GO
Loading...

Six Companies With Lots of Cash

Tuesday, 29 Mar 2011 | 2:54 PM ET

One of the metrics closely watched by Wall Street is the amount of cash companies put aside for strategic investments, growth initiatives, or as a hedge for a downturn.

CNBC.com ran a screen looking for stocks that appear to be undervalued in relation to the amount of cash they generate.

Below are six companies trading at a price- to- free cash flow ratio lower than 5. These companies have a market capitalization greater than $1 billion, of which more than 20 percent is cash.


Trinity Industries
Sector: Industrials
Market Cap: $2.7 billion
Free Cash Flow LTM: $585.7 million
Price to FCF: 4.68
Dividend Yield: 0.9%
One-Year % Chg: 70%


Rent-A-Center
Sector: Consumer Discretionary
Market Cap: $2.2 billion
Free Cash Flow LTM: $608.5 million
Price to FCF: 3.54
Dividend Yield: 0.7%
One-Year % Chg: 45%


Aaron's
Sector: Consumer Discretionary
Market Cap: $1.95 billion
Free Cash Flow LTM: $531.6 million
Price to FCF: 3.67
Dividend Yield: 0.2%
One-Year % Chg: 41%


Textron
Sector: Industrials
Market Cap: $7.4 billion
Free Cash Flow LTM: $1.6 billion
Price to FCF: 4.71
Dividend Yield: 0.3%
One-Year % Chg: 24%


Time Warner
Sector: Consumer Discretionary
Market Cap: $38.3 billion
Free Cash Flow LTM: $9.11 billion
Price to FCF: 4.20
Dividend Yield: 2.7%
One-Year % Chg: 11%


Ford Motor
Sector: Consumer Discretionary
Market Cap: $56.2 billion
Free Cash Flow LTM: $18.8 billion
Price to FCF: 2.99
One-Year % Chg: 9%


Data Source: Capital IQ & Thomson Reuters

Watch "Closing Bell" at 3:30pm ET for other stocks in this category you may want to consider for your portfolio.




Follow us on
Twitter @By_The_Numbers
Comments? Suggestions? Send them to bythenumbers@cnbc.com

Bythenumbers.cnbc.com

  Price   Change %Change
AA
---
F
---
RCII
---
TRN
---
TWX
---
TXT
---

Featured