ROE = (net income / sales) * (sales / assets) * (assets / shareholder's equity)By looking at low P/E ratios combined with encouraging DuPont breakdowns, we can get a better sense of which stocks are soaring, but also might be trading at something close to their fair value. We were left with four companies on our list.
3. Scripps Networks Interactive, Inc. ( SNI): Operates as a lifestyle content and Internet search company in the United States and internationally. Market cap at $11.5B, most recent closing price at $78.18. MRQ net profit margin at 24.01% vs. 23.69% y/y. MRQ sales/assets at 0.163 vs. 0.163 y/y. MRQ assets/equity at 2.234 vs. 2.508 y/y.
4. Whirlpool Corp. ( WHR): Engages in the manufacture and marketing of home appliances worldwide. Market cap at $11.95B, most recent closing price at $149.81. MRQ net profit margin at 4.17% vs. 2.51% y/y. MRQ sales/assets at 0.311 vs. 0.309 y/y. MRQ assets/equity at 3.36 vs. 3.467 y/y.