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5 Defensive Companies Trading With Low Price-Earnings Ratios

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·5 min read
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- By Tiziano Frateschi

As of March 9, the GuruFocus All-in-One Screener, a Premium feature, found that the following guru-owned defensive stocks have low price-earnings ratios. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.


British American Tobacco

With a market cap of $83.34 billion, British American Tobacco PLC (BTI) has a price-earnings ratio of 9.44 and a price-book ratio of 0.96. According to the DCF calculator, the stock has a fair value of $54.64 while trading at $36.76.

5 Defensive Companies Trading With Low Price-Earnings Ratios
5 Defensive Companies Trading With Low Price-Earnings Ratios

The stock has declined 5.33% over the last 12 months and is now 11.59% below the 52-week high and 34.55% above the 52-week low.

The British American Tobacco company has a GuruFocus profitability rating of 8 out of 10. The return on equity of 9.81% and return on assets of 4.45% are underperforming 72% of companies in the tobacco products industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.08 is below the industry median of 3.03.

Jeremy Grantham (Trades, Portfolio) is the company's largest guru shareholder with 0.09% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 0.02% and BAILLIE GIFFORD & CO with 0.01%.

General Mills

With a $34.72 billion market cap, General Mills Inc. (GIS) is trading with a price-earnings ratio of 14.56. According to the DCF calculator, the stock has a fair value of $41.74 while trading at $56.78.

5 Defensive Companies Trading With Low Price-Earnings Ratios
5 Defensive Companies Trading With Low Price-Earnings Ratios

The share price has risen 4.88% over the past 12 months and is now 14.15% below the 52-week high and 21.12% above the 52-week low.

The packaged food company has a GuruFocus profitability rating of 7 out of 10. The return on equity of 29.83% and return on assets of 7.76% are outperforming 77% of companies in the consumer packaged goods industry. Its financial strength is rated 4 out of 10 with the cash-debt ratio of 0.19.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.90% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.39% and Mario Gabelli (Trades, Portfolio) with 0.10%.

Tyson Foods

With a market cap of $26.52 billion, Tyson Foods Inc. (TSN) is trading with a price-earnings ratio of 12.94. According to the DCF calculator, the stock has a fair value of $117.29 while trading at $72.71.

5 Defensive Companies Trading With Low Price-Earnings Ratios
5 Defensive Companies Trading With Low Price-Earnings Ratios

Shares have increased 19.43% over the last 12 months and are now 1.46% below the 52-week high and 70.80% above the 52-week low.

The U.S. company, which produces processed chicken and beef, has a GuruFocus profitability rank of 8 out of 10. The company's return on equity of 13.21% and return on assets of 5.73% are outperforming 68% of competitors in the industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.21.

The T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest guru shareholder with 1.20% of outstanding shares, followed by Yacktman Asset Management (Trades, Portfolio) with 0.71% and the Yacktman Fund (Trades, Portfolio) with 0.40%.

Kroger

The Kroger Co. (KR) has a market cap of $26.07 billion and is trading with a price-earnings ratio of 9.17 and a price-book ratio of 2.67. According to the DCF calculator, the stock has a fair value of $92.52 while trading at $34.44.

5 Defensive Companies Trading With Low Price-Earnings Ratios
5 Defensive Companies Trading With Low Price-Earnings Ratios

Shares have increased 10.21% over the last 12 months and are now trading 19.89% below the 52-week high and 26.02% above the 52-week low.

The U.S. grocer has a GuruFocus profitability rating of 8 out of 10. The return on equity of 32.09% and return on assets of 6.43% are outperforming 79% of companies in the retail -defensive industry. Its financial strength is rated 5 out of 10 with the cash-debt ratio of 0.11.

The company's largest guru shareholder is Warren Buffett (Trades, Portfolio) with 4.40% of outstanding shares, followed by Simons' firm with 3.24% and Pioneer Investments (Trades, Portfolio) with 0.44%.

Conagra Brands

Conagra Brands Inc . (CAG) has a market cap of $17.34 billion. Its shares are trading with a price-earnings ratio of 15.61. According to the DCF calculator, the stock has a fair value of $24.29 while trading at $35.50.

5 Defensive Companies Trading With Low Price-Earnings Ratios
5 Defensive Companies Trading With Low Price-Earnings Ratios

Shares have climbed 29% over the past 12 months and are currently 9.76% below the 52-week high and 55.50% above the 52-week low.

The packaged food company has a GuruFocus profitability rating of 6 out of 10. The return on equity of 14% and return on assets of 4.99% are outperforming 64% of companies in the consumer packaged goods industry. Its financial strength is rated 4 out of 10 with the cash-debt ratio of 0.01.

Jana Partners (Trades, Portfolio) is the company's largest guru shareholder with 2.22% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.25% and Gabelli with 0.28%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 5 Undervalued Stocks Below the Peter Lynch Value

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  • 5 Guru Stocks With Predictable Business



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This article first appeared on GuruFocus.