Undervalued Stocks with Low Price-Earnings Ratios
- By Tiziano Frateschi
The following stocks are trading with wide margins of safety, according to the DCF calculator and some of them have very low price-earnings (P/E) ratios. GuruFocus' All-in-One Screener can be used to find similar stocks.
Amerco Inc. (UHAL) has a market cap of $6.88 billion and a GuruFocus business predictability rating of 2 of 5 stars. The stock has a price of $350.88 per share with a P/E ratio of 14.77 and according to the DCF calculator, is trading with a margin of safety of 51%, since its fair value is $710.28. During the last 12 months, the price of the stock has dropped by 5% and is now 19.69% below its 52-week high and 14.79% above its 52-week low.
The company is a moving and storage operator and also supply products and services to help people move and store their household and commercial goods through its subsidiary. It also provides Life insurance, Property and Casualty Insurance.
Its profitability and growth is rated 7 of 10 with a ROE of 20.96% and a ROA of 5.94%, which are ranked higher than 74% of other companies in the global rental and leasing services industry.
The largest shareholder among the gurus is Robert Bruce (Trades, Portfolio) with 0.99% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.84%, Julian Robertson (Trades, Portfolio) with 0.26% and Jim Simons (Trades, Portfolio) with 0.13%.
Signature Bank (SBNY) has a market cap of $6.47 billion and a GuruFocus business predictability rating of 5 of 5 stars. The stock has a price of $120.56 per share, with a P/E ratio of 15.83 and according to the DCF calculator, is trading with a margin of safety of 44%, since its fair value is $216.93. During the last 12 months, the price of the stock has dropped by 16% and is now 26.10% below its 52-week high and 5.42% above its 52-week low.
The company is a full service commercial bank, which offers business and personal banking products and services, as well as investment, brokerage, asset management and insurance products and services through its subsidiary.
Its profitability and growth is rated 8 of 10 with a ROE of 13.67% and a ROA of 1.24%, which are ranked higher than 72% of other companies in the global banks - regional - US industry.
Columbia Wanger (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.73% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.63%, Jim Simons (Trades, Portfolio) with 0.41%, Pioneer Investments (Trades, Portfolio) with 0.07% and RS Investment Management (Trades, Portfolio) with 0.06%.
Telecom Argentina SA ADR. (TEO) has a market cap of $3.55 billion and a GuruFocus business predictability rating of 4.5 of 5 stars. The stock has a price of $18.34 per share, with a P/E ratio of 16.10 and according to the DCF calculator, is trading with a margin of safety of 59%, since its fair value is $44.23. During the last 12 months, the price of the stock has risen by 2% and is now 9.57% below its 52-week high and 37.28% above its 52-week low.
The company provides fixed-line public telecommunication services, international long-distance services, data transmission and Internet services in Argentina with segments Fixed Services, Personal Mobile Services and Nucleo Mobile Services.
Its profitability & growth is rated 8 of 10, with a ROE 19.94% and a ROA of 9.63%, which are ranked higher than 82% of other companies in the global telecom services industry.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 1.16% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.27%.
Stepan Co. (SCL) has a market cap of $1.51 billion. The stock has a price of $67.32 per share, with a P/E ratio of 16.55 and according to the DCF calculator, is trading with a margin of safety of 42%, since its fair value is $115.87. During the last 12 months, the price of the stock has risen by 38% and is now 0.06% below its 52-week high and 66.26% above its 52-week low.
The company along with its subsidiaries produces specialty and intermediate chemicals, which are sold to other manufacturers and are used in end products. It manufactures and markets surfactants, polymers and specialty products.
Its profitability and growth is rated 6 of 10, with a ROE of 16.24% and a ROA of 7.51%, which are ranked higher than 74% of other companies in the global specialty chemicals industry.
Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 1.11% of outstanding shares, followed by David Dreman (Trades, Portfolio) with 0.51%, Barrow, Hanley, Mewhinney & Strauss with 0.32%, Joel Greenblatt (Trades, Portfolio) with 0.11% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.
Hibbett Sports Inc. (HIBB) has a market cap of $795.56 million and a GuruFocus business predictability rating of 5 of 5 stars. The stock has a price of $35.55 per share, with a P/E ratio of 11.66 and according to the DCF calculator, is trading with a margin of safety of 41%, since its fair value is $59.99. During the last 12 months, the price of the stock has dropped by 22% and is now 22.52% below its 52-week high and 28.90% above its 52-week low.
The company is an operator of sporting goods retail stores in small to mid-sized markets mainly in the Southeast, Southwest, Mid-Atlantic and the Midwest.
Its profitability and growth is rated 7 of 10 with a ROE of 22.03% and a ROA of 15.53%, which are ranked higher than 86% of other companies in the global specialty retail industry.
Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus, with 0.64% of outstanding shares, followed by Robert Olstein (Trades, Portfolio) with 0.23%, Joel Greenblatt (Trades, Portfolio) with 0.19% and Jeremy Grantham (Trades, Portfolio) with 0.04%.
Jacksonville Bancorp Inc. (JXSB) has a market cap of $51.05 million and a GuruFocus business predictability rating of 2.5 of 5 stars. The stock has a price of $28.42 per share, with a P/E ratio of 16.52 and according to the DCF calculator, is trading with a margin of safety of 40%, since its fair value is $47.69. During the last 12 months, the price of the stock has risen by 18% and is now 14.09% below its 52-week high and 22.55% above its 52-week low.
The company is a holding company for Jacksonville Savings Bank, which is engaged mainly in the business of attracting retail deposits from the general public in its market area.
Its profitability and growth is rated 8 of 10 with a ROE of 6.65%, which is ranked lower than 63% of other companies in the global savings and cooperative banks industry and a ROA of 1.00%, which is ranked higher than 60% of other companies.
ConnectOne Bancorp Inc. (CNOB) has a market cap of $518.79 million. The stock has a price of $17.19 per share, with a P/E ratio of 12.47 and according to the DCF calculator, is trading with a margin of safety of 39%, since its fair value is $28.24. During the last 12 months, the price of the stock has dropped by 18% and is now 18.80% below its 52-week high and 15.68% above its 52-week low.
The company is a holding company for Union Center National Bank. It offers lending, depository and related financial services to commercial, industrial and governmental customers.
Its profitability and growth is rated 7 of 10 with a ROE of 8.77% and a ROA of 1.05%, which are ranked higher than 54% of other companies in the global banks - regional - US industry.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 2.55% of outstanding shares.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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This article first appeared on GuruFocus.
