5 Stocks With Low Price-Book Ratios
- By Tiziano Frateschi
The following stocks have low price-book ratios and have been bought by gurus. While some of them are great investments, others need to be checked again, according to the discounted cash flow calculator.
Wynn Resorts Ltd. (WYNN) is trading with a price-book ratio of 9.24, which is underperforming 94% of competitors. According to the discounted cash flow calculator, the stock has a fair value of $132 while trading at $144. The stock price is stable when compared to 12 months ago and is currently 29.41% below its 52-week high and 4.08% above its 52-week low.
The company, which operates a string of high-end hotels and casinos, has a market cap of $16.12 billion and an enterprise value of $23.03 billion.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 65.78% and return on assets of 4.29% are outperforming 59% of companies in the Global Resorts and Casinos industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.18 is below the industry median of 0.71.
Steve Mandel (Trades, Portfolio) is the largest shareholder of the company among the gurus with 3.5% of outstanding shares, followed by Daniel Loeb (Trades, Portfolio) with 1.4%.
Broadcom Inc. (AVGO) is trading with a price-book ratio of 2.81, underperforming 67% of competitors. According to the discounted cash flow calculator, the stock has a fair value of $271 while trading at $219. The stock price has declined 12% when compared to 12 months ago and is currently 23.16% below its 52-week high and 11.17% above its 52-week low.
The company supplies analog and digital semiconductor connectivity solutions. It has a market cap of $94.55 billion and an enterprise value of $103.96 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 46.65% and return on assets of 20.78% are outperforming 95% of companies in the Global Semiconductors industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.47 is below the industry median of 1.69.
The largest guru shareholder of the company is Spiros Segalas (Trades, Portfolio) with 0.59% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.23% and First Pacific Advisors (Trades, Portfolio) with 0.22%.
Constellation Brands Inc. (STZ) is trading with a price-book ratio of 3.78, which is underperforming 84% of competitors. The stock price has increased 4% when compared to 12 months ago and is currently 11.49% below its 52-week high and 6.14% above its 52-week low.
The company, which operates in the beverage industry, has a market cap of $39.83 billion and an enterprise value of $49.73 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 31.73% and return on assets of 13.02% are outperforming 55% of companies in the Global Beverages - Wineries and Distilleries industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.79.
Mandel is the company's largest guru shareholder with 2.03% of outstanding shares, followed by Loeb with 1.05% and Segalas with 0.41%.
Andeavor (ANDV) is trading with a price-book ratio of 2.32. The stock price has increased 51% when compared to 12 months ago and is currently 1.5% below its 52-week high and 72.75% above its 52-week low.
The oil refiner has a market cap of $23.09 billion and an enterprise value of $34.93 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 22.37% and return on assets of 7.46% are outperforming 54% of companies in the Global Oil and Gas Refining and Marketing industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.61.
The largest guru shareholder of the company is Hotchkis & Wiley with 0.74% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.15%, Jeremy Grantham (Trades, Portfolio) with 0.12% and Leon Cooperman (Trades, Portfolio) with 0.07%.
Occidental Petroleum Corp. (OXY) is trading with a price-book ratio of 2.9, which is underperforming 72% of competitors. The stock price has increased 30% when compared to 12 months ago and is currently 10.35% below its 52-week high and 31.48% above its 52-week low.
The oil and gas producer has a market cap of $61.08 billion and an enterprise value of $70.03 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 10.77% and return on assets of 5.28% are outperforming 70% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.13 is below the industry median of 0.51.
With 2.15% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Dodge & Cox with 0.81% and Chris Davis (Trades, Portfolio) with 0.43%.
Disclosure: I do not own any stocks mentioned in this article.
This article first appeared on GuruFocus.
