There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

November 22, 2010 - Computer Sciences Corporation (CSC-NYSE) offers information technology (IT) and business process outsourcing, as well as IT and professional services to the commercial and government markets.

Its business process outsourcing services consist of procurement and supply chain, call centers and customer relationship management, credit services, claims processing, and logistics. It also provides IT and professional services comprising systems integration services, such as designing, developing, implementing, and integrating information systems; and consulting and professional services that include advising clients on the strategic acquisition and utilization of IT and on business strategy, security, modeling, simulation, engineering, operations, change management, and business process reengineering.

In addition, the company licenses sophisticated software systems for the financial services and other industry-specific markets and provides a range of end-to-end business solutions; offers enterprise modernization, telecommunications and networking, managed services, base and range operations, and training and simulation; and provides computer equipment repair and maintenance services and credit reporting services.

It offers services to the aerospace and defense, automotive, chemical and natural resources, consumer goods, financial services, healthcare, manufacturing, retail and distribution, telecommunications, and technology industries. The company has operations in North America, Europe, and the Asia-Pacific region, including India and Australia. Computer Sciences Corporation was founded in 1959 and is based in Falls Church, Virginia.

You may have read about CSC's concerns with the National Health Services (NHS). They're in a contract that will be renewed in December which will most likely be cut by 10%. The stock has been hurt by this, it would seem, irrationally. The contract is worth about 2% of all revenues for CSC. The new contract will run for 10 years, and most likely, management will recover these lost revenues with new sales or have an opportunity to renegotiate the NHS agreement when the economy is stronger.

New business keeps coming. New orders are up to $34 billion from $28 billion last year at this time. Once governments increase tax revenues, more contracts should be forthcoming. A global economic pickup with some strength will favor CSC as their services contribute to better efficiencies in government programs as well as businesses looking to upgrade IT.

One more reason to consider this financially strong company (Financial Strength is A.): There's a new dividend of 15 cents a quarter or 60 cents a year. There's plenty of cash to pay it since the bank account shows $2.657 billion. The dividend is expected to be paid in late July , October, January, and April.

More numbers: Trailing P/E is 9 while Forward P/E is 8.09. This is the lowest P/E ratio for the stock in17 years, the farthest back my data go. Price to sales ratio is .44. Price to book is 1.02. Book value is $45.14. Operating margin was 7.64% for the last 12 months while Profit margin was 4.95%. Return on equity was 12.01% and Return on assets was 4.66%. Total cash per share is $17.20. Debt to equity is .56. Current ratio is 2.16. Total debt is $3.95 billion.

The stock has taken a hit over the lower contract agreement with NHS, but it would seem investors are over reacting to that. Valuations on the stock are attractive at this level. Conservative investors with a view beyond this year and next could be handsomely rewarded, especially if the global economy gains traction sooner than anticipated.

- Company Web site: www.csc.com

- Ted Allrich