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.
