNG logistics chain.
FLIR Systems Inc (NASDAQ: FLIR)
FLIR Systems, Inc. designs, manufactures, and markets thermal imaging and broadcast camera systems for a variety of applications in the commercial and government markets. The company makes products for condition monitoring, research and development, airborne observation and broadcast, search and rescue, and surveillance and reconnaissance.
