price to sales ratio

GENERAL MILLS INC. $61 (New York symbol GIS, Conservative Growth Portfolio, Consumer sector; Shares outstanding: 594.4 million; Market cap: $36.3 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.generalmills.com) is one of the world’s largest food makers. Its top brands include Cheerios, Wheaties and Trix (cereals), Pillsbury and Betty Crocker (baking products), Haagen-Dazs (ice cream), Old El Paso (tacos), Progresso (soups and salads) and Yoplait (yogurt). The company recently sold its North American Green Giant frozen vegetable business for $788 million. It will continue to use the Green Giant brand outside of North America. Partly due to that deal, General Mills’ overall sales in its fiscal 2016 third quarter, which ended February 28, 2016, fell 8.0%, to $4.00 billion from $4.35 billion a year earlier. Excluding exchange rates, sales declined just 4.0%....

CONAGRA FOODS INC. $45 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 436.4 million; Market cap: $19.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.conagra foods.com) makes packaged foods, including Chef Boyardee canned pasta, Hunt’s tomato sauce, Peter Pan peanut butter, Orville Redenbacher popcorn and Reddi-wip whipped cream. The company recently sold its private-label foods business to TreeHouse Foods (New York symbol THS) for $2.6 billion. Excluding these operations, ConAgra sales for its fiscal 2016 third quarter, which ended February 28, 2016, rose 0.6%, to $2.92 billion from $2.91 billion a year earlier. Earnings fell 11.6%, to $187.6 million from $212.3 million. Due to more shares outstanding, earnings per share fell 16.3%, to $0.41 from $0.49....

SNAP-ON INC. $163 (New York symbol SNA; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 58.2 million; Market cap: $9.5 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.5%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and sells them through a fleet of franchised vans that visit garages. It also makes specialized tools for industrial customers. In the three months ended April 2, 2016, the company’s revenue gained 0.8%, to $834.2 million from $827.8 million a year earlier. But excluding exchange rates and acquisitions, sales gained 2.5%. Thanks to an ongoing efficiency plan, earnings per share rose 15.5%, to $2.16 from $1.87. The stock trades at 18.3 times the $8.93 a share that Snap-On will likely earn this year. That’s a somewhat high multiple for a company that relies on the cyclical automotive industry for 60% of its earnings....

MCCORMICK & CO. INC. $93 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 115.3 million; Market cap: $10.7 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.8%; TSINetwork Rating: Average; www.mccormick.com) has paid $114 million for Botanical Food Co. Based in Australia, this firm makes packaged herbs under the Gourmet Garden brand. It sells these products mainly in Australia and North America. The purchase complements McCormick’s existing spice products. It will also add $53 million to its annual sales of $4.3 billion. The stock now trades at 24.9 times the $3.73 a share that the company will likely earn in its current fiscal year. That’s a high multiple in light of McCormick’s growth-by-acquisition strategy and currency risk....

In 2012, Procter & Gamble began a major restructuring that included selling dozens of its less-important brands, closing plants and cutting jobs. The company expects to finish the plan in the next few months. Those efforts will greatly improve Procter’s long-term profitability, and spur its stock price. Higher earnings will also give it more room to buy back shares and hike dividends. PROCTER & GAMBLE CO. $80 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 2.7 billion; Market cap: $216.0 billion; Price-to-sales ratio: 3.0; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pg.com) is one of the world’s largest makers of household and personal care goods. It began operating in the U.S. in 1837, and now sells its products in over 180 countries. Overseas markets account for 60% of its total sales....

GANNETT CO., INC. $18 (New York symbol GCI; Conservative Growth Portfolio, Consumer sector: Shares outstanding: 116.5 million; Market cap: $2.1 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.6%; TSINetwork Rating: Average; www.gannett.com) publishes daily newspapers in 107 U.S. markets, including its flagship newspaper, USAToday. It also has 19 papers in the U.K., and over 200 magazines and other publications. The company has offered to buy Tribune Publishing Co. (New York symbol TPUB). This firm owns 11 daily papers, including the Chicago Tribune and the Los Angeles Times, as well as 160 weekly papers and 120 websites. Including Tribune’s debt, the offer is worth $815 million. Eliminating overlapping operations would let Gannett cut $50 million from its annual costs; it earned $209.1 million, or $1.79 a share, in 2015....

TOYOTA MOTOR CO. ADRs $106 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.5 billion; Market cap: $159.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.toyota.com) is the world’s largest carmaker. In its fiscal 2016 third quarter, which ended December 31, 2015, Toyota sold 2.22 million vehicles worldwide, down 2.1% from a year earlier. North American sales rose 2.2%. However, sales fell 4.5% in Europe, 1.0% in Japan and 3.2% in other parts of Asia. Revenue gained 1.9%, to $61.0 billion from $59.9 billion. Revenue in Japanese yen rose 2.4%. Cost cuts and favourable exchange rates boosted earnings per ADR by 4.7%, to $3.32 from $3.17 (each American depositary receipt equals two Toyota common shares)....

Increasingly health-conscious consumers are switching away from processed foods. In response, these top food producers are developing healthier products. But they are also restructuring to cut their costs. That should continue to expand their earnings. KRAFT HEINZ CO. $79 (Nasdaq symbol KHC; Conservative Growth and Income Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $94.8 billion; Price-to-sales ratio: 5.2; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.kraftheinzcompany.com) makes condiments and sauces (such as Heinz Ketchup) as well as other packaged foods. These include Velveeta and Philadelphia Cream Cheese, processed meats (such as Oscar Meyer hot dogs) and beverages (such as Maxwell House coffee). Kraft Heinz took its current form on July 2, 2015, through the merger of Kraft Foods Group and H.J. Heinz. The combined firm is the fifth-largest food and beverage producer globally....

HONDA MOTOR CO. LTD. ADRs $28(New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $50.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.honda.com) is Japan’s second largest carmaker and the world’s biggest motorcycle manufacturer. In its fiscal 2016 third quarter, which ended December 31, 2015, Honda sold 1.23 million vehicles, up 4.6% from a year earlier. The launch of new models in China increased Asian sales by 16.7%. Sales in Europe also jumped 19.4%. However, sales fell 1.7% in North America and 6.8% in Japan. Motorcycle sales declined 3.9% due to weaker demand in Japan and other parts of Asia. For the quarter, revenue rose 4.4%, to $30.1 billion from $28.9 billion. Due to costs related to fixing faulty airbags and unfavorable exchange rates, earnings per ADR declined 6.6%, to $0.61 from $0.57 (each ADR equals one common share)....

SNAP-ON INC. $163 (New York symbol SNA; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 58.2 million; Market cap: $9.5 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.5%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and sells them through a fleet of franchised vans that visit garages. It also makes specialized tools for industrial customers. In the three months ended April 2, 2016, the company’s revenue gained 0.8%, to $834.2 million from $827.8 million a year earlier. But excluding exchange rates and acquisitions, sales gained 2.5%. Thanks to an ongoing efficiency plan, earnings per share rose 15.5%, to $2.16 from $1.87. The stock trades at 18.3 times the $8.93 a share that Snap-On will likely earn this year. That’s a somewhat high multiple for a company that relies on the cyclical automotive industry for 60% of its earnings....