8 Undervalued Stocks With Growing Book Values

GuruFocus.com
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- By Tiziano Frateschi

The following companies have grown their book values per share (BV/S) over the last 10 years.

BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Because the BV/S may not reflect the company's true value, some investors check the tangible book value to confirm their investment ideas.


The BV/S of GameStop Corp. (GME) has grown by 8% over the last 10 years. The price-book (P/B) ratio is 1.1, and the price to tangible book ratio is 106.5.

GameStop is an omnichannel video game retailer. It sells new and pre-owned video game hardware, physical and digital video game software and accessories.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 35% at $23.4. The price has been as high as $32.67 and as low as $20.10 in the last 52 weeks. It is 28.25% below its 52-week high and 16.62% above its 52-week low. The price-earnings (P/E) ratio is 6.90.

Ray Dalio (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.87% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.44%, NWQ Managers (Trades, Portfolio) with 0.43%, Ronald Muhlenkamp (Trades, Portfolio) with 0.26%, Chuck Royce (Trades, Portfolio) with 0.09%, Jeremy Grantham (Trades, Portfolio) with 0.04%, David Dreman (Trades, Portfolio) with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The BV/S of Grupo Televisa SAB ADR (TV) has grown by 10% over the last 10 years. The P/B ratio is 3.1, and the price to tangible book ratio is 5.6.

Grupo Televisa is a media company that operates four broadcast channels in Mexico and has network coverage through affiliated stations throughout the country.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 84% at $24.82. The price has been as high as $28.62 and as low as $19.69 in the last 52 weeks. It is 13.28% below its 52-week high and 26.05% above its 52-week low. The P/E ratio is 1.64.

The company's largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 6.31% of outstanding shares, followed by Dodge & Cox with 6.25%, David Herro (Trades, Portfolio) with 3.71%, Bill Gates (Trades, Portfolio) with 2.89%, Steve Mandel (Trades, Portfolio) with 2.32%, Ken Fisher (Trades, Portfolio) with 1.79%, Mario Gabelli (Trades, Portfolio) with 0.36% and Chris Davis (Trades, Portfolio) with 0.18%.

The BV/S of Alliance Holdings GP LP (AHGP) has grown by 12% over the last 10 years. The P/B ratio is 2.8, and the price to tangible book ratio is 3.7.

Alliance is a producer and marketer of coal to U.S. utilities and industrial users. The company's ARLP Partnership operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 45% at $28.71. The price has been as high as $32.70 and as low as $16 in the last 52 weeks. It is 12.20% below its 52-week high and 79.44% above its 52-week low. The P/E ratio is 8.16.

Jim Simons (Trades, Portfolio) is the largest shareholders among the gurus with 0.13% of outstanding shares.

The BV/S of NeuStar Inc. (NSR) has grown by 12% over the last 10 years. The P/B ratio is 2.0.

NeuStar offers data sets and proprietary analytics that provide insights to help clients promote and protect their businesses.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 62% at $33.30. The price has been as high as $34.40 and as low as $21.10 in the last 52 weeks. It is 3.20% below its 52-week high and 57.82% above its 52-week low. The P/E ratio is 10.96.

PRIMECAP Management (Trades, Portfolio) is the largest shareholder of the company among the gurus with 13.24% of outstanding shares, followed by Simons with 0.61%, John Paulson (Trades, Portfolio) with 0.36%, Jones with 0.05%, Grantham with 0.03%, Gabelli with 0.03% and Dreman with 0.03%.

The BV/S of Taiwan Semiconductor Manufacturing Co. (TSM) has grown by 12% over the last 10 years. The P/B ratio is 3.8, and the price to tangible book ratio is 3.9.

Taiwan Semiconductor manufactures integrated circuits and other semiconductor devices.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 6% at $33.93. The price has been as high as $33.99 and as low as $22.75 in the last 52 weeks. It is 0.18% below its 52-week high and 49.14% above its 52-week low. The P/E ratio is 15.62.

The company's largest shareholder among the gurus is Fisher with 0.54% of outstanding shares, followed by Grantham with 0.14%, Sarah Ketterer (Trades, Portfolio) with 0.14%, Pioneer Investments (Trades, Portfolio) with 0.06%, Ron Baron (Trades, Portfolio) with 0.04%, Frank Sands (Trades, Portfolio) with 0.035, Simons with 0.03%, John Burbank (Trades, Portfolio) with 0.02% and Manning & Napier Advisors Inc. with 0.01%.

The BV/S of Open Text Corp. (OTEX) has grown by 15% over the last 10 years. The P/B ratio is 2.5, and the price to tangible book ratio is 72.4.

Open Text provides software products and services, assisting organizations in finding, utilizing and sharing business information. It also develops enterprise information management software and solutions.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 73% at $34.74. The price has been as high as $35.21 and as low as $26.80 in the last 52 weeks. It is 1.33% below its 52-week high and 29.65% above its 52-week low. The P/E ratio is 7.95.

The company's largest shareholder among the gurus is Richard Snow (Trades, Portfolio) with 0.7% of outstanding shares, followed by Simons with 0.2%, Grantham with 0.1% and Greenblatt with 0.07%.

The BV/S of Encore Capital Group Inc. (ECPG) has grown by 15% over the last 10 years. The P/B ratio is 1.6.

Encore Capital is a specialty finance company that provides debt recovery solutions.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 55% at $35.05. The price has been as high as $35.92 and as low as $17.66 in the last 52 weeks. It is 2.42% below its 52-week high and 98.47% above its 52-week low. The P/E ratio is 11.91.

Simons is the largest shareholder of the company among the gurus with 0.09% of outstanding shares.

The BV/S of Gentherm Inc. (THRM) has grown by 25% over the last 10 years. The P/B ratio is 2.7, and the price to tangible book ratio is 3.5.

Gentherm manufactures thermal management technologies for automotive passenger comfort and convenience, battery thermal management, remote power generation and patient temperature management.

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 47% at $37.10. The price has been as high as $39.55 and as low as $26.60 in the last 52 weeks. It is 6.19% below its 52-week high and 39.47% above its 52-week low. The P/E ratio is 15.14.

The company's largest shareholder among the gurus is Mairs and Power (Trades, Portfolio) with 1.93% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.25% and Snow with 0.1%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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This article first appeared on GuruFocus.


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