Carillion
Carillion has a StockRank of 94, up from 88 last week.
Carillion has strong revenue visibility for 2015 of 85%, based on expected revenue and on secure orders plus probable orders. Indeed, Carillion's management report that new order intake has been strong and over the past twelve months the Group has won contracts worth £4.6bn. The Group expects to have an order book plus probable orders at the year end worth over £18.5bn. Carillion could also benefit from government plans to boost infrastructure spending after the 2015 election.
The company is expected to have a dividend yield of 5.6% during the year ending December 2015. Carillion seems to be well placed to support this dividend, with a dividend cover of 1.9 not to mention more operating cash flow (27p) than the projected dividend for 2015 (18p). The company also has improving fundamentals and a Piotroski F-Score of 7 out of 9, indicating that Carillion is more profitable than it was last year, is better placed to service long-term debt and is also making more cash than it is reporting as profit (ie. Carillion is generating good quality earnings).
Bovis Homes
Bovis Homes has a StockRank of 94, up from 89 last week.
Home buyers across the UK have good access to mortgages and have been more confident about buying a home. This has been supported by the greater certainty provided by the extension of the Government's Help to Buy scheme.
This has helped Bovis grow earnings by 40% over the last twelve months while revenues have grown by 23% on average each year over the last three year. Bovis' average sale price rose from £188,500 to £210,00 during 2014. Looking ahead, earnings are expected to grow by another 30% in 2015, as the company is predicted to boost transaction volumes by 30% while average sale prices rise by 10%.
Furthermore, the company is expected to have a dividend yield greater than 4% in 2015, supported by a dividend cover of 2.7. Bovis also has amongst the highest operating margins in the housebuilding industry - 16% compared…
