Consumer Goods Sector Stocks with Impressive Profitability – COH, KO, RAI, MNST, MO

  on Dec 11,2012 Posted in Finance ,Investment Ideas
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Profit margin shows the percentage of revenue that a corporation keeps as profit after accounting for fixed and variable outlays. Profit margins are measured by dividing net income by revenue.

The profit margin is mostly used for internal comparisons, as acceptable profit margins differ between industries.

Generally, narrow profit margins show higher volatile earnings. For corporations with significant fixed outlays, wide profit margins lower the risk that a drop in sales will cause a net profit loss.

Net profit margin is the net profit divided by net revenues, often showed as a percentage. This number is a sign of how effective a corporation is at cost control. In this article we will discuss high profitability stocks of consumer goods sector. Earlier we discussed services sector stocks lives in overbought territory.

Coach, Inc (NYSE:COH) offered net profit margin of 21.45% and mark the best position among consumer goods sector according to our criteria. The company has return on assets ratio of 34.67%, which is relatively strong among stocks. The company has the market capitalization of 15.98 billion while its P/E ratio of 15.77. Institutional ownership of the stock was 91% while its 283.69 million shares were outstanding.

The Coca-Cola Company (NYSE:KO) has market capitalization of 168.82 billion and offered 26.52% Return on equity.  The company’s institutional ownership was 62% and its price to earnings ratio was 19.65. PEG ratio, which measures growth also, was 2.40. Net profit margin of the company was 18.63% while gross profit margin was 60.45%.

Reynolds American, Inc (NYSE:RAI) has market capitalization of 23.92 million while its Price to earnings ratio was 16.20. The company offered earning per share of 2.64 and its 558.95 million shares were outstanding while the 47% shares of the company were owned by institutional investors. The company has return on equity ratio of 24.35 while ROA was 9.53%. Net profit margin of the company was 18.23%.

Monster Beverage Corp (NASDAQ:MNST) has return on equity ratio of 36.94% while its return on investment ratio was 32.77%. The corporation offered 26.53% as return on assets. The company has market capitalization of $9.06 billion while its EPS was 1.82. Net profit margin was 16.84% while gross profit margin was 51.82%.

Finally let’s have a quick look on Altria Group, Inc (NYSE:MO). The company has market capitalization of 67.68 billion while offered P/E ratio of 17.41. The Beta factor, which is used as a measure of a company’s volatility in relation to the market, was 0.46 while the PEG ratio of the security was 2.60. Net profit margin was 15.98%. The company has ROE ratio of 94.15% while ROI value remained 13.31%.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.





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