In order to be in the top fifty companies with available cash, a company would have to have $4.9 billion in cash — 69% higher than in 2006. The five companies discussed below have over $345 billion of the $1.45 trillion that accounts for all available cash in the U.S. By the end of 2012, the top fifty companies were sitting on $889 billion, which accounts for 61% of the total pie. In 2011, this total was $784 billion or 59%. Just looking at these numbers, it becomes obvious that the top cash hoarders are becoming richer.
Apple Inc. (NASDAQ:AAPL)
So, we all know that Apple Inc. (NASDAQ:AAPL) is a cash machine. Investors have even questioned where they will spend the surplus of cash that they have. Apple Inc. (NASDAQ:AAPL) currently holds approximately 9.5% of the total pie. Their $137.1 billion in total cash represents the largest amount of any company. This $137.1 billion is more than twice the cash available to the largest cash holder in America. Apple Inc. (NASDAQ:AAPL) generated $156.5 billion in revenue in 2012. Although their cash has been accumulated for a while, it represents approximately 86% of last year’s total revenues. 69% of their available cash lies overseas. As for valuation, the company holds a P/E of 10.3 and a FCF yield of 10.9%.
Microsoft Corporation (NASDAQ:MSFT)
You will likely notice a trend among these companies. The tech industry holds 38% of the total, and it has grown 60% in just three years. Microsoft is the second largest cash holder around, despite having 89% of it held overseas. The company has $68.3 billion in cash, which is approximately 92% of last year’s total revenue. The company’s P/E is 15.5, but Morningstar shows the industry average at a whopping 45. Value/bargain investors should love this opportunity because of its 11.6% FCF yield. Microsoft’s shareholders have experienced a 4.94% increase YTD.
Google Inc (NASDAQ:GOOG)
Yes, they have been everywhere in the news lately. Google is certainly making its mark as a stock with excellent performance as well as company growth. Yes, the tech sector holds the top three positions and also accounts for $556 billion. Google has $48.1 billion in total cash and holds 65% of it overseas. Google’s P/E is 25.1, and has a FCF yield of 4.9%. Its stock has increased more than 13% YTD, despite its recent slump.
Pfizer Inc. (NYSE:PFE)
Yes, finally, a company that is not in the tech sector. What did you expect besides a pharmaceutical? Pfizer Inc (NYSE:PFE) currently holds $46.9 billion of the $196 billion of total cash in the healthcare/pharmaceutical industry. YTD the stock is up 10.1%, but Pfizer Inc (NYSE:PFE) shows a P/E of 22.2. With a 7.7% FCF yield and a dividend yield of 3.2, it is priced cheaply, has tons of cash, and its stock has increased nearly 30% in the past year. Its 2012 revenues were down from the two previous years, but its revenues have only increased by approximately 31% over the past decade.
Cisco Systems, Inc. (NASDAQ:CSCO)
We may have escaped the tech sector for a brief moment, but we are back. After an 11.45% increase in 2012, Cisco Systems Inc (NASDAQ:CSCO)‘s stock has increased 6.14% YTD. Remarkably, Cisco Systems Inc (NASDAQ:CSCO) has more total cash in its possession than the revenues the company generated in 2012. Its total cash is $46.4 billion while its 2012 revenues were $46.1 billion. 85% of its cash is stored overseas, and the company is discounted as its FCF yield of 9.3% shows. Cisco Systems Inc (NASDAQ:CSCO) shows a P/E of 12.4. The chart below shows how these companies’ FCF has varied over the past five years.
AAPL Free Cash Flow data by YCharts
The Foolish Conclusion…
For six consecutive years corporate America has dramatically increased its cash piles — these are just the top five cash holders in America. In 2012 the cash piles grew by $130 billion. Although Google may not have the FCF yield that these other companies have, that metric alone shouldn’t scare investors off. These other companies may be a better value, but Google seems to crush competition in virtually every area. Don’t base your decision to invest (or not invest) purely on these figures. This is just a tiny corner of the picture, but all of these companies seem to be generating more money, building up cash, and presenting opportunities for investors.
The article The Top 5 Cash Holders Store Money Abroad originally appeared on Fool.com and is written by Tyler Wofford.
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