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10 Stocks With Highest Profitability Ratios


8. Avago Technologies (AVGO - Get Report) is a designer, developer and global supplier of analog semiconductor devices with a market cap exceeding $7 billion. Its portfolio includes over 6,500 products targeting four primary markets: wireless communications, wired infrastructure, industrial and automotive electronics and consumer and computing peripherals.

The company's ROA for the last 12 months was 23.98%, while total asset turnover ratio was 1.01 for the same period. ROE and ROCE for the last 12 months were 31.44% and 51.52%, respectively. The stock is trading at 12.71 times earnings, vs. the industry P/E of 15.41, according to data compiled by Bloomberg.

Quarterly net revenue was up 3.3% sequentially in the fourth quarter. Revenue grew to $623 million from $603 million in the same quarter prior year. Net income increased to $154 million, or 61 cents, up 6.9% from the prior year.

For full year 2011, net revenue improved 12% to $2.33 billion from $2.09 billion in the previous fiscal, rising 33% to $552 million, or $2.19 per share, compared to $415 million, or $1.69 per share. Recently, the company paid a quarterly interim cash dividend of 12 cents per ordinary share.

Avago has announced three new digital optocouplers optimized for use in onboard chargers and other high-voltage systems in hybrid and electric vehicles. Avago was recently included in the Nasdaq 100, effective Dec. 19.

Of the 17 analysts covering the stock, 76% recommend a buy and 24% rate a hold. Analysts have average 12-month price target of $37.64 for the stock, about 30% higher than the current price, according to a Bloomberg consensus.

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