Total SA (TOT) looks like a total steal to me!
With crude oil popping above $90, this morning I took a look at the companies in Oil & Gas – Integrated space and the winner is Total SA (ticker symbol TOT)
I like the fundamentals of TOT which is currently trading at $53.67, has a 52 week high of $67.52, a 52 week low of $43.07 and a staggering yield of 5.75%. I would buy this stock just for the yield but couple that with my estimated appreciation of 17%, TOT sounds like a sweet deal.
As always I would like to compare TOT with other investor’s favorites like Chevron (CVX), Exxon Mobile (XOM) and Occidental Petroleum (OXY).
Price to Revenue (lower is better)
TOT has Price to Revenue ratio of 0.67 vs. 0.96 for XOM, 0.92 for CVX and 4.21 for OXY.
Price to Tangible Book Value (lower is better)
TOT has lowest Price to Tangible BV ratio of 1.88 vs. 2.55 for XOM, 1.88 for CVX and 2.53 for OXY.
Dividend Yield % (higher is better)
Also TOT has an amazing dividend yield of 5.7% vs. 2.4% for XOM, 3.15 % for CVX and 1.53% for OXY
Here is the Price to Earnings ratios for TOT and other favorite which shows that TOT Price to Earnings ratio lags other industry leaders. My calculated average historical P/E for TOT stands at 9.47.
I estimate TOT stock to rice to a minimum of 9.4 P/E i.e. to$ 60 by next earnings results which are scheduled to be declared on 11th Feb 2011. I will also be comfortable saying that over the next year, TOT can rise to a P/E of 10 taking the stock to $63 i.e. a 17% profit potential compared to current stock price. Combine the 17% potential appreciation to $90+ oil price and exception yield of 5.7% I think this is a one sweet crude deal.