3 Stocks With Low Price-Sales Ratios
Investors may want to have a look at the following stocks, as they have low price-sales ratios, high profitability and robust balance sheets.
Walmart Inc
The first company to have a look at is Walmart Inc (NYSE:WMT), a Bentonville, Arkansas-based global discount stores giant.
The stock traded at a price of $121.56 per share at close on June 5 for a price-sales ratio of 0.64, which is higher than the industry median of 0.37.
Walmart has a GuruFocus profitability rating of 7 out of 10, driven by a return on equity of 20.82% (versus the industry median of 6.43%) and a return on assets of 6.39% (versus the industry median of 2.35%).
The retailer has received a positive GuruFocus rating of 6 out of 10 for its financial strength. The debt-to-Ebitda ratio of 2.15 is better positioned than the industry median of 3.46. Also, the Piotroski F-Score of 6 out of 9 indicates that the financial situation at Walmart is stable.
After a 15% share price increase over the past year, the stock has a market cap of $344.25 billion and a 52-week range of $98.85 to $133.38.
The stock holds an overweight recommendation rating on Wall Street.
CVS Health Corp
The second company to have a look at is CVS Health Corp (NYSE:CVS), a Woonsocket, Rhode Island-based provider of healthcare plans and related services in the U.S.
The stock price traded at $68.35 per share at close on June 5 for a price-sales ratio of 0.32, which is more compelling than the industry median of 0.81.
CVS Health Corp has a GuruFocus profitability rating of 8 out of 10, driven by a good operating margin (compared to industry competitors) of 4.87% and a return on equity of 10.85%.
The company has received a positive GuruFocus rating of 5 out of 10 for its financial strength. The Piotroski F-score of 7 out of 10 indicates that the company's financial situation is a healthy one.
After a 26.8% share price increase over the past year, the stock has a market capitalization of $89.34 billion and a 52-week range of $51.72 to $77.03.
The stock holds an overweight recommendation rating on Wall Street.
CBRE Group Inc
The third company to have a look at is CBRE Group Inc (NYSE:CBRE), a Los Angeles-based global provider of commercial real estate services.
The stock traded at $54.02 per share at close on June 5 for a price-sales ratio of 0.75, which is lower than the industry median of 2.04.
CBRE Group has a GuruFocus profitability rating of 8 out of 10, driven by a return on equity of 23.64% (versus the industry median of 5.74%) and a return on assets of 8.65% (versus the industry median of 2.21%).
CBRE has received a GuruFocus score of 6 out of 10 for its financial strength. The Piotroski F-Score of 6 out of 10 indicates that CBRE is a financially stable company.
After a 9.7% share price increase over the past year, the stock has a market cap of $18.11 billion and a 52-week range of $29.17 to $64.75.
The stock holds an overweight recommendation rating on Wall Street.
Disclosure: I have no positions in any securities mentioned in this article.
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This article first appeared on GuruFocus.
